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Today, with a growing emphasis on sustainable economic development, corporate environmental, social and governance (ESG) performance is attracting increasing attention and favor from investors. This triggers a question: can good ESG performance of listed companies mitigate the "up and down" of the stock market by drawing investor attention? This paper utilizes the data from China's A-share listed companies from 2011 to 2020, with investor attention as a mediating variable, to explore how the ESG performance of listed companies influences abnormal stock price volatility. The findings suggest that stronger ESG performance of listed companies significantly reduces abnormal stock price volatility, in which investor attention plays a partial mediating role. This paper confirms the robustness of the findings through multiple robustness and endogeneity tests. Heterogeneity analysis reveals that listed companies with good ESG performance during the growth period are more likely to significantly mitigate abnormal stock price volatility. Similarly, firms that maintain commendable ESG performance in bear markets significantly reduce abnormal stock price volatility. These findings enrich the theoretical research on the impact of ESG performance on abnormal stock price volatility, provide empirical evidence for listed companies to emphasize ESG investment and encourage investors to consider ESG ratings. Additionally, the study provides a new perspective for government agencies to utilize corporate ESG performance to maintain the sound development of the capital market. [ABSTRACT FROM AUTHOR]

Purpose: This study analyzes how political-economic events have affected the Brazilian capital market over 13 years by evaluating the abnormal returns of the five most liquid stocks (Top-5). Originality/value: This research proceeds from previous studies by analyzing various political-economic events that impacted, to some extent, the prices of companies listed on the Brazilian Stock Exchange over 13 years. Considering both favorable and opposing evidence to the efficient market hypothesis (EMH), this study provides an original and robust test to evaluate market efficiency, considering various events and companies. Design/methodology/approach: We used the event study methodology to measure the impact of each event on stock prices by using the day before and after the event analyzed. We performed capital asset pricing model (CAPM) estimations with 110 observations before the event to assess abnormal returns. To assess the research hypotheses, we used the average abnormal return test around the event (Window – 1.1). Findings: We found that the five major companies in the Brazilian stock market were efficient in the EMH semi-strong form test despite 13 years of extreme events. Their returns did not change significantly after the events, differentiating themselves from studies that question market efficiency. Therefore, market participants should not expect abnormal returns in similar events. [ABSTRACT FROM AUTHOR]

This study examines the impact of firms' earnings quality on stock price synchronicity, considering the foreign equity ownership to moderate such a relationship. This study argues that firms' earnings quality is firm-specific information that can enhance the stock price synchronicity in the market. The sample used is ASX200 firms in 2017–2019 period, excluding firms in Finance and Utility sectors. The data are collected from the databases FactSet and Morningstar. Using pooled regression analysis, this study shows that out of three market-based earnings quality attributes, timeliness significantly reduces information asymmetry, enhances transparency by impounding more firm-specific information in prices, and ultimately mitigates pricing errors in trading, hence lower stock price synchronicity. It supports prior studies showing that market impound the loss quicky. Meanwhile, conservatism and relevance show insignificant results, emphasizing the superiority of timeliness over other market-based earnings quality in the developed capital market. We discover that foreign equity ownership is not regarded as firm-specific information that reduce the stock price synchronicity. As a moderating variable, the foreign ownership level decreases the impact of timeliness on stock price synchronicity. [ABSTRACT FROM AUTHOR]

This study examines the supervision of notaries by the Financial Services Authority in Indonesia's capital market, its implementation, and proposes alternative solutions to strengthen the concept. It provides a comprehensive examination of current supervisory practices, highlighting the effectiveness and challenges of regulatory supervision. The research also proposes alternatives to strengthening the supervisory framework, potentially influencing policy improvements and enhancing governance and integrity of notarial practices. [ABSTRACT FROM AUTHOR]

AbstractSMEs play a crucial role for inclusive development, but their growth is often hampered by lacking access to finance. This paper explores whether capital markets can be harnessed to foster SME finance. Given the negligible use of market-based financing by SMEs, it is analysed to what extent capital market development indirectly alleviates SMEs’ financing constraints by improving their access to loans. Thus, the study builds on the theoretical model by Song and Thakor (2010), which consolidated the view that markets and banks are complementary and co-evolve. Using a modification of the analysis framework by Rajan and Zingales (1998) for 68,712 firm-level observations from 50 mostly low- and middle-income countries for 2006-2019, it empirically investigates the central prediction of Song and Thakor (2010) that capital market development is associated with an increase in bank lending, in particular, towards smaller and riskier firms. I find a positive and significant effect; in support of Song and Thakor (2010), the effect runs through increased capital market usage by financial institutions and expanded loan availability. The findings underline that markets and banks co-evolve and that the most important contribution of capital markets to SME finance is their indirect effect on bank lending and loan availability. [ABSTRACT FROM AUTHOR]

Purpose: This research seeks to identify the key factors influencing the quality of financial information within the context of globalisation and complex commercial transactions.Motivation: In today's globalised environment, trust in financial information is crucial for maintaining market stability and efficiency. Understanding these influencing factors is paramount for sound decision-making by firm managers.Design/Methodology/Approach: A Systematic Literature Review methodology is employed. The investigation examines 50 articles from the SCOPUS and Web of Science databases to identify the key determinants affecting financial information quality.Main findings: The investigation identifies critical factors at firm, country and international levels. Firm-level factors include corporate governance practices, incentives for transparent disclosure and bank monitoring. Country-level influences stem from regulatory frameworks and firm-agent dynamics. Finally, international factors involve competition within capital markets and the degree of a firm's internationalisation.Practical implications: The research provides key recommendations for both firm managers and regulatory bodies. Managers are advised to adopt transparent policies, implement rigorous audit processes and foster a culture of integrity and accuracy. Additionally, strengthening regulatory bodies and supervisory entities is crucial for effectively monitoring financial practices and penalising misconduct.Novelty/Contribution: This research represents a pioneering effort to systematically synthesise factors affecting financial information quality. It provides a comprehensive framework for academics and practitioners, promoting sustainable economic growth and informed decision-making. [ABSTRACT FROM AUTHOR]

