17,293 results on '"CAPITAL market"'
Search Results
2. Segment disaggregation and equity‐based pay contracts.
- Author
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Cho, Young Jun and Seo, Hojun
- Subjects
FINANCIAL statements standards ,ACCOUNTING standards ,INTERNATIONAL Financial Reporting Standards ,CAPITAL market - Abstract
Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2024
- Full Text
- View/download PDF
3. Cost uniqueness and information uncertainty.
- Author
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Anderson, Mark, Mashruwala, Raj, Wang, Ye, and Zhao, Rong
- Subjects
RATE of return on stocks ,INVESTORS ,CAPITAL market ,COST ,ECONOMIES of scale - Abstract
Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2023
- Full Text
- View/download PDF
4. Earnings guidance stoppage and the value of financial analysts' research.
- Author
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Palmon, Dan, Peng, Xuan, and Yezegel, Ari
- Subjects
VALUE (Economics) ,FINANCIAL analysts ,SECURITIES analysts ,INVESTORS ,CAPITAL market - Abstract
Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2023
- Full Text
- View/download PDF
5. The implications of firms' derivative usage on the frequency and usefulness of management earnings forecasts.
- Author
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Campbell, John L., Cao, Sean Shun, Chang, Hye Sun, and Chiorean, Raluca
- Subjects
EARNINGS management ,EARNINGS forecasting ,SECURITIES analysts ,PATH analysis (Statistics) ,CAPITAL market ,BUSINESS enterprises ,DERIVATIVE securities - Abstract
Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2023
- Full Text
- View/download PDF
6. Can good ESG performance of listed companies reduce abnormal stock price volatility? Mediation effects based on investor attention.
- Author
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Wu, Fengju, Zhu, Bao, and Tao, Siqi
- Subjects
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INVESTORS , *MARKET sentiment , *SUSTAINABLE development , *CAPITAL market , *SUSTAINABLE investing - Abstract
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]
- Published
- 2024
- Full Text
- View/download PDF
7. The top-5 Brazilian stocks’ resilience over 13 years of political-economic events.
- Author
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de Souza e Silva, Suelle Cariele, Araújo Wickboldt, Leandro, and Formiga Miranda, Kléber
- Subjects
- *
CAPITAL assets pricing model , *EFFICIENT market theory , *ABNORMAL returns , *CAPITAL market , *STOCK prices - Abstract
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]
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- 2024
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8. Parent-Only Balance Sheet Information and Credit Risk Assessments.
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Tucker, Jennifer W., Ying Zhou, and Jigao Zhu
- Subjects
CREDIT analysis ,CONSCIOUSNESS raising ,BANK holding companies ,CAPITAL market ,FINANCIAL statements ,CREDIT default swaps - Abstract
General-purpose financial statements prepared under GAAP are for a consolidated reporting entity--a collection of legal entities that includes the parent and any subsidiaries it controls. This reporting model results in a loss of information about the individual legal entities within the consolidated reporting entity. Our study examines the role of parent-only balance sheet information in assessing the credit risk of the parent when it is a bank holding company. We obtain evidence from three trading platforms: credit default swaps (CDS), outstanding bonds, and new bonds. We find that parent-only leverage is useful for debtholders to assess the parent's credit risk even after considering consolidated leverage. Moreover, in CDS markets, parent-only leverage is more useful for firms without downstream guarantee than for firms with guarantee and is less useful for firms with a stronger internal capital market. Our study raises the awareness of parent-only financial information for credit risk assessments. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
9. The Impact of Directional Global Economic Policy Uncertainty on Indian Stock Market Volatility: New Evidence.
- Author
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Mishra, Aswini Kumar, Nakhate, Anand Theertha, Bagra, Yash, Singh, Abinash, and Kar, Bibhu Prasad
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ECONOMIC uncertainty ,FINANCIAL markets ,ECONOMIC policy ,MARKET volatility ,CAPITAL market ,VOLATILITY (Securities) - Abstract
This paper examines the effect of economic policy uncertainty (EPU) on the Indian capital market using the generalized autoregressive conditional heteroscedastic mixed data sampling (GARCH-MIDAS) approach. This study also disintegrates the Global EPU (GEPU) on its components using identity functions such as up, down, and composite parts dependent on the adjustment in the heading of the EPU and GEPU and tests the linkages among these parameters and the Indian securities exchange instability. Our empirical study shows that GEPU positively and significantly impacts the Indian capital market's volatility. That indicates that the Indian capital exchange volatility will also be unstable when the global economic policy uncertainty is higher. Further, based on the dynamic directions of EPU and GEPU, our results show that, in diverse situations, directional GEPU may present differently in predicting the uncertainty in the Indian capital market. This is primarily so when EPU and GEPU climb in the same period when our approach can obtain more powerful prediction precision. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
10. Asymmetric Tone in Management Discussion and Analysis and Its Impact: Evidence from the Chinese Stock Market.
- Author
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Yan, Sibei, Choi, Ahrum, Jung, Hyung Rok, and Lee, Joonil
- Subjects
FREE cash flow ,CAPITAL market ,FINANCIAL statements ,CHINESE language ,STOCKS (Finance) - Abstract
This paper investigates the relationship between managerial tone in management discussion and analysis (MD&A) disclosures and stock price crash risk. We make a distinction between two types of tone—concave and convex—based on how managers' tone changes according to whether performance is good or bad. Tone is classified as 'concave' ('convex') when managers overstate (understate) bad news and understate (overstate) good news. Using data on Chinese listed firms from 2013 to 2018, we find that convex tone is positively associated with stock price crash risk, and negatively associated with future performance. The positive relationship between convex tone and stock price crash risk is more pronounced for firms with high free cash flow, opaque financial reporting, and non‐stated‐owned enterprises. These results suggest that the use of a convex tone in MD&A may have a negative impact on the capital market. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
11. Wall Street and Product Quality: The Duality of Analysts.
- Author
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Yinghua Li, Yupeng Lin, Xiaoqiao Wang, and Shijie Yang
- Subjects
FINANCIAL analysts ,PRODUCT failure ,PRODUCT quality ,CAPITAL market ,STOCK prices - Abstract
We investigate the role of financial analysts in product quality failures. Relying on information about product recalls, we first show that analyst coverage on average reduces product quality, particularly when managers face greater short-term pressure from institutional investors. However, after identifying a subgroup of analysts who raise questions on product-related issues in earnings conference calls, we find that coverage by these "product analysts" enhances rather than compromises product quality. Firms with greater product analyst coverage are also more likely to retire low-quality products. Additional analysis demonstrates that product analysts help safeguard product quality by further probing into product-related matters and issuing more timely recommendation downgrades after firms announce product deficiencies. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
