156 10 3494 https://omeka.ibu.edu.ba/files/original/4e020ee3e6cfe53db12ea2af8d7ec995.pdf f9cbfd6c5104cf4d35ad9cf865418a14 PDF Text Text Journal of Economic and Social Studies Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Abderrazak DHAOUI University of Sousse – Tunisia, Faculty of Economic Sciences and Management Department of Econometrics and Management abderrazak.dhaoui@fsegs.rnu.tn ABSTRACT The change in trading volume and returns and the dysfunction of the economy and more specifically of financial markets has been increasingly attracting attention of researchers, analysts, practitioners, institutions as well as government organizations. This paper investigates the factors that are able to explain how financial markets work. Testing the rational expectation hypothesis and different components of animal spirits including investors’ beliefs and their behavioral biases, results show that economy is driven by animal spirits and not by rational behavior. Considering the classification of the sample by periods of stability and periods of excessive volatility, results incite to think that financial markets work in terms of economic cycles. JEL Codes: G02, G11, G12, G14, G17. Volume 3 Number 1 Spring 2013 KEYWORDS Investors’ Beliefs, Animal Spirits, Economy Dysfunction, Volatility, Rational Expectation. ARTICLE HISTORY Submitted:10 March 2012 Resubmitted:19 Jully 2012 Resubmitted: 5 August 2012 Accepted:6 September 2012 163 �Abderrazak DHAOUI Introduction Financial markets have witnessed an excessive change in trading volume and returns which causes abnormal losses and tremendous financial recessions and scandals affecting the financial and economic world during about the last thirty years (July 1990 to March 1991, March to November 2001 and the recession that began in December 2007 in the case of the U.S., the recession of the 1990s for the Japan, Indonesia after 1998, Argentina after 2001, European Union during 2000 and 2001, East Asia during 1997,…). In the real economic world, these recessions and scandals have not been known only in recent decades, they have been observed since more than one hundred years. The best known are, however, as an indication and not limitation, those of the crash of October 1929 and the oil crisis of 1973. Although the importance of investigations they made, economists have failed to understand how the economy really works (Posner, 2009). In this sense, different explanations are theoretically considered to explain the excessive crises and scandals affecting largely the financial and economic spheres, especially, spanning about the last five decades. In financial markets, the authors analyze the efficiency of markets and the rationality of investors and attribute the dysfunction of financial markets to informational bias. However, in spite of the importance of its implications the rational expectation hypothesis, largely based on the efficient market hypothesis, fails to explain the excessive change in trading and returns in the major financial markets in developed and emerging countries (see, Lavoie, 2010). Numerous other authors attribute the excessive change in returns and trading volume in the major international markets to behavioral biases and investors’ belief such as overconfidence (Daniel, Hirshleifer and Subrahmanyam, 1998), optimism (Haruvy, Stahl and Wilson, 1999; Weinstein, 1989; Otten, 1989) or pessimism (De Bondt and Thaler, 1987; Barberis Shleifer and Vishny, 1998). More recently, Akerlof and Shiller (2009) come back to reconsider the Keynesian General Theory recommendation and introduce what they call, such as used for the first time by Keynes (1936), the “animal spirits” in order to explain how the economy really works. However, in spite of the importance of prior investigations, the causes of financial and economic crises and recessions remain disputable and the results remain nonconclusive. This leads to investigate the dysfunction of financial markets introducing variables other than that referred to the rational expectation considering, among others, investors’ beliefs and behaviors. The aim of this paper is, consequently, to examine the causes of crises and scandals in the financial and economic world and 164 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 to understand how the economy really works. In order to do, we investigate together the hypothesis of rational expectation as well as the behavioral biases. These latter are expressed in terms of animal spirits including optimism, pessimism, overconfidence and spontaneous reaction. This investigation gives answers to our main question, which is the following: What are the factors influencing the way how financial and economic spheres work? Considering the trading volume and the stock market index as a financial proxy for the economy work, results, using data for 12 International Capital Markets over the period spanning August 2002 to mid-November 2011, remain non conclusive. Classification of the analysis by periods of stability and periods of excessive volatility indicates same impacts of explanatory variables on the trading volume for different periods and for about all markets. However, in the global vision, economy is largely driven by animal spirits. The rational expectation hypothesis loses of significance and fails to explain how the economy works. The remainder of this paper is organized as follows: section 2 presents a theoretical overview of the factors which are likely able to explain how the economy works. Section 3 describes the methodology and the data framework of this study and specifies the model to estimate. In section 4, we present and discuss the main results. Section 5 is spared to the conclusion. Literature Review Economists consider that economic and financial recessions and crises are mainly caused by factors excluding changing in thought patterns. They attribute the dysfunction of economies and more specifically of financial markets to the failure of investors to expect rationally the future incomes and the evolution of stock returns. Beliefs and sentiments are largely excluded from theoretical and empirical models. Behavioral finance, however, introduces the beliefs and sentiments such as optimism, pessimism, overconfidence… to explain the excessive volatility in prices and trading volumes. Akerlof and Shiller (2009, p. 4) argue in the specific framework of Volume 3 Number 1 Spring 2013 165 �Abderrazak DHAOUI behavior explanation that “the current crisis bears witness to the role of such changes in thinking. It was caused precisely by our changing confidence, temptations, envy, resentment, and illusions”. These thinking components compose according to Akerlof and Shiller what they call the “Animal Spirits”. In this specific framework, they consider that Human psychology drives the economy and matters for global capitalism. This behavior argument (i.e. animal spirits) has appeared since about more than seventy years ago when Keyens (1936) has noted, in his Genaral Theory, that about most of what we do in our life and especially in economic life are mainly due to behavioral biases such as animal spirits and not as a simple result of rational reaction toward acts and events. In this specific area, he argues that “most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the results of animal spirits […] and not at the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities” (Keynes, 1932, p. 168). This point of view is supported more recently by Akerlof and Shiller (2009, p. 168) who insist on an explicit manner on the importance of the behavioral components of which the animal spirits in the economic life. They argue, “It is necessary to incorporate animal spirits into macroeconomic theory in order to know how the economy really works. In this respect the macroeconomics of the past thirty years has gone in the wrong direction. In their attempts to clean up macroeconomics and make it more scientific, the standard macroeconomists have imposed research structure and discipline by focusing on how the economy would behave if people had only economic motives and if they were also fully rational.”