This article examines the adaptive market hypothesis in the five most important Latin American stock indices. To that end, we apply three versions of the variance ratio test, as well as the Brock- Dechert-Scheinkman test for nonlinear predictability. Additionally, we perform the Dominguez- Lobato and generalized spectral tests to evaluate the Martingale difference hypothesis. Moreover, we consider salient news related to the plausible market inefficiencies detected by these four tests. Finally, we apply a GARCH-M model to assess the risk-return relationship through time. Our results suggest that the predictability of stock returns varies over time. Furthermore, the efficiency in each market behaves differently over time. All in all, the analyzed emerging market indices satisfy the adaptive market hypothesis, given the switching behavior between periods of efficiencies and inefficiencies, since the adaptive market hypothesis suggests that market efficiency and market anomalies might coexist in capital markets. [ABSTRACT FROM AUTHOR]

This paper presents a critical examination of recent Polish takeover regulation from a perspective of evolution of capital market law in Poland. The study is based on both legal analysis and an empirical and statistical approach. Firstly, as a starting point, it briefly describes the mandatory bid rule and Takeover Bids Directive as well as the development of early Polish provisions. Secondly, the paper elaborates on the normative model of takeovers, which was in force until 2022. Using a case study and a comprehensive statistical examination of all mandatory bids carried out between 2008 and 2017, it shows how the unusual and incorrect legislative structure of two thresholds of control (33% and 66% of votes) allowed the actual circumvention of mandatory bids, to the detriment of minority shareholders. The paper also describes political considerations and political influences on the legislative process, which led to the failure of the 2014–2015 takeover law proposal. The core of the paper is devoted to the current takeover rules. Statistical research of ownership structures in Poland shows that the threshold of control set at 50% of votes is undoubtedly too high, which entails risks to investor protection that may arise from the adopted model. Based on research on significant holdings in Polish listed companies, the paper further elaborates on the notion of control over a public company and proposes a regulatory utility function to determine the desired threshold of control. This leads to the conclusion that the optimal regulatory threshold of control, given the characteristics of the Polish capital market, is 30% of votes. [ABSTRACT FROM AUTHOR]

This study offers a comprehensive theoretical and empirical analysis of a fundamentals-based investment criterion (HSBC's Rating to Economic Profit – REP). By employing a large sample of US-listed firms over a 12-year time-period and conducting univariate, multivariate and portfolio analyses, we provide robust empirical results that support the ability of REP to explain contemporaneous stock market valuations, justify financial analysts' target prices, and predict one-year ahead stock returns. Through content analysis of selected financial analysts' equity research reports, we also provide some descriptive evidence of the usefulness of accrual accounting numbers over dividends for valuation purposes. To the best of our knowledge, this is the first academic study that offers a comprehensive analysis of REP as a value-based stock screening method that should be of interest to market-based accounting researchers, valuation educators, and capital market participants. [ABSTRACT FROM AUTHOR]

The goal/purpose/objective of the inquiry is to empirically investigate the impact of capital structure (CS) on firm performance (FP), from an emerging capital market perspective, Ghana Stock Exchange (GSE). Using financial data from 36 listed-firms on the GSE, spanning 2010–2020, and employing a robust dynamic panel System of Generalized Method of Moment (GMM), this inquiry examined CS-FP-nexuses. Results revealed that whilst total-debt-to-total-equity-ratio, total-debt-to-total-assets-ratio, long-term-debt-ratio, and financial risk exhibited negative associations with FP; total-equity-to-total-assets-ratio, short-term-debt-ratio, cash conversion cycle, total assets turnover, tangibility, sales-growth, firm size, and firm age revealed positive associations with FP, suggesting that highly leveraged-firms are susceptible to insolvency due to high debt-financing cost with worsened macroeconomic instability effect via increased sensitivity of the economy to shocks. Recommendations were made to policymakers to revamp Ghana's capital market to encourage equity-investment and also entreat listed-firms to improve upon their profitability and utilize more retained earnings as an internal-financing source to minimize the interest cost on debt-financing. By utilizing data on all the 36 firms listed on the GSE, an uncharted/unexploited path, this current inquiry is one of the few studies that has contributed to the literature on capital structure-performance nexus in Ghana, an emerging West African country south of the Sahara. [ABSTRACT FROM AUTHOR]

Here, in our paper, there will be about foreign direct investments (FDI) and their pair, the direct investments abroad (DIA), both viewed as a single general flow. That is why our view will(first) be world-wide level before going to individual regions, countries and capital sections, as in detail. Our whole series of studies upon FDI was inspired by the UNCTAD’s “World Investments Report” number of 2016 (WIR 2016). It publishes a data table containing foreign direct investments (FDI) and direct investments abroad (DIA) amounts of all the 215 such reporting countries in each year of the 1990-2015 interval. Our results were: (1) the FDI-DIA capital movement is enough important world-wide in absolute numbers, but just a minority of the total of 215 countries (about 35) keeps the capital majority on both FDI&DIA flow senses; (2) the international invested capital divides into “cooperation capital” and “long-way flows” according to their -- projected, versus not – later comeback to the issuer(country); the previous flows stay proper to neighbouring and/or traditional investment partner countries; the latter involve the Third World and great international investor countries. Countries group into 16 multi-country regions – i.e., some of them (6 countries) stay out of regions as naturally, e.g. laying on islands, while important actually is here their role played for FDI-DIA in the international context; regions might be of three types according to FDI&DIA behaviour;(3)moreover, countries and regions group into international capital sections, as autonomous capital markets, be it as another general trend: there are three of them resulting – “Eurasia”, “The US & partners” and “Japan in Pacific” with 55-56%, 37-38% and 7-8% as respectively for their parts in total world capital directly invested during the 1990-2015 study reference time interval (a quarter of century). [ABSTRACT FROM AUTHOR]