12. The Impact of Corporate Reputation on Cost of Debt: A Panel Data Analysis of Indian Listed Firms.
- Author
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Kaur, Amanpreet, Joshi, Mahesh, Singh, Gagandeep, and Sharma, Sharad
- Subjects
CAPITAL costs ,CORPORATE debt financing ,CORPORATE investments ,REPUTATION ,CORPORATE image - Abstract
The study analyses the impact of financial reputation on the cost of debt financing for Indian companies. In doing so, panel regression analysis is performed using firm-specific data on 395 Indian listed firms covering 2002–2017. The paper uses market capitalization as a benchmark of financial reputation. For robustness check, excess of market value over book value is also used as a proxy of financial reputation. The study found that the reputation of a firm in financial markets plays a vital role in determining the cost of financing. The results provide evidence supporting a significant negative relationship between financial reputation and the cost of debt. The findings provide motivation for corporate managers to invest in reputation-building activities to reduce the cost of borrowing. The relevance of reputation in lowering the cost of debt capital has garnered limited attention, especially in emerging economies like India. This study is a preliminary attempt to link two strands of research in the Indian context: financial reputation and the cost of debt. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
13. Empirical Analysis of Demand for Sukuk in Uzbekistan.
- Author
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Asadov, Alam
- Subjects
FINANCIAL inclusion ,ISLAMIC finance ,CAPITAL market ,LOGISTIC regression analysis ,FINANCIAL instruments - Abstract
Islamic finance (IF) holds significant potential for economic development and the enhancement of financial inclusion in Uzbekistan. Sukuk, as a key Islamic capital market instrument and Shari'ah-compliant investment alternative, plays an important role in this context. However, the demand for sukuk and its determinants are not well understood by policymakers and industry practitioners in Uzbekistan. This study aims to address this research gap by utilizing an ordinal logit model on primary data collected through a survey of 196 individuals from diverse demographic and professional backgrounds, with varying levels of IF and capital market knowledge and experience. The regression results indicate that factors such as prior investment experience, knowledge of sukuk, and a strong inclination toward Shari'ah-compliant investments positively influence an individual's intent to buy sukuk. Conversely, we found that residents of Tashkent (the capital city) are less likely to invest in sukuk compared to residents of other regions in Uzbekistan or those residing abroad. Based on this study's findings, several essential policy and practical recommendations are provided to relevant stakeholders. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
14. THE PRACTICE OF GREEN WASHING MOTIVATED BY FINANCIAL CONSTRAINTS: AN ANALYSIS IN GLOBAL ECONOMIES.
- Author
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Lirio Maria, Michele Monteiro, da Silva Zonatto, Vinícius Costa, Júnior, Elizeu Maria, Cláudio Louzada, Luiz, and Pinheiro Nascimento, Schleiden
- Subjects
GREENWASHING (Marketing) ,INDUSTRIAL management ,ECONOMETRICS ,CAPITAL market ,ECONOMIC models ,CAPITAL costs ,FINANCIAL risk ,SOCIAL responsibility of business - Abstract
Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2024
- Full Text
- View/download PDF
15. Predicting fraud in financial statements using supervised methods: An analytical comparison.
- Author
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Nemati, Zahra, Mohammadi, Ali, Bayat, Ali, and Mirzae, Abbas
- Subjects
FRAUD ,FINANCIAL statements ,SUPERVISED learning ,CAPITAL market - Abstract
The current era is known as the “age of information,” and the capital market is built on information as the economy’s primary engine. The system of financial statements of corporations, which is the most significant source of information used in the capital market, produces an information system called accounting. Fraud and manipulation in these financial statements raise corporate risk, erode investor confidence, and cast doubt on the objectivity of accounting experts. Owing to the significance of fraud, this study aims to offer a way to foretell the likelihood of fraud in the financial statements of businesses admitted to the Tehran Stock Exchange between 2014 and 2021. 180 enterprises listed on the stock exchange make up the statistical sample (532 years of companies - suspected fraud years and 908 years - of non-fraudulent companies). According to the independent auditor’s assessment, the existence of dormant assets and items, the doubting of the assumption of continuity of activity, the presence of tax discrepancies with other tax areas, and the dearth of adequate performance tax reserves led to the selection of the companies suspected of fraud. 96 financial ratios have been compiled by examining the theoretical foundations and research. In this research, the supervised methods of support vector machine, K-nearest neighbor, Bayesian network, neural network, decision tree, logistic regression, random forest and the hybrid method (bagging) have been used. The results of the research showed that the performance evaluation criteria of precision, accuracy, sensitivity, and F-Measure and efficiency (ROC) and the accuracy result of the confusion matrix in the combined method (bagging) were 72.45, 61.21, 64.74, 62.93, 73.50, and 72.45 percent, respectively, which indicates the better performance and greater ability of this method to predict the possibility of fraud in financial statements compared to other proposed methods. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
16. Evolution and Challenges of Environmental, Social, and Governance Practices: An Analysis of the Brazilian Stock Exchange's Corporate Sustainability Index.
- Author
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Paranhos, Maria Aparecida Hess Loures, Nääs, Irenilza de Alencar, and Neto, Pedro Luiz de Oliveira Costa
- Abstract
Environmental, social, and governance (ESG) practices are increasingly recognized as critical for corporate sustainability and market competitiveness, driven by heightened expectations from investors, governments, and consumers. This study examines the evolution of ESG practices among companies listed on the Brazilian Stock Exchange's Corporate Sustainability Index (ISE B3) from 2005 to 2022. We analyzed the index portfolio's composition, focusing on changes in ESG dimensions over time. The only six long-lived companies in this index, from retail, banking, and energy sectors, were selected for in-depth analysis. We further evaluated the quality and consistency of ESG disclosures in company reports. Findings indicate relevant fluctuations in the number of companies included in the ISE B3 and variations in ESG scores for the companies. These variations may be attributed to the voluntary nature of ESG practices and the absence of standard disclosure. This study reveals a lack of homogeneity in ESG reporting, which could be addressed by establishing more straightforward guidelines and global standards. This research underscores Brazilian companies' challenges navigating diverse ESG frameworks to align with evolving societal and environmental expectations. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
17. Corporate Inertia and Information Asymmetry: Evidence from Iran.
- Author
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Abdi, Esmaeil, Gerayli, Mehdi Safari, and Pitenoei, Yasser Rezaei
- Subjects
CAPITAL market ,STOCKS (Finance) ,LIQUIDITY (Economics) ,STAKEHOLDERS - Abstract
Corporate inertia, stemming from a reluctance to adapt and innovate over time, poses significant challenges in the modern business landscape, particularly in capital markets. This study examines the impact of corporate inertia on information assymetry within the Iranian capital market. Employing a comprehensive research approach involving meta-synthesis, Delphi analysis, and questionnaire design, we assess corporate inertia. Questionnaires were distributed to managers of sampled companies, with 138 responses included in the statistical analysis. Information asymmetry is measured using three proxies: bid-ask spread, turnover, and the liquidity of the company's stock. The findings indicate a positive and significant relationship between corporate inertia and information assymetry. Our results suggest that corporate inertia fosters a managerial mindset characterized by insularity and resistance to change. This mindset prioritizes individual insights over stakeholder interests, resulting in a monopolistic control of information disclosure that exacerbates information assymetry in the market. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
18. The Impact of the Cryptocurrency Market on Islamic vs. Conventional Stock Returns: Evidence from Gulf Cooperation Council Countries.