. Here, the authors challenge in an explicit manner the rational expectation hypothesis. We note, accordingly, that the authors insist on the incorporation of psychological components to explain the evolution of markets and economies. Thus, a non surprising sentence shown on the cover page of their book is “How Human Psychology Drives the Economy and Why it Matters for Global Capitalism”. This incites to new thinking in the framework of the evolution of the financial economic world. Considering both the definition given by Keynes (1936) and that of Akerlof and Shiller (2009) to the concept of “animal spirits”, we can investigate the impact of several psychological factors on the evolution of the two components of financial markets namely stock prices and trading volume. However, before these investigations, we try to define the concept of “animal spirits” according to these authors. Keynes (1936, p.161) defines the “animal spirits” as “a spontaneous urge to action rather than inaction”. From this definition, Keynes excludes all rational components from investors’ behavior. Akerlof and Shiller (2009) continue in the same line of idea and enlarge this 166 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 definition to insert other behavioral components such as Antisocial behavior or Social limits of profits, Monetary illusion, Changes in economic equity, Fairness, Legends instead facts and figures, Corruption, History, Exuberance and overconfidence (see Akelrlof and Shiller (2009, p. 5-6) and Guldberg (2010) for more details). In this framework, Keynes (1936) as well as Akerlof and Shiller (2009) challenge the rational expectation hypothesis and incite to introduce human psychology as the crucial factor driving investors’ decisions and, therefore, markets and economies. Keynes challenges, especially, the rational expectation hypothesis since it is based on a quantitative model neglecting human aspects. He considers, however, that Human aspects matter more than rational expectation in making decision. In this line, he argues explicitly that about the majority of our decisions depends only on these behavioral components. Several empirical studies have confirmed the behavior based explanations of the economy works in the major international markets in developed and emerging countries. In a recent work, Dhaoui, Farhani and Garfatta. (2012) attribute the changes in trading volume in the Japanese market to the aggressive reaction of overconfident investors. Dhaoui (2011) introduce several behavioral components to explain the economy works in the case of five developed countries: Japan, U.S., Switzerland, U.K. and France. He developed an empirical model in order to investigate the impact of rational expectation as well as investors’ beliefs such as Overconfidence, Pessimism, Optimism and Sponateous reaction on trading volume. The results of the study show that the rational expectation hypothesis fails to explain the evolution of the trading volume as one of the financial components of a stock market. The impact of the behavioral factors varies, however, from one market to the other depending on the specificity and the characteristics of the population. The changes of the trading volume in the context of the Japanese is explained by the aggressive reaction of more overconfident investors. Oppositely, the change of trading in the French Market is due, especially, to the excessive pessimism in the investors’ beliefs. The excessive change in trading in the U.S., the Swiss and the U.K. markets are due, however, to more than one psychological factor. The reactions of optimistic, pessimistic or overconfident investors as well as that of those with spontaneous reaction drive these markets and influence largely the evolution of trading. The investors’ beliefs as components of animal spirits are also considered in several other studies (Daniel, Hirshleifer and Subrahmanyam, 1998; Haruvy, Stahl and Wilson, 1999; Weinstein, 1989; Otten, 1989; De Bondt and Thaler, 1987; Barberis Volume 3 Number 1 Spring 2013 167 �Abderrazak DHAOUI Shleifer and Vishny, 1998; Ciccone, 2003; Piroscă, 2011). A point of view commonly shared by the major of authors is that investors’ beliefs impact significantly the economy works and explain in a major part the economy dysfunction. Taken together, these empirical and theoretical arguments give explanations to the financial distress. The financial recessions can be interpreted as a consequence of an interruption of normal functioning of markets. In these lines, Hakkio and Keeton (2009, p. 6) argue theoretically that “financial stress can be thought of as an interruption to the normal functioning of financial markets”. The interruption in markets functioning implies the reject of the hypotheses according to which financial markets react following fundamental prediction. Anomalies and behavioral biases play therefore a pivotal role in the decision-making process. The investors’ beliefs are, hence, the most important factors driving the economy works. In this sense, Hakkio and Keeton (2009, p. 6) consider that “one common sign of financial stress is increased uncertainty among lenders and investors about the fundamental values of financial assets”. This uncertainty can be explained as a consequence of the non-rational reaction of investors. The behavioral based reaction induces a distorted prevision of the price evolution given the uncertainty in investors’ beliefs and sentiments. This influences significantly the evolution of the two components of financial markets namely returns and trading volumes. Accordingly, the abnormal changes in trading volumes and the low returns largely observed in the major international markets can be explained among others by the reaction of non-rational investors. In this same vein, Dhaoui (2011) among others found that the rational expectation hypothesis loses of significance in the major international markets and that economies are driven by behavioral biases such Overconfidence and Optimism for the specific case of the Japanese Stock Market, Pessimism and “Spontaneous urge to action rather than inaction” for the case of French Stock Exchange and all factors comprising the “Animal Spirits” behavioral bias, including Overconfidence, Spontaneous Reaction, Opromism and Pessimism, for the cases of the U.S. the U.K. and the Swiss Stock Markets. Data and Methodology This section presents a description of the sample and the period of analysis. It illustrates also the measurement of each dependent and independent variable that is used and specifies the model to estimate. 168 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Sample Period and Stock Markets Investigated The sample covers the period spanning from 01 August 2002 to 17 November 2011. The analyses include different markets that have been affected by at least one crisis during this period. We include here different stock markets in order to investigate the impact of investors’ behavior during the periods of stability and those of excessive volatility on trading volume. The stock markets investigated are those of U.S (Nasdaq), Japan (Nikkei225), U.K. (FTSE100), France (CAC40), Switzerland (SSMI), Malaysia (MLSE), New Zealand (NZSE), Seoul (KS11), Shanghai (SCE composite), Hong Kong (HIS), Bombay (BSE) and Australia (All ordinaries). Data is available online on the yahoo Finance pages and on the website of each Stock Market. Proxy for Used Variables The investors’ beliefs change following the evolution of gains and losses across the unit of time. Ciccone (2003) uses annual earnings forecast to determine optimism. Optimism is present when the mean annual earnings forecast exceeds the corresponding actual earnings. By extension, pessimism is present when the mean annual earnings forecast is lower than the corresponding actual earnings. In our case, we consider than optimism (respectively pessimism) is present when returns exceed (decrease under) a target level. Accordingly, investors act in optimistic way when they realize gains that exceed a desired level. Let ( R   ( R ) ) the level starting from which the investor can be considered optimistic, with R the average return and  ( R ) the standard deviation of returns. In this sense, the investor is considered optimistic when he realized returns higher than ( R   ( R ) ) at the time (t-1). the investors act as optimistic when prior returns are higher than this level and in the normal way if not. Accordingly, the indicator of optimistic sentiments of the investor takes the value R( t 1) when R( t 1)  ( R   ( R ) ) and 0 otherwise. This measure was used in Dhaoui (2011). Oppositely, pessimistic belief occurs when losses decrease below the level ( R   ( R ) ) . Considering the same structure, investors are pessimistic when R( t 1)  ( R   ( R ) ) and Volume 3 Number 1 Spring 2013 169 �Abderrazak DHAOUI then the indicator of pessimism takes the value R( t 1) , and takes the value 0 if not. This measure was used in Dhaoui (2011). When returns are included in the interval ( R   ( R ) ) , ( R   ( R ) )  investors react in a spontaneous manner. The spontaneous reaction variable takes, thus, the value R(t 1) when R( t 1)  ( R   ( R ) ) , ( R   ( R ) )  and 0 otherwise. Overconfidence occurs when an investor realizes gains in previous date. Overconfidence is more pronounced once investor realizes at the time “t” a gain higher than that in time (t-1). Considering investor who will make a decision at the time “t”, he reacts in overconfidence manner if his gains in (t-1) exceed his gains in time (t-2). Oppositely when gains at time (t-1) decrease below their level in (t-2) the investor loses of confidence. The variable overconfidence will be investigated considering the impact of observed return at the time (t-1) (i.e. R( t 1) ) on the trading volume at the time “t” (i.e. Vt ). This measure was used in Boynton, Oppenheimer and Reid (2009), Ulussever, Guranyumusak and Kar (2011) and Dhaoui et al. (2012). Rational expectation supposes that investors anticipate future evolution of returns considering the realized return at the current time and adjust their anticipations by the error of anticipation of the returns for the current time. Considering the time interval  (t  1) , t  , the rational expectation for the time “t” follows this relation : RtExp  R( t 1)  E( t 1) , with RtExp represents the expected return at the time “t”, and E( t 1) represents the error of expectation at the time (t-1) that is equal to the difference between realized return and expected return at the time (t-1) : E(t 1)  R(t 1)  R(Exp t 1) . The Model To investigate the contribution of investors’ beliefs and behaviors to the explanation of the evolution of trading volume across the time we develop the following model: Vt    1 RatExpt   2OverConf t  3 Spont Re actt   4Optimismt  5 Pessimismt   t (1) With Vt represents the natural logarithm of trading volume and  t is an error term. Results of estimation will take into account the periods of excessive volatility of returns and that of stability. Excessive volatility gives an idea on the dysfunction of financial markets or more specifically financial crises and recessions. 