Following the entry into force of the Asset Management Framework, approved by Decree-Law 27/2023 of 28 April ("AMF") and a public consultation process that included many contributions, after a long wait by all agents in the relevant markets, on 1 January 2024, CMVM Regulation 7/2023 of 29 December ("AMFR") came into force to regulate the AMF. Following the unification of the framework applicable to collective investment - formerly the General Collective Investment Organizations Framework ("GCIOF") - and to risk capital - formerly the Legal Risk Capital Framework - operated by the AMF, the AMFR regulates this new legal framework, replacing the main regulations previously applicable to both activities: CMVM Regulations 2/2015 of 17 July and 3/2015 of 3 November. Similar to what happens with the AMF, the AMFR also follows more closely the previous collective investment framework - although with some new features, as explained below - thus requiring a greater effort from players in the risk capital market to adapt to the new framework. To accommodate for management companies and respective collective investment organisations ("CIO") who need to adapt to the AMFR, the regulation provides a 180-day term from its entry into force to adapt. As the preamble of the AMFR states, this regulation seeks, as does the AMF, to increase "regulatory solutions in terms of simplification and proportionality, with a view to promoting the competitiveness and efficiency of the national market, as well as investor protection". In this context, several different types of regulatory changes are recommended. As these regulations are known for their complex and granular regulation of collective investment activities, our analysis focuses on the specific changes to the applicable framework that we believe could more significantly affect CIOs in practice - a concept that includes the former "venture capital funds", now characterised as alternative venture capital investment bodies. [ABSTRACT FROM AUTHOR]

Criminal practices in the capital market are commonly known by the terminology insider trading, a long-standing crime that is not well-known to the public. Insider trading constitutes a legal violation as well as an ethical breach that can pose serious risks to market integrity and harm investors who do not have specific information access. This journal will explore the legal protection and enforcement framework that explains the Indonesian legal framework governing transactions in the capital market in an effort to protect the public from insider trading. Legal protection includes the enforcement of provisions found in laws, regulations, and supervisory mechanisms applied by financial authorities, which is essential to create a fair and efficient market. Therefore, understanding the effectiveness of existing laws and enforcement of rules is crucial to protecting the public from insider trading crimes. This journal is expected to provide knowledge to enhance and develop legal science, particularly related to the analysis of insider trading law enforcement in the capital market in Indonesia. This journal is hoped to provide input and recommendations for authorities and stakeholders involved in providing legal protection to the public for the enforcement of laws in accordance with the provisions of the Indonesian Capital Market Law. [ABSTRACT FROM AUTHOR]

Although a rich academic literature examines the use of fake news by foreign actors for political manipulation, there is limited research on potential foreign intervention in capital markets. To address this gap, we construct a comprehensive database of (negative) fake news regarding U.S. firms by scraping prominent fact-checking sites. We identify the accounts that spread the news on Twitter (now X) and use machine-learning techniques to infer the geographic locations of these fake news spreaders. Our analysis reveals that corporate fake news is more likely than corporate non-fake news to be spread by foreign accounts. At the country level, corporate fake news is more likely to originate from African and Middle Eastern countries and tends to increase during periods of high geopolitical tension. At the firm level, firms operating in uncertain information environments and strategic industries are more likely to be targeted by foreign accounts. Overall, our findings provide initial evidence of foreign-originating misinformation in capital markets and thus have important policy implications. [ABSTRACT FROM AUTHOR]

Limited resident's participation in the stock market has become a key constraint to the capital market development. Utilizing the 2019 China Household Financial Survey (CHFS) data, our paper designs probit models to examine the peer effects of residents' stock market participation and explore the intermediary mechanisms with a multiple intermediary model. We find that: (1) Resident involvement in stock market decision-making exhibits significant peer effects. (2) Heterogeneity analysis reveals that males and rural residents display more pronounced peer effects than females and urban residents. Additionally, middle-aged residents demonstrate more potent peer effects than their younger and older counterparts, with the intensity of peer effects correlating with education levels. (3)We observe that the peer effects of market participation operate by altering economic expectations and enhancing residents' financial literacy. (4) Further investigation establishes that individuals engaging in stock market investments manifest peer effects when deciding whether to diversify their stock portfolio. This study holds reference value for analyzing the impact of social interaction on financial behaviors and regulating individuals' financial conduct. [ABSTRACT FROM AUTHOR]

This study aims to identify and analyze the modus operandi used in money laundering in the capital market trading sector. The research method used is a normative education method that looks at matters related to law, both formal and non-formal law and analyzes primary data and secondary data. The results of money laundering research in the capital market can occur by the placement, layering, and integration process through the capital market. As a result, money laundering in the capital market is growing rapidly, especially with the use of the capital market as a means of laundering money proceeds of crimes such as corruption. Securities buying and selling activities in the capital market are difficult to supervise because of their complexity and actors can practice market manipulation with the Placement, Layering, and Integration methods. Although regulations related to money laundering in the capital market are not yet firm, supervisory and law enforcement agencies have their own regulations. To minimize this crime, good cooperation between authorized institutions is needed. [ABSTRACT FROM AUTHOR]

An increasing number of Chinese companies are strengthening their commitment to corporate social responsibility (CSR) by reporting their carbon emission reductions. Research suggests that such voluntary environmental disclosures can reduce information asymmetry, decrease the cost of capital, and thus enhance firm value. However, a significant research gap exists because this evidence mainly derives from developed countries, with limited consideration given to emerging countries, where the capital market often lacks robust informational content. To fill this research gap, we endeavor to explore the firm-value effects of the disclosures and the magnitude of carbon reduction in China, the largest emerging market. By manually collecting data on carbon emission reductions from the CSR reports of Chinese listed companies from 2008 to 2013, we employ the balance sheet valuation model and ordinary least squares regression to investigate the firm-value effects of the disclosures and the magnitude of carbon emission reductions. The empirical results show that firm value is positively associated with not only voluntary carbon emission reduction disclosures, but also the magnitude of carbon emission reductions. In our sample, for every additional ton of carbon emission reduction, firm value increases by approximately 340 yuan (equivalent to 44 euros or 52 US dollars). We also find that the firm-value effects of carbon emission reductions are more pronounced in high-pollution industries than those in low-pollution industries. Further channel tests reveal that on average, agency problems, as measured by selling, general, and administrative expenses, are lower in firms that disclose carbon emission reduction information than those that do not. In addition, firms with carbon emission reduction disclosures can obtain more green subsidies than those without such disclosures. To mitigate climate risk, firms should proactively engage in carbon emission reductions, which can potentially receive a positive recognition from the capital market. Our study also provides valuable insights for regulators in terms of establishing and enhancing carbon accounting standards to encourage corporate involvement in carbon reductions. [ABSTRACT FROM AUTHOR]