- Author
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Mansour Nomran, Naji, Laallam, Abdelkader, Haron, Razali, Kashi, Aghilasse, Hossen Shaikh, Zakir, and Abey, Joji
- Subjects
INVESTORS ,RATE of return on stocks ,STOCK price indexes ,BLOCKCHAINS ,CAPITAL market ,CRYPTOCURRENCIES - Abstract
The rapid rise and widespread global adoption of cryptocurrencies in recent years has fundamentally transformed the international financial landscape, with digital assets increasingly being recognized for their potential to influence the stability and performance of traditional capital markets. Against this backdrop, this study aims to empirically investigate the impact of cryptocurrency returns on Islamic vs. conventional stock returns in Gulf Cooperation Council (GCC) countries. The salient distinctions between Islamic and conventional stock markets include fundamental differences in principles, investment allocations, and risk profiles, underscoring the importance of examining the impact of cryptocurrency returns on these distinct equity segments. Daily data were collected from stock indices in five GCC countries over the period 2016–2019, including two sub-periods: before and after the 2017 crypto crash. Pooled OLS, fixed effects, random effects, and generalized linear models (GLMs) were used to analyze the data collected during the study. With the GCC increasingly focusing on cryptocurrency markets, there is growing concern about these markets' potential impact on regional stocks. This study addresses the important questions of whether the impacts of the cryptocurrency market on Islamic vs. conventional stock markets differ throughout the GCC region and how these impacts have evolved since the crypto crash period. The findings reveal that cryptocurrency returns had a negative impact on both GCC Islamic and conventional stock market returns for the full sample period (2016–2019), and the negative effect was far more pronounced for conventional stocks. For the two sub-periods before and after the crash, only the cryptocurrency market and conventional GCC stocks remained negatively correlated, while the cryptocurrency market and the GCC Islamic stock markets became uncorrelated. Thus, for the calmer sub-periods before and after the crypto crash, the rise in cryptocurrency returns may have enticed GCC investors away from conventional stocks, perhaps resulting in a decline in their investment in these stocks. Meanwhile, those who invest in Islamic stocks may not be exposed to this temptation. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
19. The Tale of Two Economies: Inflationary Dynamics in the Euro Area and the US in the Context of Uncertainty.
- Author
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Collignon, Stefan
- Subjects
MONETARY policy ,EUROZONE ,FEDERAL Reserve banks ,CAPITAL market ,CAPITAL costs - Abstract
In recent years, the global economy has been hit by a sequence of severe shocks that affected the two largest economies, the USA and the Euro Area, severely. Uncertainties about the future abound. While the challenges are similar for both economies and the policy tools resemble each other, they apply to different economic landscapes. What can they learn from each other? This paper looks at the basic structural facts, the nature of uncertainty shocks, and the efficiency of policy tools in the two economies. The key to understanding recent developments is uncertainty. This paper argues that the channel through which uncertainty influences inflation, wage cost, and unemployment is the markup firms charge to cover their cost of capital. While the measurements of uncertainty are uncertain, adding a proxy for uncertainty can improve the estimates of the basic New Keynesian model. The Federal Reserve Bank has been more successful because it operates in a more integrated capital market. In the Euro Area, uncertainty is higher than in the US and this could make disinflation in Europe more painful in terms of unemployment. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
20. What else lies behind the credit rationing? Exploring the issue of employment.
- Author
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Vlassas, Ioannis, Kallandranis, Christos, Ballis, Antonis, Glyptis, Loukas, and Thanh, Lan Mai
- Subjects
CREDIT control ,CAPITAL market ,GOVERNMENT policy ,EMPLOYMENT ,RESEARCH personnel - Abstract
Purpose: This paper aims to review the literature extensively by analysing recent work and providing a guide for models, data sets and research findings. Design/methodology/approach: This paper reviews the literature extensively by analysing recent work and providing a guide for models, data sets and research findings within the context of capital market imperfections. The authors further break down the literature into closer-in-nature categories for reader's convenience and comprehension. Finally, the authors address gaps in the existing literature and propose government policies that can tone down the potential effect of credit rationing on employment. Findings: This paper provides a map of the literature so as to help future researchers in the relevant literature and give a short insight of what has been explored so far. Originality/value: This paper is original and is the result of a thorough review of an extensive literature. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
21. The impact of mainstream financial press attention on stock pricing efficiency in the China stock market.
- Author
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Yin, Haiyuan and Hu, Xiangmiao
- Subjects
AGENCY costs ,CAPITAL market ,STOCKS (Finance) ,INTERMEDIATION (Finance) ,PRICE increases ,FINANCIAL statements - Abstract
As the pivotal figure of information transmission in the capital market, the mainstream financial press has a significant impact on the operation of the stock market. Based on the mainstream financial press, this study obtains the news reports of 945 China A‐share listed companies in 2010–2019 and analyzes the relationship between the attention of the mainstream financial press and the efficiency of stock pricing. Further, we explore the mediating effect of corporate governance in this correlation. The empirical results show that the more reports on listed companies from the mainstream financial press the lower the delay level of the stock price of listed companies. At the same time, the characteristics information of the stock price increases, the higher the stock pricing efficiency. The attitude of press reports of listed companies also has an impact on the efficiency of stock pricing. The improvement of pricing efficiency will be achieved through neutral reporting. Mainstream financial press reports indirectly improve the efficiency of stock pricing by reducing the agency costs of the two types, and corporate governance plays a significant intermediary role in it. Finally, compared with market‐oriented media, the effect of policy‐oriented mainstream financial press on pricing efficiency is more significant. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
22. Role of FinTech Apps in Increasing Investment Decisions: A Study on the Capital Market
- Author
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Aryan Priyadarshi, Pankaj Singh, Padam Dawadi, Akhilesh Kumar Dixit, and Dinesh Prasad
- Subjects
fintech ,capital market ,investment decisions ,investor behavior ,Capital. Capital investments ,HD39-40.7 ,Business ,HF5001-6182 ,Banking ,HG1501-3550 ,Revenue. Taxation. Internal revenue ,HJ2240-5908 - Abstract
The proliferation of FinTech apps has democratized access to financial services, empowering individuals and businesses to take greater control of their finances. These apps have catalyzed financial innovation, disrupted traditional business models, and fostered competition in the financial industry. Moreover, FinTech apps have the potential to drive economic growth, promote financial literacy, and advance financial inclusion on a global scale. FinTech applications have played an important role in the creation of an arena where information is collected, stored, and processed to make the best decisions of investment. This has boosted the investment and increased the activity in capital markets when considered from the investors’ point of view. Capital markets have always been an important place for investors to invest in long-term securities with a maturity of more than one year. Primary as well as secondary markets are part of it. People invest in securities expecting a return in the form of capital gains and/or income. The role of FinTech applications in facilitating various investment decisions has also opened doors to retail investors in capital markets. Traditionally, retail investors have been overlooked because they are perceived not to have enough capital to invest, be too risk-averse, and be too costly to service. Both quantitative and qualitative data have been used. 150 online surveys were used to gather primary data. The outcome from this study showed a major shift in stock market investors towards digital connection due to various reasons. Some cultural and behavioral effects have been found among the investors for the financial transactions.