170 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Results and Discussions To investigate the causes of financial recessions we investigate the effect of the investors’ beliefs on the variability of trading volume in periods of stability and in periods of high volatility of returns. The periods of high volatility are determined approximately following dates of crashes and recessions indicated by international financial and economic organizations (World Bank, IMF, WTO…) and the classification relies on the results of graphical analyses. Hereafter we present graphs of the evolution of returns spanning the whole period from August 2002 to November 2011 by stock market. Graph 1. 1st panel : Countries with one single period of Volatility Figure 2: Japan (Nikkei225), 2328 obs. -.1 -.1 -.05 -.05 rendement rendement 0 .05 0 .1 .05 .15 Figure 1: Mlaysia (KLSE), 2287 obs. 01 Jan 02 01 Jan 04 01 Jan 06 01 Jan 08 01 Jan 10 01 Jan 02 01 Jan 12 01 Jan 04 01 Jan 06 01 Jan 10 01 Jan 12 Figure 4: Shanghai (SSE Composite Index), 1493 obs. -.05 -.1 -.05 rendement 0 rendement 0 .05 .05 .1 Figure 3: New Zealand (NZSE50), 1757 obs. 01 Jan 08 date date 01 Jul 04 01 Jan 06 01 Jul 07 01 Jan 09 01 Jul 10 01 Jan 12 01 Jul 05 01 Jan 07 date 01 Jul 08 date 01 Jan 10 01 Jul 11 -.1 -.05 rendement 0 .05 .1 .15 Figure 5: Bombay Stock Exchange (BSE), 2072 obs. 01 Jul 03 Volume 3 Number 1 01 Jul 05 Spring 2013 01 Jul 07 date 01 Jul 09 01 Jul 11 171 �Abderrazak DHAOUI Graph 2. 2nd panel : Countries with two periods of Volatility Figure 7. Australian Securities Exchanges (AORD All Ordinaries), 2214 obs. -.2 -.1 -.1 -.05 rendement 0 rendement 0 .1 .05 .2 Figure 6. Hong Kong (HIS), 2281 obs. 01 Jan 02 01 Jan 04 01 Jan 06 01 Jan 08 01 Jan 10 01 Jul 03 01 Jan 12 01 Jul 05 01 Jul 07 date date 01 Jul 09 01 Jul 11 -.1 -.05 rendement 0 .05 .1 Figure 8. France (CAC40), 2310 obs. 01 Jul 04 01 Jan 06 01 Jul 07 01 Jan 09 01 Jul 10 01 Jan 12 date Graph 3. 3rd panel : Countries with three periods of Volatility Figure 10. U.K. (FTSE 100), 2263 obs. -.1 -.1 -.05 -.05 rendement 0 rendement 0 .05 .05 .1 .1 Figure 9. Switzerland (Swiss Market SSMI), 2255 obs. 01 Jul 02 01 Jul 02 01 Jul 05 01 Jul 08 01 Jul 05 01 Jul 08 01 Jul 11 date 01 Jul 11 date Figure 12. Seoul Composite (KS11), 2318 obs. -.1 -.1 -.05 -.05 rendement 0 rendement 0 .05 .05 .1 .1 Figure 11. U.S. (Nasdaq 100), 2318 obs. 01 Jan 02 01 Jan 02 01 Jan 04 01 Jan 06 01 Jan 08 01 Jan 10 01 Jan 12 01 Jan 04 01 Jan 06 01 Jan 08 01 Jan 10 01 Jan 12 date date 172 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Graphical analyses give an idea about the classification of the countries by periods of stability and of the high volatility of their markets. Table 1 summarizes this classification by periods of stability and high volatility. Table 1. Classification of stable vs volatile period by stock markets August 2002 to March 2003 Markets April 2003 to Jun 2007 July 2007 to September 2009 October 2009 to July 2011 After August 2011 1st Panel Japan Bombay Stock Exchange New Zealand Shanghai Malaysia Stability Stability Stability Stability Stability Volatility Volatility Volatility Volatility Volatility 2nd Panel Hong Kong France Australian Securities Exchange Stability Stability Volatility Volatility Stability Stability Volatility Volatility Stability Volatility Stability Volatility Volatility Volatility Volatility Volatility Stability Stability Stability Stability Volatility Volatility Volatility Volatility rd 3 Panel Switzerland U.K. U.S. Seoul Composite Volatility Volatility Volatility Volatility Stability Stability Stability Stability Stability Stability Stability Stability Stability According to table 1, we can classify the countries composing our sample in three panels. The first contains the Japan, Bombay, Shanghai, New Zealand and Malaysia. These countries have known a high volatility in their markets starting July 2007 to September 2009. The second panel includes three countries having two volatile periods namely Hong Kong, France and Australia. The first volatile period starts in July 2007 and finishes in September 2009. The second period of volatility starts in August 2011. And, finally, the last panel contains four countries namely Switzerland, U.K., U.S. and Seoul. These countries have known three periods of volatility. The first starts in August 2002 and finishes in March 2003. The second period of volatility plains for all the period between July 2007 and September 2009. The third period starts in August 2011. For all panels, starting and final dates are determined approximately using results in the graphics above. Volume 3 Number 1 Spring 2013 173 �Abderrazak DHAOUI Considering these characteristics of international Markets we adopt the same classification and analyze the evolution of investors’ behavior across the periods of stability and those of high volatility. This allows to determine the factors influencing the investors’ reaction. Tables 2 to 6 present results for the first panel including markets with a single volatile period covering July 2007 to September 2009. Table 2. Results for Malaysian Stock Exchange Countries Variables Rational expectation Malaysia Optimism Pessimism Spontaneous Reaction Overconfidence Cons_ R-Square Adj R-Square N. obs. 01/08/2002 to 30/06/2007 (Stability) -0,0018671 (-0,02) 3,952122 *** (10,12) -2,966418 *** (-8,85) 1,772425 *** (4,39) 5,415741 *** (2,56) 18,21633 *** (16,15) 0,1163 0,1133 1456 01/07/2007 to 30/09/2009 (High volatility) 0,029306 (0,22) 2,457814 *** (5,21) -2,085144 *** (-4,20) 1,639592 ** (2,02) 5,529746 * (1,86) 19,02779 *** (10,34) 0,1356 0,1214 309 01/10/2009 to 17/011/2011 (Stability) -0,000863 (-0,06) 2,027082 *** (4,02) -2,630279 *** (-6,38) 6,02156 * (1,73) -0,900518 (-0,66) 18,4898 *** (12,92) 0,1994 0,1918 532 ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. 174 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Table 3. Results for Japanese Stock Exchange Countries 01/08/2002 to 30/06/2007 (Stability) 01/07/2007 to 30/09/2009 (High volatility) 01/10/2009 to 17/011/2011 (Stability) -0,0146175 (-0,18) -0,00048082 (-0,61) 0,0017469 (0,16) Optimism 5,496744 (4,19)*** 3,987197 (5,96)*** 6,365698 (4,64)*** Pessimism -6,383355 (-5,41)*** -3,651358 (-6,36)*** -4,947251 (-3,80)*** Spontaneous Reaction -3,443485 *** (-2,75) 1,487952 (1,11) 0,5675622 (0,43) Overconfidence 1,781031 *** (-2,56) -0,18953 (-0,49) 0,4319584 (0,59) 12,52128 (13,15)*** 11,80451 (11,29)*** 11,80701 (11,17) 0,2457 0,2427 1245 0,1119 0,1038 549 0,1602 0,1519 514 Variables Japan Rational expectation Cons_ R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. Table 4. Results for New Ealand Stock Exchange New Zealand Countries 01/08/2002 to 30/06/2007 (Stability) 01/07/2007 to 30/09/2009 (High volatility) 01/10/2009 to 17/011/2011 (Stability) Rational expectation -0,0648184 (-0,706) 0,0371711 (0,74) 0,0073104 (0,22) Optimism 9,17813 ** (2,02) 10,88856 *** (4,35) 9,682107 *** (4,69) Pessimism -12,42906 *** (-2,68) -3,853524 * (-1,71) -5,591399 *** (-3,00) Spontaneous Reaction 0,3652308 (0,08) 1,419302 (0,29) 0,5953874 (0,22) Overconfidence -0,3954135 (-0,15) -1,033097 (-0,72) -1,184377 (-1,01) 17,06697 (10,31) 17,17036 (9,21) 17,15519 *** (16,78) 0,2164 0,2103 652 0,3571 0,3514 566 0,1677 0,1653 1757 Variables Cons_ R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. Volume 3 Number 1 Spring 2013 175 �Abderrazak DHAOUI Table 5. Results for Shanghai Stock Exchange Countries 01/08/2002 to 30/06/2007 (Stability) 01/07/2007 to 30/09/2009 (High volatility) 01/10/2009 to 17/011/2011 (Stability) 0,1174147 (0,079) 0,0000294 (0,02) 0,0000666 (0,96) Optimism 10,9254 *** (5,19) 0,3974354 *** (2,70) 0,0021573 (0,24) Pessimism -6,389313 *** (-3,6) -0,1794908 (-1,38) -0,0021634 (-0,33) Spontaneous Reaction 7,528852 *** (2,87) 0,5108541 ** (2,02) 0,0055034 (0,81) -1,677286 (-0,83) 0,3199599 *** (3,88) 0,0007502 (0,18) 21,8397 *** (70,35) 22,1649 (89,75) 22,18064 (3,8) 0,4959 0,4898 416 0,4359 0,4307 549 0,3618 0,3556 523 Variables Shanghai Rational expectation Overconfidence Cons_ R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. Table 6. Results for Bombay Stock Exchange Bombay Countries 01/08/2002 to 30/06/2007 (Stability) 01/07/2007 to 30/09/2009 (High volatility) 01/10/2009 to 17/011/2011 (Stability) Rational expectation 0,0001376 (0,01) -0,0232592 (-0,51) 0,0063136 (0,32) Optimism 5,975804 (2,60)*** 2,754436 (1,96)** 10,53096 (5,59)*** Pessimism -6,315796 (-2,78)*** -7,391564 (-5,12)*** -11,76311 (-6,89)*** Spontaneous Reaction 1,315978 (0,73) -1,754886 (-0,56) -1,575617 (-0,91) Overconfidence -0,2895931 (-0,024) 0,221533 (0,26) 0,1298517 (0,14) Cons_ 9,65496 *** (65,42) 10,12245 *** (37,98) 9,843536 *** (66,67) 0,2642 0,2573 538 0,4983 0,4937 550 0,7266 0,7252 983 Variables R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. 