Climate risk represents an increasingly vital issue to countries, companies, and institutional investors, making it a reality but not a distant threat to humanity. Considering the effects of climate risks on firms’ financial indices and financing options, the study investigates whether climate risk is priced by the capital markets of South Africa. The study used reported carbon emissions as a measure of climate risk of 81 listed companies in the Johannesburg Stock Exchange from 2011 to 2020 to examine whether climate risk is considered and priced by the South Africa capital market. Data was sourced from DataStream database- a global financial and macroeconomic time-series database providing data on equities, stock market indices, currencies, company fundamentals, fixed income securities, and key economic indicators. We used the two-step system Generalized Method of Moments estimation technique that copes with endogeneity concerns to corroborate the effects of climate risk on cost of capital and capital structure. We find that climate risk is priced in both cost of debt capital and cost of equity capital. Specifically, we find that an increase in a firm’s exposure to climate risk increases the cost associated with issuing debt and equity capital. We also find that climate risk exposure decreases the debt-equity ratio. Additionally, the study showed that firm size, leverage ratio, capitalization, profitability, and turnover affect both cost of capital and capital structure of listed firms. The study concludes that climate risk is priced in cost of financing in the capital market of South Africa. The study recommends that firms should invest in installing ecofriendly machinery that aligns with changing market expectations in order to reduce their carbon emissions. The study therefore highlights the need for companies to proactively assess and manage climate risks, incorporate climate considerations into their strategic decision-making, and enhance their resilience to climate-related challenges. [ABSTRACT FROM AUTHOR]

Since the 1980s–90s, Venture capital has grown to be widely considered as an effective source of funding for creative operations besides playing a pivotal role in the development of economies. Focusing primarily on sixteen Emerging economies of Asia-Pacific, the research sheds light on the determinants of venture capital, over the period 2006–2021, coinciding with the peak of venture capital activity in this region. By employing Panel regression analysis, incorporating fixed and random effects, and complementing the findings with Pairwise Granger Causality tests, this scholarly work offers a comprehensive understanding of the distributional and operational characteristics of the Asia-Pacific venture capital market. Moreover, it provides valuable insights for entrepreneurs and policymakers on how to efficiently foster venture capital activities in emergent economies. [ABSTRACT FROM AUTHOR]

"Islamic Finance in Africa: The Prospects for Sustainable Development" is a book that explores the intersection of Islamic finance and sustainability in the context of Sub-Saharan Africa. The book primarily focuses on the legal, regulatory, and governance aspects of Islamic finance, as well as commercial and social finance. It discusses the challenges facing the development of Islamic finance in Africa, including weak Shariah governance standards and the absence of green sukuk. The book offers case studies and experiments, but some chapters lack updated information and fail to address important events such as the COVID-19 pandemic and the Ebola outbreak. While the book may not be suitable as a textbook, it can provide inspiration for fieldwork and identify gaps in the literature. [Extracted from the article]

Financial capital is currently being heralded for its potential to provide social and environmental transformations. This paper provides an in-depth case study of the Seychelles Blue Bond, highlighting the state's (fiscal and planning) capacities as central in mediating the future rents and value production when channelling thematic bond proceeds. Even as the Blue Bonds tapped into private capital markets and bond proceeds were intended to provide leverage for private businesses, this operation was contingent on complex economic and environmental planning by the state. Using literature on fictitious capital, rent and the role of the state in governing natural resources, this paper shows how the state needed to govern investment flows and its environmental conditions simultaneously in the case of the Seychelles Blue Bonds. By examining how the state tries to govern environments and finance in tandem, this paper contributes to geographical research on public fiscal policy, financialisation and environmental governance. [ABSTRACT FROM AUTHOR]

The progressive integration of Tunisia into the international capital market implies deep institutional and social transformations as well as the positioning of the country in the semi-periphery of the capitalist world-economy. From the mid-19th and during the twentieth century, the growing Tunisia's debt paved the way to a compulsory financial administration of the North African country by 1870. Likewise, this process favoured the development of a capitalist class, whose origins were both exogenous and endogenous, drawing its power from doing business with the global financial élites. Thus, we assist to the birth of a capitalist class with local and international interests, also called afterward compradors. Adopting an original comparative approach, this article shows that the integration of a country into the global economy, mainly when occurring through a growing foreign debt, paves the way not only to the birth of a local capitalist class drawing its power from the circulation of capital but also to the permanent positioning of the country in the semi-periphery of the capitalist world-economy. The access to the international capital markets, according to the rules of the controlling powers and elites, makes the indebted country less independent in its economic policy choices, thus modifying its class structure in favour of the new capitalist elites, and their interests. [ABSTRACT FROM AUTHOR]

Capital markets are essential for a country's development. However, the effort to develop a sustainable capital market may be challenged by many uncertainties, such as pandemics, politics, and investor behavior. This study aims to unveil the future of Indonesia's capital market and provide implications and options for stakeholders to develop a best-practice capital market. The scenario personarrative method, including cluster analysis, is used in this research as it can complement each other by signifying options to different types of investors. Data were gathered from interviews with 25 experts and a questionnaire survey of 438 respondents. With an analysis emphasizing the government's political direction and regulator ability, four transformative scenarios were constructed: (1) thin bull in the pastureland, (2) facing Torero in the bullring, (3) train the circus bull, and (4) world-champion bull. Eight personas were described, each with unique characteristics. Finally, 32 behavioral narratives were constructed based on the four scenarios and eight personas with the options provided. These results benefit stakeholders when deciding on acting in Indonesia's capital market. It is recommended that stakeholders carefully consider ensuring that Indonesia's capital market can achieve the world champion bull scenario in 2030. [ABSTRACT FROM AUTHOR]

Research background: Conventional CAPM is a well-known and tested theory on various capital markets. It was also repeatedly rejected as a model of capital pricing. This article proposes a different approach to both CAPM testing and the use of other risk measures. In addition, research is global, including emerging countries. Purpose of the article: This paper investigates the standard CAPM, and this model is based on higher moments of the return distribution for the global emerging market. In addition, this paper aims to compare the conventional and downside CAPM versions using the beta coefficient and co-moments. Methods: Contrary to the classical unconditional tests for the risk premium, conditional relationships are also estimated considering the market portfolio condition. Moreover, the studies considered conventional and downside approaches to risk measures. The cross-sectional regressions are based on the Fama-MacBeth (F-M) procedure and panel models. Findings & value added: The findings contribute to the debate on whether beta coefficient and higher order co-moments in conventional and downside approaches can explain the crosssectional emerging indices returns. The unconditional models using all measures do not significantly describe the cross-sectional volatility of returns. The cross-sectional regressions in up and down-market based on both the classic F-M procedure and panel models show that the beta and co-kurtosis risk premium is significant and depends on market conditions. The risk premium for co-skewness is not valid, and the direction of the relationships is opposite than expected. Research also demonstrates that the test results of CAPM relationships are not robust to the presence of outliers and shocks resulting from the Covid-19 pandemic in the context of risk-return space. Research provides strong support for the importance of downside risk in the context of standard CAPM and, above all, higher co-moments. [ABSTRACT FROM AUTHOR]

Vietnam experienced drastic political and economic disruptions in 2023. The anti-corruption campaign reached the very top level of government. Ongoing prosecutions and new arrests targeted the business sector. Vietnam successfully navigated an unprecedented leadership change and restored stability to the political system, emboldening the public security forces in the process. International relations were marked by successful upgrades of ties to both the US and China. However, a shaky domestic capital market, shrinking global demand, and the side effects of anti-corruption drives resulted in a significant economic slowdown. [ABSTRACT FROM AUTHOR]

The article discusses the use of legal commentaries and their potential problems using the example of capital market law. It is pointed out that not all commentaries meet the standards of commentary and some can even lead to legal problems. A concrete example is given in connection with the supervisory authority BaFin. The article also shows how the author of a commentary on BaFin is involved in both legislation and the concrete application of laws, which can lead to a potential conflict. It is argued that an authority should not grant itself expanded powers and that the rule of law must be preserved. The article criticizes the commentary of A/S/M (Stock, Debt, and Market Law) on certain paragraphs of the Securities Trading Act (WpHG) regarding the powers of the Federal Financial Supervisory Authority (BaFin). It is argued that the commentary leads to a leveling of intervention thresholds and an expansion of BaFin's scope of action. The article calls for more transparency and a strict separation of powers in the application and control of the law. [Extracted from the article]

The phenomenon of stock split is a corporate action to increase the number of shares outstanding in the market with the aim of making the stock price more affordable for investors. This practice is often carried out by company management to enhance stock liquidity and attract investor interest without necessarily increasing net income. However, although Stock Splits are generally considered a positive policy, some studies indicate that in some cases, Stock Splits can be exploited for insider trading activities, especially in markets with weak regulations or emerging markets. The aim of this research is to find out whether there are indicators of insider trading from stock split policies based on similar behavior in capital markets where capital market regulations are still not well regulated ( emerging markets ). By using the event study method, this research did not find any indication of insider trading because there was no cumulative abnormal return in the positive direction before the stock split was executed. By using multiple regression analysis, this research confirms that there is no indication of insider trading which is influenced by the level of state ownership, small company asset size and the tendency to split shares with a high split ratio as has been tested by previous research. [ABSTRACT FROM AUTHOR]

In recent years, with the continuous development of the capital market and intelligent internet of things (IIoTs) technologies, investors have focused more on IIoTs enterprises' stocks. Since the stocks of IIoTs enterprises have the characteristics of heavy capital flows and high stock price volatility, the effective prediction of IIoTs stock price changes plays an extremely important role in improving investment returns and controlling investment risks. According to the above characteristics, our model takes stock trend fluctuations and time series indicator changes into consideration and comprehensively captures IIoTs stock information from both the temporal domain and the spatial domain. Specifically, the proposed model is a dual-view model that incorporates selected trading indicators to predict the closing prices of stocks. In the first view, an RNN model is designed to enlarge the receptive field of the model. In the second view, we introduce an attention mechanism to extract the influences of individual stock trends on the forecasting target. To verify the validity of this prediction method, we compare it with six other stock prediction methods. The results show that on the Ping An (601318) and IFLYTEK (002230) datasets, our method achieves the best results, that is, the lowest RMSE values. [ABSTRACT FROM AUTHOR]

Digital transformation is an emerging development opportunity for enterprises in the digital economy and comprehensively reflects the application of digital technology to production, operation, and management strategies. This study used data on A-share listed enterprises in Shanghai and Shenzhen from 2007 to 2022 to examine the relationship between the digital transformation of enterprises and information efficiency of the capital market. Findings revealed that digital transformation can improve the information efficiency of the capital market and that environmental uncertainty plays a more significant regulatory role. The greater the environmental uncertainty, the more enterprises with a high degree of digital transformation can promote the information efficiency of the capital market. Additional analysis showed that the promotional effect of digital transformation on the information efficiency of the capital market is better for non-state-owned enterprises and small and medium-sized enterprises. This study provides detailed insights into digital transformation and capital market information efficiency, which enriches the research related to the economic consequences of digital transformation and demonstrates the theoretical and practical value of corporate digital transformation. [ABSTRACT FROM AUTHOR]