- Published
- 2024
- Full Text
- View/download PDF
23. Customer referencing and capital market benefits: Evidence from the cost of equity.
- Author
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Jing, Jiao, Myers, Linda A., Ng, Jeffrey, and Su, Lixin
- Subjects
CAPITAL costs ,CAPITAL market ,CONSUMERS ,MARKET sentiment ,FINANCIAL statements - Abstract
Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2023
- Full Text
- View/download PDF
24. Foreign Holding Companies and the US Taxation of Foreign Earnings: Evidence from the Tax Increase Prevention and Reconciliation Act of 2005.
- Author
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MURPHY, FRANK
- Subjects
HOLDING companies ,TAXATION ,FOREIGN investments ,FOREIGN subsidiaries ,CAPITAL market ,FOREIGN ownership of business enterprises - Abstract
Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2023
- Full Text
- View/download PDF
25. Timing the transition: gender diversity's role in family IPOs.
- Author
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Carbone, Emmadonata, Mussolino, Donata, and Viganò, Riccardo
- Abstract
Purpose: This study investigates the relationship between board gender diversity (BGD) and the time to Initial Public Offering (IPO), which stands as an entrepreneurially risky choice, particularly challenging in family firms. We also investigate the moderating role of family ownership dispersion (FOD). Design/methodology/approach: We draw on an integrated theoretical framework bringing together the upper echelons theory and the socio-emotional wealth (SEW) perspective and on hand-collected data on a sample of Italian family IPOs that occurred in the period 2000–2020. We employ ordinary least squares (OLS) regression and alternative model estimations to test our hypotheses. Findings: BGD positively affects the time to IPO, thus, it increases the time required to go public. FOD negatively moderates this relationship. Our findings remain robust with different measures for BGD, FOD, and family business definition as well as with different econometric models. Originality/value: The article develops literature on family firms and IPO and it enriches the academic debate about gender and IPOs in family firms. It adds to studies addressing the determinants of the time to IPO by incorporating gender diversity and the FOD into the discussion. Finally, it contributes to research on women and outcomes in family firms. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
26. Ambiguity in capital market and equity investment.
- Author
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Eidizadeh, Maryam, Ghazaani, Hassan Ghodrati, Farzinfar, Ali Akbar, and Panahian, Hossein
- Subjects
CAPITAL market ,INVESTMENTS ,CORPORATE governance ,AMBIGUITY - Abstract
Modeling and predicting fluctuations are important for many financial applications, including asset allocation, risk measurement and option pricing. This paper identifies and ranks the factors affecting market ambiguity and equity investment in companies listed on the Tehran Stock Exchange. This paper reviews the literature to identify the factors affecting market ambiguity and equity investment while conducting semi-structured interviews using the qualitative method of theme analysis. The experts interviewed were eighteen university professors and capital market activists and experts. A literature review, research, and interview results revealed six main themes, categorizing the factors influencing market ambiguity and equity investment in companies. This paper identified and ranked the main factors by the identified key factors and the fuzzy Delphi method. The results showed that the factors of financial performance, market, liquidity, financial analysis, environment, ambiguity and corporate governance are effective in market ambiguity and equity investment of companies, respectively. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
27. The power of financial support in accelerating digital transformation and corporate innovation in China: evidence from banking and capital markets
- Author
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Zhuoya Du and Qian Wang
- Subjects
Digital transformation ,Banking sector ,Capital market ,Moderating effect model ,Threshold regression model ,Public finance ,K4430-4675 ,Finance ,HG1-9999 - Abstract
Abstract This study explores the role of financial support in the digital transformation of Chinese A-share-listed companies from 2001 to 2020. By utilizing the moderating effect model and threshold regression model, this study finds the following results: (1) Digital transformation positively impacts innovation, and the support of banking and capital markets further strengthens this impact. (2) With the development of banking and capital markets, the impact of digital transformation on innovation changes from negative to positive, which is also reflected in the subsamples of Eastern companies, small and medium-sized companies (SMEs), and non-SMEs. (3) The study reveals that only the capital market in the non-Eastern region has no threshold, and capital market support is effective only for non-SMEs when it reaches a higher level. These findings have important implications for policymakers in promoting digital transformation through financial support and help companies understand how to use financial support to improve competitiveness.
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- 2024
- Full Text
- View/download PDF
28. Portfolio management under capital market frictions: a grey clustering approach.
- Author
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Ţilică, Elena Valentina, Dragotă, Victor, Delcea, Camelia, and Tătaru, Răzvan Ioan
- Subjects
PORTFOLIO management (Investments) ,CAPITAL market ,GRAY market ,INTERNATIONAL markets ,INVESTORS ,EFFICIENT market theory ,PORTFOLIO diversification - Abstract
International portfolio management is influenced by the existence of "frictions", factors or events that interfere with trade, which are linked in financial literature to market-specific factors, such as available information, restrictions, investor protection, or market liquidity. Given the wide variety of factors that can be included in these categories, scientific studies typically focus on a reduced number of indicators at a time in order to offer an in depth analysis of their impact. We offer a consolidated view of the perspectives observed in financial literature by proposing a novel index for market frictions that includes all these four components and rank fifteen post-communist East European capital markets based on their index values. We then constructed various scenarios by assuming different levels of importance for the criteria used in index construction. By employing grey clustering analysis, we cluster these capital markets into three categories—strongly recommended, recommended with some reserve, and not recommended—based on the importance given by the decision maker to these factors. The results show that some of the studied markets are in the same cluster, irrespective of the chosen scenario. The only market always included in the "strongly recommended" category is Hungary, indicating that it is a good investment option for international participants. Bulgaria and Slovakia are always regarded as "recommended with reserve" markets, whereas the Republic of Moldova is part of the "not recommended" category. The other markets show a degree of variability that can be explained by different investor perspectives. This study contributes to the existing literature by combining the advantages of grey clustering and portfolio analysis. Investors can use this approach during the decision-making process related to their investments. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
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29. Embodied CO2 emissions of equity portfolios for Chinese asset managers.
- Author
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Wang, Jinglei, Zhang, Zengkai, Chen, Danbo, and Guan, Dabo
- Subjects
ASSET allocation ,PARIS Agreement (2016) ,SUSTAINABLE investing ,CAPITAL market ,GLOBAL warming ,CLIMATE change - Abstract
The 2015 Paris Agreement has set out the climate change target of limiting global warming to 1.5 °C, which poses a serious challenge to countries to reduce emissions. As the world's largest carbon emitter, promoting the realization of the "dual-carbon" goal is the key to realizing China's green transformation and high-quality development. Chinese asset managers play active roles in the capital market as an important channel of asset allocation. Currently, the vast majority of Chinese asset managers hold high percentages of high-carbon industries in their portfolios, and lack quantitative data of their carbon footprints embodied in equity investments, which faces huge carbon-related risks. Therefore, it's an urgent need to comprehensively and scientifically measure financed emissions of Chinese asset managers, which is of great significance for asset managers' carbon risk management and sustainable investment. This paper develops a detailed inventory of carbon emissions for equity portfolios managed by Chinese asset managers from 2010 to 2020, which stands as a pivotal reference for in-depth analysis of emission characteristics. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
30. Framework Model for Financing Sustainable Water and Sanitation Infrastructure in Zimbabwe.
- Author
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Mundonde, Justice and Makoni, Patricia Lindelwa
- Subjects
SUSTAINABLE investing ,ENVIRONMENTAL infrastructure ,SANITATION ,PUBLIC-private sector cooperation ,TOBITS ,CAPITAL market - Abstract
Financing frameworks for Public–Private Partnerships (PPPs) are lacking in developing countries. This study aims to develop a financing framework for adoption for water and sanitation PPP infrastructure projects in Zimbabwe. Using data covering a 25-year period from 1996 to 2021, Tobit econometric models are applied to the secondary data collected from both international and domestic sources. The results of this study confirm that capital market variables, bank market development, and economic affluence drive the financing of water and sanitation Public–Private Partnership infrastructure projects in Zimbabwe. It was also established that both public and private sources of finance are instrumental in financing water and sanitation PPP projects. The results inform our eventual framework model, which integrates the Public–Private Partnership (PPP) models, sources of finance for water and sanitation PPPs, and the drivers of water and sanitation PPP finance. This study recommends the application of the developed framework in the water and sanitation Public–Private Partnership infrastructure financing policy of developing countries so as to capitalise on the strengths, resources, and networks of the respective stakeholders in the PPPs. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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- View/download PDF
31. 'Mind the Gap'--reforestation needs vs. reforestation capacity in the western United States.
- Author
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du Lac, Ariella Chichilnisky, Downer, Rebecca, Fargione, Joseph, Haase, Diane L., Hoecker, Tyler, Kildisheva, Olga A., Murdoch, Alix, Newman, Shaw, North, Malcolm, Saksa, Phil, Sjoholm, Matt, Baribault, Tom, Buonanduci, Michele S., Chambers, Marin E., Gonzales, Lisa, Brian, Harvey, Hurteau, Matthew D., Loevner, Jonathan, and Safford, Hugh D.
- Subjects
CLIMATE change ,REFORESTATION ,SUPPLY chain management ,CAPITAL market - Abstract
Tree establishment following severe or stand-replacing disturbance is critical for achieving U.S. climate change mitigation goals and for maintaining the co-benefits of intact forest ecosystems. In many contexts, natural post-fire tree regeneration is sufficient to maintain forest cover and associated ecosystem services, but increasingly the pattern and scale of disturbance exceeds ecological thresholds and active reforestation may be warranted. Our capacity to plant trees, however, is not keeping pace with reforestation needs. This shortfall is uniquely apparent in the western U.S., where wildfire size and severity have increased in recent decades and long-term divestment in the reforestation supply chain has limited our ability to respond to existing needs. Here we present an analysis of key facets of both the supply and demand side of reforestation in the western U.S. and address six questions: (1) What is the current backlog of potential reforestation needs driven by high-severity wildfire?; (2) How will increasing wildfire activity through the end of the century affect potential reforestation needs?; (3) What is our capacity to meet current and future reforestation needs?; (4) How can we scale the reforestation supply chain to meet current and future demands?; (5) What approaches to reforestation can promote forest resilience to climate change and wildfire?; and (6) Where are opportunities emerging from recent policy initiatives, innovative public-private partnerships, and natural capital markets for scaling reforestation? Between 1984 and 2000, annual tree planting capacity met post-fire needs but cumulatively over the last two decades (2000 to 2021) it has fallen short of fire-driven needs by an estimated 1.5 million ha (ca. 3.8 million ac). We anticipate this gap will increase 2 to 3 fold by 2050. Scaling up reforestation efforts to close this gap will require increased investment across all facets of the reforestation supply chain, public-private partnerships, and novel approaches to reforestation that increase the resilience of western forests to drought and wildfire. We highlight emerging opportunities from recent policy initiatives and conservation finance for expanding reforestation efforts. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
32. Adaptive Market Hypothesis and Predictability: Evidence in Latin American Stock Indices.
- Author
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Cruz-Hernández, Andrés R. and Mora-Valencia, Andrés
- Subjects
- *
STOCK price indexes , *NONLINEAR theories , *MATHEMATICAL analysis , *CAPITAL market , *EFFICIENT market theory - Abstract
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]
- Published
- 2024
- Full Text
- View/download PDF
33. The Relationship between Financial Development and Economic Growth in EU Member Countries: Sub-Group Estimation Based on the Countries' Level of Development.
- Author
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Pușcașu, Ela-Andrada
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- 2024
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34. INSTITUTIONAL INVESTOR ASSOCIATION AND STOCK PRICE CRASH RISK: EVIDENCE FROM CHINA.
- Author
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Li Zhao, Nathee Naktnasukanjn, Dawod, Ahmad Yahya, and Xuemei Zhang
- Subjects
INVESTORS ,INSTITUTIONAL investors ,CAPITAL market ,GOVERNMENT business enterprises ,PROPERTY rights ,AGENCY costs - Abstract
This study investigates the relationship between institutional investor association and stock price crash risk, using data from all listed non-financial sector companies in the Chinese capital market. The findings indicate a significant positive correlation between institutional investor association and stock price crash risk. Moreover, property rights and agency costs play significant moderating roles in this relationship. Specifically, the impact of institutional investors on stock price crash risk is more pronounced in non-state-owned enterprises (non-SOEs) than in state-owned enterprises (SOEs). Furthermore, this impact is more pronounced in firms with high agency costs and prominent agency problems compared to firms with low agency costs. This research contributes to financial regulators being able to identify better and prevent stock price crashes, ensuring the stability of investors' returns from their invested enterprises. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
35. The The NewConnect market as a source of raising funds for the SMEs.
- Author
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ZABIELSKA, IZABELA and EJSMONT, ANETA
- Subjects
BUSINESSPEOPLE ,SMALL business ,CAPITAL market ,POLISH voivodeships ,RECESSIONS - Abstract
Motivation: The NweConnect market is intended for small, innovative and dynamically developing companies, especially in the so-called new economy. A debut on this market is one of the possible strategies for raising capital by a small and medium-sized entrepreneur. In times of economic downturn and limited supply of capital on the capital market, only the most credible have a chance to raise capital on the alternative market. Aim: recognition of the actual nature of companies listed on the alternative market in Poland, with particular emphasis on the voivodeships of Eastern Poland. It was assumed that mainly young, innovative and fast-growing companies are listed on the NewConnect market. The analysis was based on a review of domestic and foreign literature and on the estimated linear econometric model. Results: Most companies on the NewConnect market are not characterized by rapid development, short period of entering the market and a high level of innovation. There are also companies from industries where the level of innovation was not a key element of activity from the beginning. In addition, the changes that have taken place (i.e. from market entry to the current situation, 2007–2022) are not favourable. While at the beginning of their activity (since 2007) listed companies were characterized by a relatively high level of innovation, now (2022) this level is decreasing. This justifies the need for further research on the development of the NewConnect market as a source of financing for small and medium-sized enterprises. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
36. Exploring the Resilience of Islamic Stock in Indonesia and Asian Markets.
- Author
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Nofrianto, Nofrianto, Nugraha, Deni Pandu, Ahmed, Amanj Mohamed, Muttaqin, Zaenal, Fekete-Farkas, Maria, and Hágen, István
- Subjects
FINANCIAL markets ,MARKET timing ,VALUE at risk ,ALTERNATIVE investments ,CAPITAL market ,FINANCIAL crises ,PRODUCT returns - Abstract
This study aims to investigate the relationship between returns and risk of Islamic stock under stable economic conditions, crises, and pandemics within the scope of Indonesian and Asian Islamic capital markets. How do economic conditions affect the risks and returns of investors in the Indonesian and Asian Islamic capital markets? Verification of the veracity of the Islamic capital market serves as a more resilient option for alternative investments. This study uses Granger causality to determine exogenous and endogenous variables when building the model. The model that is formed is then analyzed using regression with dummy variables of stable economic conditions, crises, and pandemics. The first research findings on differences in crisis, stable and pandemic times in the Asian stock market show that there is no significant difference in effect between stable times and during a crisis, but there are differences in the effect during stable and pandemic times. The second research finding states that the return on Asian market Shariah stocks has no influence on increasing or reducing the value of risk or value at risk. The third finding explains that Islamic stocks in Indonesia have a greater risk value during pandemics and crises than in stable times, but the effect of pandemic and crisis conditions is not as great as Islamic stocks in Asia as a whole. In order to stabilize markets and reduce risks, regulatory bodies and governments frequently employ a variety of actions during times of crisis. When applied to trading volume, risk, and return patterns, these findings can help determine the appropriate policy. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
37. FRACTALITY OF CROATIAN AND SERBIAN STOCK MARKETS.
- Author
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Bošnjak, Mile, Cicvarić, Branimir Cvitko, and Čemerin, Matija
- Subjects
EFFICIENT market theory ,CAPITAL market ,COLUMNS ,CROSS correlation ,SERBS - Abstract
Empirical literature explaining stock markets behaviour develops in a several directions. One strand of literature supports efficient market hypothesis while other strand of literature suggests fractal market hypothesis. Existing literature presents mixed findings on long memory property and hypothesis of stock market fractality. This paper aims to contribute to the debate and examine multifractality and long memory property of returns in Croatian and Serbian capital markets while considering the role of trading columns. Using multifractal Detrended Fluctuation Analysis and daily returns from the beginning of 2010 up to the end of 2021 for CROBEX and BELEX15 empirical finding suggested multifractality and long memory or persistence in CROBEX and BELEX15 returns. Dynamics in trading volumes exhibited multifractality but no long memory property in case of CROBEX as well as in case of BELEX15. Price-volume cross-correlation in case of CROBEX as well as in case of BELEX15 can be described as mean reverting process with no long memory property. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
38. ESG, financial constraint and financing activities: A study in the Chinese market.
- Author
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Guo, Xuejing, Li, Shi, Song, Xiaoping, and Tang, Zilin
- Subjects
CAPITAL market ,FINANCIAL performance ,GOVERNMENT business enterprises ,DOMESTIC markets ,CREDIT - Abstract
This paper investigates the impact of Chinese firms' environmental, social, and governance (ESG) performance on their financial constraint and financing activities. We find a negative association between firms' ESG performance and their financial constraint driven by the Chinese government's commitment to tackling climate change. Compared with state‐owned enterprises (SOEs), non‐SOEs have alleviated their financial constraint through both equity and debt issuance, thanks to the stock price appreciation and green credit. High‐pollution firms benefit from both equity and debt issuance, while low‐pollution firms mainly finance through equity issuance. Our findings demonstrate the leading role of the Chinese government in its domestic capital markets. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
39. Social media investors' sentiment as stock market performance predictor.
- Author
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Ben Cheikh, Sana, Amiri, Hanen, and Loukil, Nadia
- Subjects
RATE of return on stocks ,MARKET sentiment ,SOCIAL media ,STOCK transfer ,CAPITAL market ,VOLATILITY (Securities) - Abstract
Purpose: This study examines the impact of social media investor sentiment on the stock market performance through qualitative and quantitative proxies. Design/methodology/approach: The authors use a sample of daily stock performance related to S&P 500 Index for the period from December 18, 2017, to December 18, 2018. The social media investor sentiment was assessed through qualitative and quantitative proxies. For qualitative proxies, the study relies on three social media resources": Twitter, Trump Twitter account and StockTwits. The authors proposed 3 methods to reflect investor sentiment. For quantitative proxies, the number of daily messages published from Trump Twitter account and StockTwits is considered as a signal of investor sentiment. For regression model, the study adopts the autoregressive distributed lagged to determine the relationships between the nonstationary series. Findings: Empirical findings provide evidence that quantitative measures of investor sentiment have significant effects on S&P'500 performances. The authors find that Trump's tweets should be interpreted with caution. The results also show that the number of Trump's tweets on t−1 day have a positive effect on performance on day t. Practical implications: Social media sentiment contains information for predicting stock returns and transaction activity. Since, the arrival of new information in capital markets triggers investor sentiment on social media. Originality/value: This study investigates the investors' sentiment through social media and explores quantitative and qualitative measures. The amount of information on social media reflects more the investor sentiment than content analysis measures. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2022-0818 [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
40. Guidance Certification Effect and Governance Supervision Effect of Government Investment Funds.
- Author
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Xu, Sheng, Li, Yaoxiong, and Manguet Ndinga, Durell Esperance
- Subjects
PUBLIC investments ,GOVERNMENT business enterprises ,ENTERPRISE value ,BUSINESS size ,CAPITAL market ,PANEL analysis - Abstract
The establishment of government investment funds serves as a crucial measure for governments at all levels to leverage their certification role and financial resources in attracting social capital to support enterprise development. This paper empirically examines the guiding certification effect and governance supervision effect of government investment funds on enterprise value enhancement, utilising panel data from listed companies and government investment fund investment event data spanning the period from 2011 to 2021. The research findings reveal that government investment funds significantly enhance the value of recipient enterprises. By leveraging their guidance and certification effects and governance supervision effects, these funds alleviate financing constraints, actively participate in corporate governance, and ultimately enhance corporate value. The impact of government investment funds is negatively moderated by the age and size of the enterprise, indicating that the "invest in early-stage and small businesses" investment strategy yields better results in promoting value enhancement. Furthermore, heterogeneity analysis demonstrates that government investment funds have a more pronounced impact on the value of non-heavily polluting industries, enterprises located in the eastern and southern regions of China, and non-state-owned enterprises. This article expands the research scope of government investment funds at the micro level, providing empirical evidence and theoretical support for optimising government investment funding policies and fostering the development of a modern capital market with distinctive Chinese characteristics. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
41. Probability Distributions for Modeling Stock Market Returns—An Empirical Inquiry.
- Author
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Pokharel, Jayanta K., Aryal, Gokarna, Khanal, Netra, and Tsokos, Chris P.
- Subjects
DISTRIBUTION (Probability theory) ,LAPLACE distribution ,GOVERNMENT securities ,STOCKS (Finance) ,STOCK price indexes ,BULL markets ,PRODUCT returns - Abstract
Investing in stocks and shares is a common strategy to pursue potential gains while considering future financial needs, such as retirement and children's education. Effectively managing investment risk requires thoroughly analyzing stock market returns and making informed predictions. Traditional models often utilize normal variance distributions to describe these returns. However, stock market returns often deviate from normality, exhibiting skewness, higher kurtosis, heavier tails, and a more pronounced center. This paper investigates the Laplace distribution and its generalized forms, including asymmetric Laplace, skewed Laplace, and the Kumaraswamy Laplace distribution, for modeling stock market returns. Our analysis involves a comparative study with the widely-used Variance-Gamma distribution, assessing their fit with the weekly returns of the S&P 500 Index and its eleven business sectors, drawing parallel inferences from international stock market indices like IBOVESPA and KOSPI for emerging and developed economies, as well as the 20+ Years Treasury Bond ETFs and individual stocks across varied time horizons. The empirical findings indicate the superior performance of the Kumaraswamy Laplace distribution, which establishes it as a robust alternative for precise return predictions and efficient risk mitigation in investments. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
42. Drivers, Uncertainties, and Scenarios of the Iranian Economic System.
- Author
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Shahri, Mohammad Esmaeilzadeh, Azari, Mostafa, and Ramezani, Yousef
- Subjects
ECONOMIC systems ,CAPITAL market ,ECONOMIC impact ,ECONOMIC sanctions ,DELPHI method ,UNEMPLOYMENT ,RENT seeking - Abstract
Iran's economy is founded on three main sectors: cooperative, private, and governmental. Various key documents outline objectives for each sector, highlighting certain industries with unique advantages and capacities. These industries not only have strong interconnections with other sectors but also drive demand and contribute to economic growth. This study aims to analyze and present various potential futures for Iran's economy, adopting a holistic and comprehensive perspective. It explores the key factors shaping the economy, including constructive economic drivers, significant uncertainties, and potential future scenarios, considering various influential dimensions. The research employs a qualitative scenario-based approach, structured in eight stages. Data is gathered through interviews, expert panels, and the Delphi survey method, with analysis supported by Mac and Scenario software and a wizard tool. The study identifies primary economic drivers for Iran, including economic growth, oil dependency, the impact of economic sanctions, fundamental challenges, and the level of economic openness. While other factors like high unemployment, a small capital market, rent-seeking, weak infrastructure, and corruption significantly influence the economic landscape, they are not classified as primary drivers in this study. However, these elements will be considered in developing future economic scenarios. Also, in order to prioritize solutions to deal with economic threats, it should be said that using short-term methods in the programs and executive plans of the country's institutions will be the first step to deal with threats. At the same time, planning and using solutions of higher levels, respectively, can move the country step by step in terms of structure and institutions in the direction of resilience, invulnerability and regeneration. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
43. FOREIGN DIRECT INVESTMENTS. FLOWS AND TRENDS IDENTIFYING WORLD-WIDE.
- Author
-
ANDREI, Liviu C. and ANDREI, Dalina M.
- Subjects
- *
FOREIGN investments , *CAPITAL movements , *CAPITAL investments , *CAPITAL market ,DEVELOPING countries - Abstract
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]
- Published
- 2024
44. Hidden Consequences of Consumer Protection on the Financial Market: Regulation-introduced Bias.
- Author
-
Šindelář, Jiří and Budinský, Petr
- Subjects
CONSUMER behavior ,DEPOSIT insurance ,INSURANCE ,STOCKBROKERS ,CONSUMER protection - Abstract
This paper deals with the problem of how the risk perception among retail customers is affected by the consumer protection regulation on the financial market. Through a questionnaire survey, we have measured the effect of selected consumer protection measures on banking or investment decisions taken by a young (student) population. These measures included the most common elements of financial regulation, such as bank deposit insurance, corporate bond prospectus, licenced fund management and securities broker indemnity insurance. Our results show that protective state intervention represents strong stimuli for customer decision-making with a widely misleading effect. It overshadows other factors, including individual qualification, risk-reward preference and demographic attributes, all of which were found to be insignificant. Since the surveyed measures reached a similar level of effect yet they offer different substance, this outcome has important policymaking implications. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
45. Bank Supervision and Corporate Credit Supply.
- Author
-
Ivanov, Ivan T. and Wang, James Z.