176 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Results in tables 2 to 6 indicate that the hypothesis of rational expectation loses of significance to explain the variability of trading volume in both: periods of stability and the period of high volatility in the five stock markets composing this sub-sample. Oppositely, the animal spirits behavior of investors explains about the whole the variability of trading volume in the same way in periods of stability and in the period of excessive volatile trading in the case of Malaysian, Bombay and Japanese Markets. In fact, the reaction of the optimistic investors influences positively the trading volume. Oppositely, the reaction of the pessimistic investors impacts negatively the trading volume. Except the case of the Market of Shanghai, for all the other markets (Japan, Malaysia, Bombay and New Zealand) all the components of animal spirits variable impact in about a similar way the trading volume even in periods of stability or in that of high volatility. Thus, in the case of these stock markets we cannot attribute the high variability of trading volume in the period of non-stability to the decisions made by investors with the animal spirits reaction. Tables 7 to 9 give results for countries having known two periods of high volatility. The first takes place spanning from July 2007 to September 2009 and the second starts in August 2011. Table 7. Results for Hong Kong Stock Exchange Hong Kong Countries 01/08/2002 to 30/06/2007 (Stability) 01/07/2007 to 30/09/2009 (High volatility) 01/10/2009 to 31/07/2011 (Stability) 01/08/2011 to 17/011/2011 (High volatility) Rational expectation 0,0094716 (0,38) -0,0086295 (-0,32) -0,110444 (-1,27) 0,0569733 (0,48) Optimism 9,727746 (2,76)*** 8,921321 (11,49)*** 9,428507 (3,79)*** 7,884296 (2,62)*** Pessimism -1,411207 (-3,96)*** -8,101631 (-10,51)*** -13,29175 (-6,22)*** -6,516842 (-2,52)*** Spontaneous Reaction 7,963819 (3,07)*** 4,095233 (2,07)** 0,6893569 (0,37) -0,3024628 (-0,06) Overconfidence 4,144081 (2,33)** 1,599998 (3,38)*** -0,4723748 (-0,40) 0,529921 (0,31) Cons_ 19,67071 (10,57)*** 21,42976 (13,60)*** 21,10563 (14,04)*** 21,36374 (43,87)*** 0,2956 0,2926 1192 0,2573 0,2505 555 0,1101 0,1000 447 0,1165 0,0613 86 Variables R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. Volume 3 Number 1 Spring 2013 177 �Abderrazak DHAOUI Table 8. Results for Australian Stock Exchange Australia Countries Variables 01/08/2002 to 30/06/2007 (Stability) 01/07/2007 to 30/09/2009 (High volatility) 01/10/2009 to 31/07/2011 (Stability) 01/08/2011 to 17/011/2011 (High volatility) Rational expectation -0,0733917** (-1,98) -0,0141237 (-0,41) -0,008164 (-0,53) 0,0058698 (0,18) Optimism 12,60348*** (3,52) 3,956039* (1,90) 7,341521*** (2,66) 3,530575 (1,05) Pessimism -12,88308*** (-4,03) -1,486838 (-0,82) -10,31233*** (-4,24) -4,137054 (-1,30) Spontaneous Reaction 1,081162 (0,47) 4,417508 (1,04) 1,79318 (0,64) 1,420481** (2,00) Overconfidence -1,995823 (-1,21) -0,6302036 (-0,54) -1,346957 (-0,92) -1,872936 (-0,98) 20,17996*** (18,17) 20,6959*** (84,77) 20,89099 (13,52) 20,83000*** (50,92) 0,3181 0,315 1094 0,3295 0,3236 572 0,5447 0,2396 456 0,6179 0,5949 89 Cons_ R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. Table 9. Results for French Stock Exchange Countries 01/08/2002 to 30/06/2007 (Stability) 01/07/2007 to 30/09/2009 (High volatility) 01/10/2009 to 31/07/2011 (Stability) 01/08/2011 to 17/011/2011 (High volatility) 0,0021435 (0,02) 0,0009854 (0,09) -0,0084168 (-0,83) -0,0144636 (-0,378) Optimism 1,382417*** (3,78) 7,443982*** (7,27) 6,406972*** (2,75) 5,60802*** (2,49) Pessimism -2,007958*** (-6,00) -8,564161*** (-8,79) -13,11779 (-6,52) -7,076897*** (-3,64) Spontaneous Reaction -1,344369 (-0,66) -0,6155619 (-0,31) -1,952723 (-0,86) -6,716509 (-1,32) Overconfidence -1,794604 (-1,14) -0,7888018 (-1,26) -2,153704* (-1,83) -3,137049*** (-2,56) 18,43785*** (13,92) 18,77479*** (12,72) 18,64237*** (10,73) 18,93855*** (44,66) 0,4708 0,467 698 0,1748 0,1675 574 0,1058 0,0961 468 0,2636 0,2132 79 Variables France Rational expectation Cons_ R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. 178 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Results in tables 7 to 9 indicate for the three countries (France, Hong Kong and Australia) that optimism and pessimism hypotheses as components of animal spirits bias explain the economy works in both: periods of stability and periods of high volatility. For the specific case of Hong Kong, results show also that the reactions of overconfident investors and those with spontaneous reaction impact in their turn the economy works. The hypothesis of rational expectation remain non-significant for the three countries even the period is of stability or of high volatility. Results for countries with three volatile periods are given in tables 10 to 13. Table 10. Results for Swiss Stock Exchange Countries Variables Switzerland Rational expectation 01/08/2002 01/04/2003 01/07/2007 01/10/2009 01/08/2011 to 31/03/2003 to 30/06/2007 to 30/09/2009 to 31/07/2011 to 17/11/2011 (High volatility) (Stability) (High volatility) (Stability) (High volatility) -0,1111289 (-0,55) -0,0126377 (-0,51) 0,0073701 (0,71) 0,0127327 (1,56) -0,0034019 (-0,19) Optimism 8,386031*** (2,44) 6,39788** (2,25) 8,499868*** (6,87) 6,928711** (2,09) 9,748404*** (2,91) Pessimism -1,886762 (-0,59) -6,534211*** (-6,04) Spontaneous Reaction 4,607594 (0,61) 0,7302884 (0,34) -3,699637 (-1,42) -1,872912 (-0,72) 2,218586 (0,31) Overconfidence 1,456902 (0,67) -1,798946 -1,26 -1,260576* (-1,67) -3,097999* (-1,90) -4,712409*** (-2,48) Cons_ 17,69276 (35,37) 17,80328*** (14,19) 18,17439*** (11,68) 17,77902*** (11,37) 17,8621*** (38,28) 0,1164 0,0559 79 0,3831 0,3802 1071 0,1629 0,1554 564 0,1134 0,1037 463 0,2936 0,2446 78 R-Square Adj R-Square N. obs. -9,597526*** -8,147291*** -11,218586*** (-8,05) (-6,57) (-3,76) ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. Volume 3 Number 1 Spring 2013 179 �Abderrazak DHAOUI Table 11. Results for UK Stock Exchange UK Countries Variables Rational expectation 01/08/2002 01/04/2003 01/07/2007 01/10/2009 01/08/2011 to 31/03/2003 to 30/06/2007 to 30/09/2009 to 31/07/2011 to 17/11/2011 (High volatility) (Stability) (High volatility) (Stability) (High volatility) 0,0019037 (0,02) 0,0065213 (0,39) -0,0014575 (-0,07) 0,0027181 (0,12) -0,138409 (-0,14) Optimism 2,977028 (0,59) 3,993008* (1,69) 3,729751*** (3,15) 6,913669*** (2,62) 6,150827*** (2,34) Pessimism -4,354747 (-0,84) -8,801088*** (-3,89) -5,386519*** -4,992221*** (-4,85) (-5,84) -8,58405*** (-3,60) Spontaneous Reaction -11,50274 (-1,09) -1,253282 (-0,85) -2,563612 (-1,06) -2,953955 (-1,08) 4,72253 (0,88) Overconfidence -3,349596 (-1,02) -1,881756* (-1,73) -1,403448** (-1,96) -4,08298*** (-2,76) -3,493217*** (-2,42) Cons_ 21,07296 (30,97) 0,4505 0,4143 82 21,17952*** (25,71) 0,196 0,1922 1073 20,94948*** (13,09) 0,361 0,3553 570 20,59363*** (12,03) 0,1016 0,0917 460 20,57805** (56,537) 0,2585 0,207 78 R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. Table 12. Results for US Stock Exchange US Countries Variables 01/08/2002 01/04/2003 01/07/2007 01/10/2009 01/08/2011 to 31/03/2003 to 30/06/2007 to 30/09/2009 to 31/07/2011 to 17/11/2011 (High volatility) (Stability) (High volatility) (Stability) (High volatility) Rational expectation -0,0013339 (-0,05) 0,0060562 (0,34) 0,0027018 (0,19) -0,0149435 (-0,30) 0,023649 (0,91) Optimism 4,77477*** (4,30) 2,655937** (1,96) 2,548728*** (3,82) 1,6657 (0,67) 4,279347*** (2,29) Pessimism -1,711587 (-1,31) -3,733872*** (-2,6) 9,967913*** (3,62) -1,079388 (-0,90) Overconfidence 0,4343431 (0,61) -0,4189386 (-0,56) Cons_ 21,06314 (97,67) 21,28201*** (23,93) 21,46282*** (21,67) 21,44617*** (13,21) 21,38062*** (76,58) 0,1862 0,1561 141 0,2117 0,2078 1027 0, 4599 0,4554 611 0,3575 0,3504 461 0,3421 0,2965 78 Spontaneous Reaction R-Square Adj R-Square N. obs. -2,644234*** -8,066696*** -7,355007*** (-4,23) (-3,72) (-4,85) -0,2475651 (-0,18) -5,27086** (-2,25) 2,132501 (0,65) -0,9743913*** -3,109979*** -2,874493*** (-2,42) (-2,38) (-2,93) ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. 180 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Table 13. Results for Seoul Stock Exchange Countries Variables Seoul Rational expectation 01/08/2002 01/04/2003 01/07/2007 01/10/2009 01/08/2011 to 31/03/2003 to 30/06/2007 to 30/09/2009 to 31/07/2011 to 17/11/2011 (High volatility) (Stability) (High volatility) (Stability) (High volatility) -0,0500564 (-0,35) 0,006156 (0,50) -0,0014951 (-0,12) 0,0019769 (0,34) 0,000056 (0,09) Optimism 6,323745*** (2,55) 5,3764027*** (2,78) 4,455644*** (2,51) 0,2132635 (0,10) 0,1409836 (0,09) Pessimism 3,448822 (1,54) -2,934043 (-1,51) -0,0555116 (-0,04) -2,642974* (-1,66) -2,506756* (-1,80) Spontaneous Reaction -2,143304 (-0,52) 3,009507 (1,36) 2,603327 (0,82) -0,3265051 (-0,24) -0,9799284 (-0,31) Overconfidence 3,455121*** (2,40) 2,152928* (1,88) 2,143484** (2,11) 0,348115 (0,38) -0,6763232 (-0,76) Cons_ 13,54845*** (39,96) 12,80747*** (78,72) 12,90968*** (52,13) 12,75659*** (12,68) 12,82902*** (48,73) 0,3976 0,3787 165 0,2213 0,2176 1054 0,1874 0,1801 559 0,1636 0,1542 453 0,1653 0,1125 85 R-Square Adj R-Square N. obs. ***: Significant at the level 1%, **: Significant at the level 5%, *: Significant at the level 10%. Results in tables 10 to 13 indicate even for countries having three periods of volatility that the hypothesis of rational expectations loses of significance and fails to explain the evolution of trading volume. Sentiments and beliefs drive, however, the economy. In fact, optimism affects significantly and positively the trading volumes whereas pessimism presents significant and negative influences. The weight of impacts is similar even the period is of stability or characterized by a high volatility. Taken together results for the whole sample including countries with one single volatile period, those with two periods and those with three volatile periods tend toward the same conclusions. The rationality fails to explain how the economy really works; sentiments, beliefs and animal spirits drive, however, the economy. These results are consistent with the prediction of Keynes (1936) who