This study aims to verify the effect of media coverage on the earnings management of Brazilian listed companies. A sample of 284 Brazilian non-financial companies listed on the B3 was used, with quarterly data for the period 2011-2022. Media coverage was measured by the natural logarithm of the number of news stories released about the firms, and for earnings management, a detection model with accruals was used (Collins et al., 2017), estimated using an unbalanced panel in GMM 2SLS. The results show a negative association between media coverage and earnings management, indicating that managers tend to manage earnings less in the presence of media visibility, in order to avoid negative effects on the deviation from the real value of earnings. The research reveals that the Brazilian media acts as an external agent of governance, inducing the improvement of accounting information by monitoring management actions. Given the importance of the role played by the media, especially through the rapid dissemination of information, the results show that media coverage contributes to reducing the noise generated by earnings management. This finding could have implications for managers and the capital market, as it shows that the media is an agent that interferes, albeit indirectly, with corporate actions. Therefore, the media influences various organizations, with implications for management practices that seek to improve transparency. The study seeks to fill a gap regarding the effect of Brazilian media coverage on earnings management, shedding light on the media as an external element of corporate governance that contributes to an environment of better accounting information. [ABSTRACT FROM AUTHOR]

The objective of this article was to measure the cash flow at risk (CFaR) of non-financial companies in the Brazilian capital market and compare it to shareholders' equity in order to assess the risk of insolvency. Unlike banks and insurance companies, which have strong capital requirements, the current regulation of non-financial institutions in Brazil does not provide for the calculation or maintenance of a minimum shareholders' equity. This study fills a gap in the literature by relating CFaR to the shareholders' equity of entities, providing a measure of insolvency risk. Monitoring insolvency risk (i.e., the possibility of negative shareholders' equity) is critical for any entity, regardless of its industry, market, or size. The results of the CFaR measurement show that companies in different sectors can be exposed to insufficient resources in the event of operational problems. It is hoped that this will help regulators in different sectors to assess minimum capital requirements. CFaR was measured using Ebit and Ebitda (quarterly and annual). The panel consisted of 186 companies listed on the B³ between 2010 and 2022, totaling 4,897 company-quarters. The companies were divided into eight subgroups based on their characteristics. The results showed that non-financial listed companies in the Brazilian market may be undercapitalized, as 18% of the 169 entities that currently have positive shareholders' equity would become negative at a 1% risk level. CFaRs were also reestimated during the pandemic and did not show a clear pattern compared to other periods. [ABSTRACT FROM AUTHOR]

This research aims to investigate the moderating effect of environmental, social and governance (ESG) disclosure on the sensitivity of executive pay to market performance (pay-performance sensitivity - PPS) in Brazilian companies listed in the B3 IBrX-100 index. It also investigates the factors that influence PPS in order to seek explanations for the effect of ESG disclosure on PPS and to identify which theoretical perspective (agency theory, stakeholder theory, or the good governance view) can support the results found for Brazilian companies. It highlights the importance of monitoring ESG disclosure in the Brazilian capital market, as well as helping to understand whether or not ESG disclosure contributes to the extraction of shareholder income by executives, and provides insights for new research to be conducted considering ESG disclosure. The results have implications for understanding the principal-agent relationship and for understanding ESG disclosure in conflict mitigation when used by companies to improve PPS. A total of 81 companies were analyzed between 2016 and 2021. The method used for the main analyses was the ordinary least squares regression model (with robust standard errors), while quantile regression was used for the robustness analysis. The results indicate that ESG disclosure maximizes the sensitivity of executive pay to market performance. This study contributes to the literature by providing new evidence on PPS and identifying which theoretical perspective supports the results found in the Brazilian context. It also contributes to organizations by showing that ESG investments can mitigate agency problems and by revealing the importance of ESG implementation for firms, given the evidence of a positive impact on PPS. It contributes to society by encouraging organizations to invest in ESG issues. [ABSTRACT FROM AUTHOR]

The objective of this article is to evaluate the effect of financial slack on the value relevance of environmental expenditures in Brazilian capital market firms. The Brazilian literature, unlike the foreign literature, has neglected to investigate the value relevance of environmental performance information. The study addresses the combination of environmental information with the financial condition of firms within the scope of value relevance, obtaining evidence not yet contemplated in the literature on the Brazilian capital market. It is noteworthy that the financial perspective strongly influences the valuation of firms in terms of the environmental dimension. Companies that engage in environmental spending and are in a better financial position are better valued and considered economically interesting. The same is not true for firms in a worse financial position. The study shows how the environmental dimension, which is not a priority from the shareholder's point of view, can be the object of investor attention if the financial condition requirement is met. The market monitors environmental expenditures in order to assess much more the extent of the effects of these expenditures on the generation of future cash flows rather than the company's environmental commitment. The sample includes 52 companies whose shares were traded on the B3 S.A. in the period 2009-2018, totaling 252 observations. The model proposed by Ohlson was used, adapted according to the literature, and operationalized in POLS models. In addition, analyses were reproduced considering the possible moderating effect of financial slack measures on the environmental spending proxy. The results indicate that environmental spending contributes to reducing the valuation of firms, signaling to investors only future economic costs. Financial slack was found to be an important element in the valuation of firms with environmental expenditures, and companies with environmental expenditures and greater financial slack had higher valuations than those with less financial slack. [ABSTRACT FROM AUTHOR]

This article examines the influence of environmental, social, and governance (ESG) performance disclosure on stock performance in companies listed on the Indonesia Stock Exchange (BEI) from 2018 to 2022. The study finds that environmental performance has a positive and significant influence on stock performance, while social and governance performance do not have a significant influence. However, when all three aspects are considered together, they have a positive influence on overall stock performance. The research suggests that companies can improve their stock performance by paying attention to environmental performance. These findings provide insight for practitioners, regulators, and investors in the Indonesian capital market. Another study mentioned in the article found that social factors positively influenced company value, while social controversy had a positive impact on company value. Good corporate governance was also found to increase a company's success in achieving its goals. However, the research showed that governance performance had a negative or insignificant effect on stock performance. The results suggest that companies can improve their stock performance by focusing on environmental and social aspects, while also maintaining good governance practices. [Extracted from the article]

Regardless of economic cycles, financial regulation can be understood to be bound by an uncomfortable social policy trilemma. When faced with 1) providing market integrity, 2) fostering innovation, and 3) enabling financial inclusion, regulators have long been able to achieve, at best, only two of these three goals. Often the result of this trilemma are choices made in the name of consumer and investor protection, or innovation, that indirectly promote, enable or exacerbate wealth inequality by redlining capital markets or exposing the vulnerable to undue risk. In this article, I explain this trilemma and argue that addressing it will require novel innovations – from incorporating inclusion and innovation formally into regulatory mandates to upgrading existing offices of innovation, and creating offices of financial inclusion, to better navigate the tradeoffs inherent in the trilemma. [ABSTRACT FROM AUTHOR]

Mutual funds offer a dependable choice for small investors lacking the necessary skills, experience, or capital to participate in the capital market. Finding the factors influencing mutual fund performance in Pakistan is the aim of this study. The research examined the performance of thirty-five mutual funds that were available in Pakistan between 2016 and 2020.Mutual Fund Association of Pakistan annual reports and mutual fund annual reports were the sources of the yearly penal statistics. For the data analysis in this study, a fixed effect - Random effect OLS was employed. According to the study, fund performance is positively impacted by variables including asset turnover and fund size. And the fund performance is being negatively impacted by load fees. Fund managers ought to keep all the aspects in balance in order to guarantee the investors' profit through the maximizing of its return. [ABSTRACT FROM AUTHOR]

The aim of this research is to analyze the Quadruple Witching Days phenomenon and its impact on abnormal returns on the Indonesian stock market. This phenomenon has attracted the attention of many investors and academics, because it is believed to be able to significantly influence stock price movements. It is hoped that the results of this research can provide an in-depth understanding of the influence of Quadruple Witching Days on the Indonesian capital market. Associative descriptive research tests the influence of Quadruple Witching Days. Using secondary data and library methods in the LQ45 and SRI-KEHATI stock indices listed on the Indonesia Stock Exchange for the period 2010 to 2022 with daily and weekly data. The hypothesis test that will be used in this research is the Paired Sample t - Test and the non-parametric Mann-Withney test. There are differences in abnormal returns before and after the Quadruple Witching Days event on the LQ45 stock index. There is no difference in abnormal returns before and after the Quadruple Witching Days event on the SRI-KEHATI stock index. High Vigilance, Quick Selling or Buying, Portfolio Diversification as a consideration for taking profits for investors LQ45, Long Term Investment Approach, Portfolio Stabilization may be more suitable with investment strategies because there is no significant difference in abnormal returns, investors in SRI-KEHATI. [ABSTRACT FROM AUTHOR]

Brazil has a financial product developed with ESG (Environmental, Social and Governance) criteria, which contributes to measuring corporate sustainability in the country. The financial asset, known as Brazil’s ESG index, combines sustainable principles with the capital market. The ESGB11, listed on the Stock Exchange, Brasil, Balcão (B3), was developed by Dow Jones Indexes (DJI). The purpose of this study is to analyze whether the volume, risk and return on investment in ESGB11 has growth potential, which in this case would justify the intrinsic environmental cause. To this end, we chose to develop a multifactorial model under the Open Price Theory (ATP) and used bidirectional multivariate “Long-short Term Memory” (LSTM) to estimate and predict the index for the period 2021 to 2023. Data relating to B3 business days are extracted from the open database. This financial product makes it possible to measure the reduction of emissions given the fulfillment of DJI criteria in the environmental axis, however, based on a risk and return analysis, it behaved without growth potential. The investment volume does not grow throughout 2023 compared to 2021. The ten largest stocks underlying the fund have reduced the investment volume in the index. The quota return fell over the period along with the reduction in emissions between 2021 and 2023. [ABSTRACT FROM AUTHOR]

Purpose: The purpose is to make reflections from a historical, conceptual and comparative review on goodwill in one hundred years of accounting theory, still considered a difficult topic with the theoretical and normative evolution. Methodology: Theoretical essay produced from an integrative qualitative literature review. It presents the theoretical evolution and challenges observed by theorists and regulators since the seminal study "Accounting Theory" by William Paton (1922). Results: The relevance attributed to goodwill goes far beyond the concepts and criteria for recognition and measurement. Its interpretation and processing are influenced by cognitive aspects, economic interests, and in a moment of economic crisis, debates on the topic are intensified, motivated by stakeholders' concerns, regulators and theorists, the same in one hundred years of evolution. So, the future of goodwill is undefined. Contributions of the Study: The historical and comparative analysis, limited in the choice of the references on the subject, contributes to confirm the subjectivity and absence of conceptual, normative and practical consensus for goodwill, thus there aren't right or wrong among theorists and regulators. The scenario of high volatility in the capital markets during Covid-19 pandemic, for example, arose new theoretical discussions about the quantum and multidisciplinary dimension and the possible return of Accounting practices used in the past. Therefore, the relevance of goodwill requires that not only regulators establish rules, but that theoretical and practical ethically contribute to the debate. [ABSTRACT FROM AUTHOR]

This paper investigates the level of corporate governance quality (CGQ) of firms in sub-Saharan Africa and the factors that determine this CGQ as a build-up of the study of Waweru (Waweru, Managerial Auditing Journal 29:455–485, 2014). The study's sample comprises 104 companies listed on the respective stock markets of nine sub-Saharan African countries. The data are collected from annual reports from 2007 to 2019, a total of 1108 firm-year observations. Both static and dynamic panel data models are used in the analyses. The study established that the CGQ of firms in Sub-Saharan African capital markets is weak thus disputing the findings of Waweru (Waweru, Managerial Auditing Journal 29:455–485, 2014). The study also concludes that IFRS adoption, asset tangibility, ownership concentration, audit quality, firm size and national regulatory quality are the most consistent predictors of CGQ of firms in sub-Saharan Africa. The other determinants of CGQ include listing tenure, business operating tenure, leverage, firm growth opportunities and macroeconomic misery index. The novelty of this study stems from its consideration of a larger cross-country panel dataset from sub-Saharan Africa to extend the work of Waweru (Waweru, Managerial Auditing Journal 29:455–485, 2014). Again, the study's introduction of the economic misery index and regulatory quality variables as determinants of CGQ extends the agency theory by demonstrating how macroeconomic factors and the quality of the national regulatory environment can influence governance at the firm level. [ABSTRACT FROM AUTHOR]

The article elaborates on the EU Green Bond Standard, a cornerstone of the Proposal for a Regulation on European green bonds that was put forward by the European Commission in July 2021. Within the analysis, three research questions are posed. First, the article deals with the question of whether the EU Green Bond Standard is really needed; particularly, whether there is a need for EU regulatory intervention on the EU green bond market. Second, it examines the method of regulation which was adopted for the EU Green Bond Standard. Specifically, does this standard differ and offer any added value compared to private standards for the issuance of green bonds? Finally, the article discusses the impact of the EU Green Bond Standard on the EU green bond market. Within this section, the questions of fragmentation and regulatory competition between public (EU) and private regimes are dealt with. The article ends with proposals for modifications of the EU Green Bond Standard. It has been suggested that the EU Green Bond Standard should have a mandatory character for all issuances of green bonds on the EU green bond market. Private standards should not be replaced by the EU Green Bond Standard but only reconciled with it. With regard to its content, the EU Green Bond Standard should constitute a mixture of public and private obligations; yet, some necessary regulatory space should be left for private standards. [ABSTRACT FROM AUTHOR]

This study examines the impact of capital market on the relationship between energy consumption and carbon emissions. By employing a system Generalised Methods of Moments (GMM) for a sample of 138 developing countries over the period, 1990–2020, we find a U-shaped reverse relationship between renewable energy consumption and carbon emissions. The study reveals that beyond a threshold of 71.03, renewable energy consumption tends to increase carbon emissions. Similarly, the initial levels of carbon emissions reduce the use of renewable energy but beyond a 2.5 level of carbon emissions, renewable energy consumption begins to increase. We find that both the stock market and bond market reduce carbon emissions and enhance the levels of renewable energy consumption. We provide evidence to support that the capital market enhances the negative impact of renewable energy consumption on carbon emissions, while the corporate bond market magnifies the reductive effect of carbon emissions on renewable energy consumption. [ABSTRACT FROM AUTHOR]

Investors generally aim to obtain a high return from their stock portfolio. However, investors must realize that a high value-at-risk (VaR) is essential to calculate for this aim. One of the objects in the VaR calculation is the asymmetric return volatility of stocks, which causes an unbalanced decrease and increase in returns. Therefore, this study proposes a mean-value-at-risk (mean-VaR) stock portfolio optimization model based on stocks' asymmetric return volatility and investors' risk aversion preferences. The first stage is the determination of the mean of all stocks in the portfolio conducted using the autoregressive moving average Glosten–Jagannathan–Runkle generalized autoregressive conditional heteroscedasticity (ARMA-GJR-GARCH) models. Then, the second stage is weighting the capital of each stock based on the mean-VaR model with the investors' risk aversion preferences. This is conducted using the Lagrange multiplier method. Then, the model is applied to stock data in Indonesia's capital market. This application also analyzed the sensitivity between the mean, VaR, both ratios, and risk aversion. This research can be used for investors in the design and weighting of capital in a stock portfolio to ensure its asymmetrical effect is as small as possible. [ABSTRACT FROM AUTHOR]

Addressing financial risks draws attention from both government and academia. Current studies primarily focus on the impact of CSR on stock-price crash risk, overlooking the regulatory role of institutional ownership and internal control, and the mediating effect of analyst coverage. This paper investigates the relationship between CSR and stock price crash risk using data from A-share listed companies (2015–2021). Findings suggest that better CSR helps reduce stock-price crash risk. The mediating effect test shows that improved CSR attracts analysts' attention and enhances information transparency, thus reducing stock-price crash risk. Institutional ownership, internal control and CSR have substitution relations in inhibiting stock-price crash risk. Further research shows CSR's significant role in reducing stock-price crash risk for non-state-owned, eastern regions, and non-Big Four audited enterprises. This study enriches literature on stock-price crash risk and CSR and guide firms in reducing stock-price crash risk, promoting capital market development and enhancing enterprise evaluation systems. [ABSTRACT FROM AUTHOR]

The capital market is a meeting place for parties who have excess capital capacity with parties who need additional capital, both in the form of long-term and shortterm capital. One form of transaction that is quite popular in the capital market is a Repurchase Agreement Transaction or what is known as a Repo Transaction. The main problem in this research is what are the rights and obligations of the parties in a Repo Transaction in the Indonesian capital market in relation to the obligation to transfer ownership rights to the object of the Repo Transaction along with the legal consequences and whether Indonesian laws and regulations have provided legal protection for the seller in the Transaction Repos. This research was prepared using normative juridical legal research methods. The results of this research, namely the rights and obligations of the parties related to the obligation to transfer ownership rights, are that the parties in the Repo Transaction agreement are required to include the provisions of the agreement regarding the transfer of rights to share ownership. Apart from that, the seller is obliged to hand over the relevant securities to the buyer at the time of the first sale and purchase and at the repurchase maturity date, the seller is also obliged to pay the previously agreed price to get back the shares. Meanwhile, the buyer's obligation in this case is to pay the agreed securities price to the seller at the time of the first sale and purchase and at the repurchase maturity date, the buyer is obliged to hand over the securities in question to the seller. Legal provisions in Indonesia basically do not provide specific legal protection to sellers in implementing Repo Transactions. [ABSTRACT FROM AUTHOR]