- Subjects
CAPITAL market ,BANKING industry ,BANK examination ,NONBANK financial institutions ,SHADOW banking system ,SYNDICATED loans ,CORPORATE banking - Abstract
We exploit the quasi-random assignment of federal bank examiners to syndicated loans to study the effect of supervision on corporate lending. Following supervisory rating downgrades, banks decrease credit commitments and downgrade internal risk assessments. Borrowers face larger commitment reductions whenever banks have low ex ante screening and monitoring incentives or whenever examiners' assessments contain more information than banks' assessments, suggesting that examinations complement bank monitoring. Although public firms can offset the loss of bank credit by tapping external capital markets, smaller and more opaque private firms draw on internal cash balances instead and reduce investment and sales growth. This paper was accepted by Victoria Ivashina, finance. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.4854. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
46. Decision-Making Delegation in Banks.
- Author
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Dlugosz, Jennifer, Gam, Yong Kyu, Gopalan, Radhakrishnan, and Skrastins, Janis
- Subjects
RATE setting ,BRANCH banks ,MORTGAGE loans ,HOME prices ,CAPITAL market ,BANK deposits ,DEPOSIT insurance - Abstract
Using natural disasters as shocks to local economies, we document that a bank branch's ability to set deposit rates locally has real effects. Following disasters, branches with rates set locally increase deposit rates more and experience higher deposit volumes in affected counties. Consistent with imperfect insurance from internal capital markets, banks with more branches setting rates locally relatively expand mortgage lending in affected counties. House prices recover faster in local areas where more branches' rates are set locally. This paper was accepted by Tomasz Piskorski, finance. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4856. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
47. The Earnings Management Effect of IFRS Implementation: Evidence from an Emerging Economy.
- Author
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Oyasor, Emmanuel Imuede
- Subjects
EARNINGS management ,CAPITAL market ,INVESTMENT information ,EMERGING markets ,RETURN on assets - Abstract
The issue of earnings management continues to be focus of recent research in accounting due to its implications for capital market. This study assesses the effects of IFRS adoption on earnings management for emerging economy with specific evidence based on comprehensive samples of listed firms on South Africa (SA). Using a sample of 186 listed firms, the procedure supposes a random effect estimation to examine the relationship between earnings management and considered variable, for the "prior-IFRS period (2000 to 2004)" and the "post-IFRS period (2017 to 2022)". The finding confirms significant negative effect of IFRS-adoption on earnings misreporting, suggesting that IFRS-adoption caused a reduction in earnings manipulations in SA. Moreso, book-to-market values, returns on assets and cash flow from operations significantly explains earnings management practices in SA. Lastly, the outcome is observed to be robust and not sensitive to the methods applied for the test; thus, the evidence can be used to make informed policy decisions. The findings have implication for regulation, policy making, and would boost stakeholder's interests on the capital market in the economy. We recommend that regulators should ensure regular assessment and quality audits of firms' reports, as such would enhance the integrity of represented financial information and protect investor's funds. [ABSTRACT FROM AUTHOR]
- Published
- 2024
48. Capital market effects of corporate transparency and sustainability: evidence from an emerging economy.
- Author
-
Ko, YoungKyung, Subramaniam, Ravichandran, and Devi, Susela
- Subjects
ORGANIZATIONAL transparency ,AUDITOR-client relationships ,CAPITAL market ,ENTERPRISE value ,EMERGING markets ,SUSTAINABLE development reporting ,CORPORATE sustainability ,INVESTORS ,CORPORATION reports - Abstract
Purpose: The study aims to examine the association between corporate transparency and firm value (capital market effect) and investigate whether auditor choice moderates this relationship. Design/methodology/approach: This study uses the Malaysian Institute of Corporate Governance (2017) data set, which provides scores on anti-corruption commitment, organisational transparency and sustainability of Malaysia's top 100 listed firms. The methodology entails an ordinary pooled least square regression method for empirical research. Findings: The positive association between corporate transparency and firm value is more evident in anti-corruption and sustainability initiatives. More importantly, government-linked companies have higher scores. Firms with enhanced anti-corruption commitment are more likely to have higher firm value, and this relationship is more evident for politically connected firms. This study also finds that auditor choice is associated with the firm value in the sampled listed firms. Practical implications: The findings provide implications for investors and regulators on the role of corporate transparency in an emerging capital market. Social implications: The study recommends that emerging market regulators continue enhancing corporate governance codes and practices to improve reporting transparency for listed firms. Originality/value: This study contributes to the growing literature on sustainability disclosures by incorporating corporate reporting transparency, explicitly relating to firms' commitment to anti-corruption, organisational transparency and sustainability. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
49. Sustainable board governance and environmental performance: European evidence.
- Author
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Velte, Patrick
- Subjects
BOARDS of directors ,SUSTAINABLE investing ,CORPORATE governance ,EXECUTIVE compensation ,CAPITAL market ,ENVIRONMENTAL reporting - Abstract
The ambitious EU Green Deal project is linked to extensive regulations on sustainability reporting, sustainable finance, and sustainable corporate governance. With increasing awareness of the impact of sustainable board governance on corporate environmental performance, our paper includes an innovative sustainable board governance score, reflecting significant board attributes. The question arises whether the combined effect of sustainable board measures, based on (1) sustainability board committees, (2) a critical mass of female board members, and (3) sustainability‐related executive compensation, influences environmental performance and its main sub‐pillars according to the EU Taxonomy Regulation. Based on stakeholder and critical mass theories, our study empirically addresses the impact of sustainable board governance on environmental performance and five sub‐pillars (carbon, emissions, biodiversity, resource use, and water performance). Using a sample of 2630 firm‐year observations from 2014 to 21, we find that sustainable board governance significantly improves environmental performance and the related sub‐pillars, except for biodiversity and water performance. Our findings are robust to robustness analyses and endogeneity checks. To the best of our knowledge, we are the first to rely on the combined effect of sustainable board attributes and its impact of environmental performance and its major sub‐pillars. Thus, this study provides new insight into the relationship between corporate governance and environmental performance in the EU capital market to guide researchers, business practice, and regulatory bodies. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
50. The power of financial support in accelerating digital transformation and corporate innovation in China: evidence from banking and capital markets.
- Author
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Du, Zhuoya and Wang, Qian
- Subjects
DIGITAL transformation ,CAPITAL market ,BANK capital ,DIGITAL technology ,BANK marketing ,DIGITAL libraries ,CORPORATE banking ,ONLINE banking - Abstract
This study explores the role of financial support in the digital transformation of Chinese A-share-listed companies from 2001 to 2020. By utilizing the moderating effect model and threshold regression model, this study finds the following results: (1) Digital transformation positively impacts innovation, and the support of banking and capital markets further strengthens this impact. (2) With the development of banking and capital markets, the impact of digital transformation on innovation changes from negative to positive, which is also reflected in the subsamples of Eastern companies, small and medium-sized companies (SMEs), and non-SMEs. (3) The study reveals that only the capital market in the non-Eastern region has no threshold, and capital market support is effective only for non-SMEs when it reaches a higher level. These findings have important implications for policymakers in promoting digital transformation through financial support and help companies understand how to use financial support to improve competitiveness. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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