argues that all decisions to do something constitutes most probably a consequence of only animal spirits reaction of the decision-makers and not a result of rational thinking based on statics and models. The results confirm and spur the prediction of Akerlof and Shiller (2009) who plead in favor of the fact that “Human Psychology Drives the Economy”. Considering these results we cannot conclude moreover that Human Psychology constitutes the only factor which causes definitely the dysfunction of the economy. We Volume 3 Number 1 Spring 2013 181 �Abderrazak DHAOUI can conclude, however, that sentiments, beliefs or animal spirits can be considered among the main causes of crises once there is no institutional and governmental control. Markets trade ordinary and the accumulation of biases caused by the reaction of non-rational investors induces across the time abnormal losses or abnormal gains. Non-rational investors (those with animal spirits reaction) continue their trading even when markets are not healthy and this behavior lunches the first signs of dysfunction of the financial markets. When institutions and government organizations delay their intervention the impact on the trading can be exacerbated. Conclusion The causes of financial recessions and economy dysfunction has come to the forefront of attention of academics, analysts, practitioners, investors, government and all who are interested in financial markets and this probably because of the problems which have been revealed in the economic sphere. Non-rational expectation, investor sentiments, behavioral biases, animal spirits are all factors considered to explain the dysfunction of the economy once the hypothesis of rationality loses of power to explain the excessive volatility and the abnormal gains and losses in the financial markets. Using a sample of 12 international markets over a period of analysis spanning August 2002 to the mid-September 2011, results shown that economy works is explained in terms of animal spirits and that the hypothesis of rational expectation loses of significance and this for all the markets. After classification of the analysis by periods of stability and volatility, results indicate that beliefs and animal spirits drive the economies whatever the period is of stability or of high volatility. Results cannot serve, however, to conclude what factor affects the variety of trading across the periods of high volatility opposite to that during the periods of stability. They allow, however, to understand only what factors can explain how the economy works. Financial markets trade in non-rational way. Investors’ belief and their behavioral bias conduct their decision-making process and induce therefore a cumulative dysfunction on financial markets taking the form of repeated cycles. 182 Journal of Economic and Social Studies �Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 References Akerlof, G. A., & Shiller, R. J. (2009). Animal Spirits. Princeton University Press. Barberis, N., Shleifer, A., & Vishny, R. (1998). A model of investor sentiment. Journal of Financial Economics, 49, 307-343. Boynton, W., Oppenheimer, H. R., & Reid, S.F. (2009). Japanese day-of-the-week patterns: New results. Global Finance Journal, 20, 1-12. Ciccone, S. (2003). Does Analyst Optimism About Future Earnings Distort Stock Prices?. The Journal of Behavioral Finance, 4, (2), 59-64. Daniel, K., Hirshleifer, D., & Subrahmanyam, A. (1998). Investor psychology and security market under- and overreactions. Journal of Finance, 53, 1839-1886. DeBondt, W., & Thaler, R. H. (1987). Further evidence on investor overreaction and stock market seasonality. Journal of Finance, 42, 557-581. Dhaoui, A. (2011). What Does Matters in Economy Today: Between Rationality and Animal Spirits. SSRN Working Paper Series, Electronic copy available at: http://ssrn.com/abstract=1962778. Dhaoui, A., Farhani, R., & Garfatta. R. (2012). Stock return and trading volume distribution across the day-of-the-week: evidence from Japanese stock market. Journal of Economic and Social Studies, 2, (1), 51-67. Guldberg, H. H. (2010). The Changing Economic Paradigm. Background paper 3, Climate Change and the Florida Keys, July 21, Socioeconomic Research and Monitoring Program Florida Keys National Marine Sanctuary (FKNMS) National Atmospheric and Oceanic Administration (NOAA). Hakkio, C. S., & Keeton, W. R. (2009). Financial Stress: What Is It, How Can It Be Measured, and Why Does It Matter?. Federal Reserve Bank of KANSAS City, Economic Review, Second Quarterly, 5-50. Haruvy, E., Stahl, D. E., & Wilson, P. W. (1999). Evidence for optimistic and pessimistic behavior in normal-form games. Economics Letters, 63, 255-259. Keynes, J. M. (1936). The General Theory of Employment Interest and Money. McMillan London. Lavoie, M. (2010). Are we all Keynesians?. Brazilian Journal of Political Economy, 30, (2), 189-200. Otten, W. (1989). Optimism. University of Amesterdam. Piroscă, G. (2011). Economic Crises and the Complexity of Animal Spirits Modeling. Theoretical and Applied Economics, 18, (2), 153-170. Posner, R. A. (2009). How I became a Keynesian. The New Republic, 23 September. Ulussever, T., Guranyumusak, I., & Kar, M. (2011). The Day-of-the-Week Effect in the Saudi Stock Exchange: A Non Linear Garch Analysis. Journal of Economic and Social Studies, 1, (1), January, 9-23. Weinstein, N. D. (1989). Optimistic biases about personal risk, Science, 246, 1232-1233. Volume 3 Number 1 Spring 2013 183 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2380 Title A name given to the resource Animal Spirits and Trading Volume in International Financial Markets between 2002 and 2011 Author Author DHAOUI, Abderrazak Abstract A summary of the resource. The change in trading volume and returns and the dysfunction of the economy and more specifically of financial markets has been increasingly attracting attention of researchers, analysts, practitioners, institutions as well as government organizations. This paper investigates the factors that are able to explain how financial markets work. Testing the rational expectation hypothesis and different components of animal spirits including investors’ beliefs and their behavioral biases, results show that economy is driven by animal spirits and not by rational behavior. Considering the classification of the sample by periods of stability and periods of excessive volatility, results incite to think that financial markets work in terms of economic cycles. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-03-10 Keywords Keywords. Article PeerReviewed HG Finance https://omeka.ibu.edu.ba/files/original/ca377db7072a3039713acbd9eb6af7fc.docx 51dd4e9e0097edaed39d78a0f4460037 https://omeka.ibu.edu.ba/files/original/bdd2a0f7533dcbcaf3f397b525075b5b.pdf 69ee51a587e0ee2a8aa60a4a6f510d6b PDF Text Text Implications of Cognitive Developmental Theories for Teaching English as a Foreign Language Alma Žero University of Sarajevo / Sarajevo, Bosnia and Herzegovina Key words: EFL, cognitive theories, language acquisition, teaching ABSTRACT One of the most fascinating aspects of human development is language acquisition and it has attracted the attention of linguists and psychologists for generations. Researchers all over the world discuss the particular developmental sequences and describe what it is that learners actually learn throughout their language development. In this paper, we attempt to focus on how this outstanding development takes place and what the implications are for teaching English as a foreign language (EFL), especially to younger and adolescent learners. We explore the role and importance of well-known language theories, including Piaget, Vygotsky, Bruner and Skinner; and we transfer their ideas to the EFL classroom. Furthermore, we conducted a research comprised of questionnaires and observations of classes in NGO Creativus and elementary school Izet Šabić in Sarajevo, Bosnia and Herzegovina, so as to gain insight in particular theoretical uses when working with the mentioned ELL groups. The results show that the most appealing theory for teachers of younger language learners are Bruner’s scaffolding and Skinner’s behaviorism, as well as that teachers do try to incorporate theories in their everyday practice and that every one of the theories offers plenty of possibilities and suggestions for teaching EFL. Classroom activities and teacher decisions can create, or limit, the learners’ opportunities for learning EFL. For that reason, we aim and hope to help teachers make their teaching more effective by attending to the mental world of the learner and by understanding how theory works in EFL practice. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1697 Title A name given to the resource Implications of Cognitive Developmental Theories for Teaching English as a Foreign Language Author Author ŽERO, Alma Abstract A summary of the resource. Key words: EFL, cognitive theories, language acquisition, teaching ABSTRACT One of the most fascinating aspects of human development is language acquisition and it has attracted the attention of linguists and psychologists for generations. Researchers all over the world discuss the particular developmental sequences and describe what it is that learners actually learn throughout their language development. In this paper, we attempt to focus on how this outstanding development takes place and what the implications are for teaching English as a foreign language (EFL), especially to younger and adolescent learners. We explore the role and importance of well-known language theories, including Piaget, Vygotsky, Bruner and Skinner; and we transfer their ideas to the EFL classroom. Furthermore, we conducted a research comprised of questionnaires and observations of classes in NGO Creativus and elementary school Izet Šabić in Sarajevo, Bosnia and Herzegovina, so as to gain insight in particular theoretical uses when working with the mentioned ELL groups. The results show that the most appealing theory for teachers of younger language learners are Bruner’s scaffolding and Skinner’s behaviorism, as well as that teachers do try to incorporate theories in their everyday practice and that every one of the theories offers plenty of possibilities and suggestions for teaching EFL. Classroom activities and teacher decisions can create, or limit, the learners’ opportunities for learning EFL. For that reason, we aim and hope to help teachers make their teaching more effective by attending to the mental world of the learner and by understanding how theory works in EFL practice. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/181f70aad01948b24ff4196c9e8269a5.docx 685982c69244787bd3c287c21f213225 https://omeka.ibu.edu.ba/files/original/2448d930f750d71b4bc51ead0750215a.pdf 0d3e7c62e6165c46e2870c60f560f88a PDF Text Text Cultural Perception as a Part of Cultural Competence Alma Čović-Filipović Universitiy of Sarajevo / Sarajevo, Bosnia and Herzegovina Key words: topoi, argumentation, discourse analysis, Austrio-Hungarian monarchy, Bosnia and Herzegovina ABSTRACT Intercultural competence has become very prominent after the occurrence of the EU and globalization in general. However, one should not forget that intercultural competence is formed not only by contacts that are modern, but also by those that occurred much earlier among cultures, so that its roots must be also investigated from the historical perspective. This paper wants to show the acquisition of intercultural competence at its very onset, ie, from a historical perspective. Views that are created during the cultural contact have shaped the attitudes and determined perceptions which are an important part of intercultural competence. Cultures involved in the investigation are the Austro-Hungarian monarchy and Bosnia and Herzegovina. In order to investigate this contact, the paper analyzes articles in daily press at the time of the Austro-Hungarian rule in Bosnia and Herzegovina. The method used in this paper is based on the analyse of the argumentative forms or patterns, ie topoi by which expressions that implicitly or explicitly refer to the contact of these two cultures can be extracted from the text. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1696 Title A name given to the resource Cultural Perception as a Part of Cultural Competence Author Author ČOVIĆ-FILIPOVIĆ, Alma Abstract A summary of the resource. Key words: topoi, argumentation, discourse analysis, Austrio-Hungarian monarchy, Bosnia and Herzegovina ABSTRACT Intercultural competence has become very prominent after the occurrence of the EU and globalization in general. However, one should not forget that intercultural competence is formed not only by contacts that are modern, but also by those that occurred much earlier among cultures, so that its roots must be also investigated from the historical perspective. This paper wants to show the acquisition of intercultural competence at its very onset, ie, from a historical perspective. Views that are created during the cultural contact have shaped the attitudes and determined perceptions which are an important part of intercultural competence. Cultures involved in the investigation are the Austro-Hungarian monarchy and Bosnia and Herzegovina. In order to investigate this contact, the paper analyzes articles in daily press at the time of the Austro-Hungarian rule in Bosnia and Herzegovina. The method used in this paper is based on the analyse of the argumentative forms or patterns, ie topoi by which expressions that implicitly or explicitly refer to the contact of these two cultures can be extracted from the text. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/46f1c65f2753feee11334a4cab45d901.docx 9d0e70765dc7bf3c09c8b84237eaf57f https://omeka.ibu.edu.ba/files/original/a729a9ae04aa552c95800fcf743ed89a.pdf 8edccd36d52dc311d4e9897f1211d200 PDF Text Text Formative Feedback Tools to Enhance Learning and Teaching Aylin Yurdacan Istanbul Sehir University/ Istanbul, Turkey Key words: formative feedback, self-directed learning ABSTRACT The paper will mainly focus on what formative feedback involves, how learners and teachers can benefit from it and what possible formative feedback tools can be employed. Formative feedback provides hands-on experience for learners to reflect on how their learning process is going on and thus creating an opportunity for teachers to realize how effective their teaching is. Teachers taking action according to the feedback they receive from their students not only creates a positive learning atmosphere but also boosts learners' confidence as they feel they have a say in the learning and teaching process. After a brief introduction to formative feedback, some fundamental principles will be presented. Then the motive, means and timing of formative feedback will be presented. And finally some formative feedback tools will be shared with the audience. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1740 Title A name given to the resource Formative Feedback Tools to Enhance Learning and Teaching Author Author YURDACAN, Aylin Abstract A summary of the resource. Key words: formative feedback, self-directed learning ABSTRACT The paper will mainly focus on what formative feedback involves, how learners and teachers can benefit from it and what possible formative feedback tools can be employed. Formative feedback provides hands-on experience for learners to reflect on how their learning process is going on and thus creating an opportunity for teachers to realize how effective their teaching is. Teachers taking action according to the feedback they receive from their students not only creates a positive learning atmosphere but also boosts learners' confidence as they feel they have a say in the learning and teaching process. After a brief introduction to formative feedback, some fundamental principles will be presented. Then the motive, means and timing of formative feedback will be presented. And finally some formative feedback tools will be shared with the audience. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/5a7ce8964d08db85a4e8ed90fa347aad.docx 4568d81ecb433651ce9a2fd42ae3c16b https://omeka.ibu.edu.ba/files/original/d6f93d1935c69c81cdf5103529bef5de.pdf 522cbf702a23f1964ae2b20ee2e9c3f8 PDF Text Text TÜRKÇE İLE İLİŞKİSİ Muammer YÜCAL Ardahan Üniversitesi, Türk Dili ve Edebiyatı Ana Bilim Dalı, Ardahan / Türkiye Anahtar Kelimeler: Saha (Yakut) Türkçesi, kök, ses değişikleri. ÖZET Saha (Yakut) Türkçesi, Kuzey Sibirya Türk Lehçeleri içerisinde değerlendirilmektedir. Bu lehçe ana Türkçeden erken bir tarihte ayrıldığı ve coğrafya olarak da uzakta kaldığı için, genel Türkçeden çok uzaklaşmıştır. Bu nedenle birçok bilim insanı Saha (Yakut) Türkçesi’ni ayrı ve bağımsız bir dil olarak ele almaktadır. Saha (Yakut) Türkçesi, lehçe olarak “z”li ve “ş”li (Zetasizm) sesleri kullanmaktadır. Kullanılan bu sesler sözcüklerin kök ve ek yapılarını etkilemiştir. Bunun sonucu olarak, sözcüklerin köklerindeki seslerin özelliklerine göre (Sedalı, Sedasız); ekler değişik biçimde görülür. Bir sözcüğün kökündeki son sesin özelliğine bağlı olarak ekler; 8, 16 bazen de 20 değişik biçimde bu köke eklenir. Bu çalışmada sözcüklerin köklerindeki son sesin özelliği dikkate alınarak, eklerin ses değişmeleri ele alınmıştır. Böylelikle Eski Türkçenin sözcük köklerindeki seslerinin özellikleri de düşünülerek; bu seslerin nasıl korunduğu ve kökteki son sese göre sözcüğün aldığı ekin nasıl bir değişime uğradığı tespit edilmeye çalışılmıştır. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1959 Title A name given to the resource TÜRKÇE İLE İLİŞKİSİ Author Author YUCAL, Mammer Abstract A summary of the resource. Anahtar Kelimeler: Saha (Yakut) Türkçesi, kök, ses değişikleri. ÖZET Saha (Yakut) Türkçesi, Kuzey Sibirya Türk Lehçeleri içerisinde değerlendirilmektedir. Bu lehçe ana Türkçeden erken bir tarihte ayrıldığı ve coğrafya olarak da uzakta kaldığı için, genel Türkçeden çok uzaklaşmıştır. Bu nedenle birçok bilim insanı Saha (Yakut) Türkçesi’ni ayrı ve bağımsız bir dil olarak ele almaktadır. Saha (Yakut) Türkçesi, lehçe olarak “z”li ve “ş”li (Zetasizm) sesleri kullanmaktadır. Kullanılan bu sesler sözcüklerin kök ve ek yapılarını etkilemiştir. Bunun sonucu olarak, sözcüklerin köklerindeki seslerin özelliklerine göre (Sedalı, Sedasız); ekler değişik biçimde görülür. Bir sözcüğün kökündeki son sesin özelliğine bağlı olarak ekler; 8, 16 bazen de 20 değişik biçimde bu köke eklenir. Bu çalışmada sözcüklerin köklerindeki son sesin özelliği dikkate alınarak, eklerin ses değişmeleri ele alınmıştır. Böylelikle Eski Türkçenin sözcük köklerindeki seslerinin özellikleri de düşünülerek; bu seslerin nasıl korunduğu ve kökteki son sese göre sözcüğün aldığı ekin nasıl bir değişime uğradığı tespit edilmeye çalışılmıştır. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/404fdafbf5c23af9de9a543f691f33f7.docx 20b08bdf9418ad7c62b3e882a23369ca https://omeka.ibu.edu.ba/files/original/70d59c127c5cb029f5bff514594d16b1.pdf e418dfd0a1fdedf53c770c91c47a186d PDF Text Text Views of Teachers on the Courses of Turkish as a First Language in Western Germany Cemal Yildiz Marmara University/ Istanbul, Turkey Key Words: Turkish as a First Language in Germany, Mother Tongue, Foreign Language, Teaching of Turkish. ABSTRACT The aim of this research is to investigate the views of the teachers of Turkish immigrant students in Germany towards the course of Turkish Language. The research has been carried out in accordance with the relational screening model during the summer of 2011. The population of the research was composed of teachers of immigrant students of Turkish origin between the ages of 11 and 18, who receive education at the 5th to 12th grades in various states of Germany (Baden-Württemberg, Lower Saxony, Bremen, Hamburg and Berlin). The sample included 92 teachers. In the study, two questionnaires prepared by the researcher were used in order to identify certain demographic features of the teachers concerned, as well as their views towards the course of Turkish Language. The first dimension of the questionnaire consisting of two dimensions includes items investigating personal background regarding the independent variables of the research. Apart from items investigating information related to teachers, in the questionnaires there is another dimension with open-ended items under 3 sub-dimensions entitled as Aims of Teaching Turkish to Students, Teaching and Using Turkish Activities, and Problems Encountered in Turkish Teaching and Suggestions. The analysis of the data was conducted through SPSS for Windows 15.0 package software. The statements found interesting were selected and interpreted by categorizing the responses to the questionnaire under the titles mentioned above. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1726 Title A name given to the resource Views of Teachers on the Courses of Turkish as a First Language in Western Germany Author Author YILDIZ, Cemal Abstract A summary of the resource. Key Words: Turkish as a First Language in Germany, Mother Tongue, Foreign Language, Teaching of Turkish. ABSTRACT The aim of this research is to investigate the views of the teachers of Turkish immigrant students in Germany towards the course of Turkish Language. The research has been carried out in accordance with the relational screening model during the summer of 2011. The population of the research was composed of teachers of immigrant students of Turkish origin between the ages of 11 and 18, who receive education at the 5th to 12th grades in various states of Germany (Baden-Württemberg, Lower Saxony, Bremen, Hamburg and Berlin). The sample included 92 teachers. In the study, two questionnaires prepared by the researcher were used in order to identify certain demographic features of the teachers concerned, as well as their views towards the course of Turkish Language. The first dimension of the questionnaire consisting of two dimensions includes items investigating personal background regarding the independent variables of the research. Apart from items investigating information related to teachers, in the questionnaires there is another dimension with open-ended items under 3 sub-dimensions entitled as Aims of Teaching Turkish to Students, Teaching and Using Turkish Activities, and Problems Encountered in Turkish Teaching and Suggestions. The analysis of the data was conducted through SPSS for Windows 15.0 package software. The statements found interesting were selected and interpreted by categorizing the responses to the questionnaire under the titles mentioned above. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/786abe4ab1345f8b34775f9907326b61.docx 192e01fc37ad0c79c937f29ee14e60e6 https://omeka.ibu.edu.ba/files/original/954001bad70b56bf88e4c09d84b1b47a.pdf 34a2fc0903a192af157ba8f2cf1e119d PDF Text Text Wording and Discourse of Conservative Female Columnists Kübra Güran Yiğitbaşı Marmara University/ Istanbul, Turkey Key words: Discourse analysis,Female Columnists, rhetorical statements,columnists of styles,Turkish press. ABSTRACT Along with the improvements in new media and communication technologies, the press that finds a place for itself in the definition of traditional media maintains its importance with detailed news analysis and exclusive news. Like other forms of media, the printed media also tries to reach its target audience in various ways. It can do this by bringing up news and also through columnists who establish a close and intimate relationship between the paper and its readers, reflecting the newspaper’s identity. In general, columnists in the Turkish press are the people who comment on and assess recent developments based on their own philosophy of life and their basic references. Through AKP (The Justice and Development Party) that has been in power since 2002, female columnists with conservative and islamic lifestyles have become more visible in the Turkish press, particularly with their different wording and discourses. While the majority of these authors have been writing in conservative newspapers, such as Yeni Şafak and Star, others have chosen secular newspapers, such as Taraf or Haberturk. Sibel Eraslan, Elif Çakır, and Halime Kökçe from Star and Fatma Barbarosoğlu, Hilal Kaplan and Özlem Albayrak from Yeni Şafak can be shown as examples of the first group of writers. On the other hand, Nihal Bengisu Karaca from Habertürk and Hidayet Tuksal from Taraf are the authors of the latter group. In this study, a month-long articles of these authors will be examined in the axis of the "woman" issue. The ways the authors approach the “woman” issue as well as the common and different aspects of their styles and their rhetorical statements will be tried to be revealed. Through a discourse analysis, the statements they make in their writing pieces and the subtle messages and meanings behind their texts will be exposed. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1836 Title A name given to the resource Wording and Discourse of Conservative Female Columnists Author Author YIGITBASI, Kübra Güran Abstract A summary of the resource. Key words: Discourse analysis,Female Columnists, rhetorical statements,columnists of styles,Turkish press. ABSTRACT Along with the improvements in new media and communication technologies, the press that finds a place for itself in the definition of traditional media maintains its importance with detailed news analysis and exclusive news. Like other forms of media, the printed media also tries to reach its target audience in various ways. It can do this by bringing up news and also through columnists who establish a close and intimate relationship between the paper and its readers, reflecting the newspaper’s identity. In general, columnists in the Turkish press are the people who comment on and assess recent developments based on their own philosophy of life and their basic references. Through AKP (The Justice and Development Party) that has been in power since 2002, female columnists with conservative and islamic lifestyles have become more visible in the Turkish press, particularly with their different wording and discourses. While the majority of these authors have been writing in conservative newspapers, such as Yeni Şafak and Star, others have chosen secular newspapers, such as Taraf or Haberturk. Sibel Eraslan, Elif Çakır, and Halime Kökçe from Star and Fatma Barbarosoğlu, Hilal Kaplan and Özlem Albayrak from Yeni Şafak can be shown as examples of the first group of writers. On the other hand, Nihal Bengisu Karaca from Habertürk and Hidayet Tuksal from Taraf are the authors of the latter group. In this study, a month-long articles of these authors will be examined in the axis of the "woman" issue. The ways the authors approach the “woman” issue as well as the common and different aspects of their styles and their rhetorical statements will be tried to be revealed. Through a discourse analysis, the statements they make in their writing pieces and the subtle messages and meanings behind their texts will be exposed. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/02253898eb184548ed8467fc3931773b.docx 3c24a026727737c6810ba997eabff84c https://omeka.ibu.edu.ba/files/original/668bccac218d78b3f17b80e462e0e2bb.pdf 2ee4bd768e2aea9b782d19370bd9a49a PDF Text Text Harold Pinter and Orhan Pamuk: Two Radical Voices of our Century İbrahim Yerebakan Recep Tayyip Erdogan University/ Rize, Turkey Key words: Harold Pinter, Orhan Pamuk, politics, human rights, Turkey, western societies ABSTRACT Introduction: It is interesting to note that Pinter’s association with Orhan Pamuk , Turkey’s only Nobel laureate, goes back to the mid 1980s when he went to Turkey with Arthur Miller in order to investigate the mistreatment and imprisonment of the Turkish writers, intellectuals, trade union and political leaders and allegations of human rights abuses during the military regime on behalf of International PEN. During that fact-finding mission, they were introduced to and guided around Istanbul by that young and unknown novelist called Orhan Pamuk. It is also by sheer coincidence that Harold Pinter received his Nobel Prize for literature in 2005 just the year before Orhan Pamuk won the same award in 2006. In case of these outspoken cultural figures, it was always the search for human dignity and human respect and freedom of the individual that brought them into relentless conflict with the authority. Both of them are friends of the oppressed and enemies of the totalitarian regimes, East and West. Both spoke out on behalf of the oppressed and vigorously criticised the policies of their respective political administrations. Objectives: This analysis is intended to demonstrate some certain parallels in the political stance and political activism of the above-mentioned writers and to find out important points of contact in their political discourses that give us most of the same concern. It is also part of the contention of this analysis to consider how these internationally acclaimed writers are seen from their respective countries , who we assume, are more honoured everywhere in the world than in their own societies. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1784 Title A name given to the resource Harold Pinter and Orhan Pamuk: Two Radical Voices of our Century Author Author YEREBAKAN, İbrahim Abstract A summary of the resource. Key words: Harold Pinter, Orhan Pamuk, politics, human rights, Turkey, western societies ABSTRACT Introduction: It is interesting to note that Pinter’s association with Orhan Pamuk , Turkey’s only Nobel laureate, goes back to the mid 1980s when he went to Turkey with Arthur Miller in order to investigate the mistreatment and imprisonment of the Turkish writers, intellectuals, trade union and political leaders and allegations of human rights abuses during the military regime on behalf of International PEN. During that fact-finding mission, they were introduced to and guided around Istanbul by that young and unknown novelist called Orhan Pamuk. It is also by sheer coincidence that Harold Pinter received his Nobel Prize for literature in 2005 just the year before Orhan Pamuk won the same award in 2006. In case of these outspoken cultural figures, it was always the search for human dignity and human respect and freedom of the individual that brought them into relentless conflict with the authority. Both of them are friends of the oppressed and enemies of the totalitarian regimes, East and West. Both spoke out on behalf of the oppressed and vigorously criticised the policies of their respective political administrations. Objectives: This analysis is intended to demonstrate some certain parallels in the political stance and political activism of the above-mentioned writers and to find out important points of contact in their political discourses that give us most of the same concern. It is also part of the contention of this analysis to consider how these internationally acclaimed writers are seen from their respective countries , who we assume, are more honoured everywhere in the world than in their own societies. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/b1915455c651c5215f634ddc0283dfa5.docx c86f58e78620385706ec6eb71503f0b4 https://omeka.ibu.edu.ba/files/original/7dea743a420781771911d3b7632e9f09.pdf ff0227d879c7408ac2d187b72391dad8 PDF Text Text An Examination Of The Typological Features Of Turkish Oktay Yağız & Muhsine Börekçi Atatürk University/ Erzurum, Turkey Key words: Language, Turkish, Language typology,linguistics, applied linguistics ABSTRACT In this study, Turkish is examined in terms of language typologies and the language opportunities to the user of Turkish. Moreover, the easy and difficult characteristics of Turkish are aimed to explore. While attempting to investigate, description and comparison methods were used and the typological features of Turkish were examined in terms of the theory of language richness and perfection. That a language is a magical and perfect system is widely acknowledged by thinkers and linguists. Another agreement among the linguists is that languages resemble each other through certain features, therefore some gene! ralizations can be established. Given the typical instances of agglutinative languages, Turkish is suggested as a developing language of science, education and art, according to “Language Perfection Criteria” and the arguments are thought to provide useful insights to Turkish learners, material designers, language researchers and practitioners. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1910 Title A name given to the resource An Examination Of The Typological Features Of Turkish Author Author YAGIZ, Oktay BOREKCI, Muhsine Abstract A summary of the resource. Key words: Language, Turkish, Language typology,linguistics, applied linguistics ABSTRACT In this study, Turkish is examined in terms of language typologies and the language opportunities to the user of Turkish. Moreover, the easy and difficult characteristics of Turkish are aimed to explore. While attempting to investigate, description and comparison methods were used and the typological features of Turkish were examined in terms of the theory of language richness and perfection. That a language is a magical and perfect system is widely acknowledged by thinkers and linguists. Another agreement among the linguists is that languages resemble each other through certain features, therefore some gene! ralizations can be established. Given the typical instances of agglutinative languages, Turkish is suggested as a developing language of science, education and art, according to “Language Perfection Criteria” and the arguments are thought to provide useful insights to Turkish learners, material designers, language researchers and practitioners. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/d9064b0bacd8c35e672a29e27c38e086.docx 1f83a9de6587b591f359eba0e15ab0c7 https://omeka.ibu.edu.ba/files/original/d5f4e14155edc3cff44808288d2c76bb.pdf 883c3dbe42193cc721143055fb3afcb7 PDF Text Text Exploring Task-Based Pbl in an Elective Chinese Language Beginner Course in a Danish Context Youjin Ruan, Xiangyun DU ABSTRACT Chinese as an Asian language is still very new to most institutions in Denmark, it is facing both opportunities and challenges in a Danish context. Department of Culture and Global Studies at Aalborg University (AAU) has been offering different elective language courses, such as English, French, German and Spanish, and started to include Chinese language course which is taught by the Chinese teachers from Confucius Institute for Innovation and Learning at Aalborg University’s (CI) from 2011. In autumn semester 2012, the number of students in Chinese classes broke record, 174 students chose to study Chinese, which made Chinese the biggest language program at the university. And the students are from different studies, such as health, engineering, computer science, humanities and others. However, most of foreign language courses in Department of Culture and Global Studies are still facing a high rate of drop-out problem. We agree with Gardner R. C. that students’ motivation plays an important role in the teaching and learning process. What may affect Danish student’s motivation in the foreign language learning? How to meet Danish student’s expectation in a foreign language course? How to motivate them to learn a new foreign language, such as Chinese, by using alternative teaching methods? How to motivate them by integrating language and cultural elements in the language teaching and learning? How to maintain the quality of foreign language teaching and learning with a big amount of participants? To develop and sustain the Chinese language and culture teaching in AAU, the researchers and teachers from CI have been developing a student-centred teaching and learning method Task-based PBL (Xiangyun DU & Mads Jakob Kirkebæk, 2012) in this course, by means of a qualitative research approach weare investigatingthis course and try to find the answers to the questions mentioned above. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1818 Title A name given to the resource Exploring Task-Based Pbl in an Elective Chinese Language Beginner Course in a Danish Context Author Author XIANGYUN DU, Youjin Ruan Abstract A summary of the resource. Chinese as an Asian language is still very new to most institutions in Denmark, it is facing both opportunities and challenges in a Danish context. Department of Culture and Global Studies at Aalborg University (AAU) has been offering different elective language courses, such as English, French, German and Spanish, and started to include Chinese language course which is taught by the Chinese teachers from Confucius Institute for Innovation and Learning at Aalborg University’s (CI) from 2011. In autumn semester 2012, the number of students in Chinese classes broke record, 174 students chose to study Chinese, which made Chinese the biggest language program at the university. And the students are from different studies, such as health, engineering, computer science, humanities and others. However, most of foreign language courses in Department of Culture and Global Studies are still facing a high rate of drop-out problem. We agree with Gardner R. C. that students’ motivation plays an important role in the teaching and learning process. What may affect Danish student’s motivation in the foreign language learning? How to meet Danish student’s expectation in a foreign language course? How to motivate them to learn a new foreign language, such as Chinese, by using alternative teaching methods? How to motivate them by integrating language and cultural elements in the language teaching and learning? How to maintain the quality of foreign language teaching and learning with a big amount of participants? To develop and sustain the Chinese language and culture teaching in AAU, the researchers and teachers from CI have been developing a student-centred teaching and learning method Task-based PBL (Xiangyun DU & Mads Jakob Kirkebæk, 2012) in this course, by means of a qualitative research approach weare investigatingthis course and try to find the answers to the questions mentioned above. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed