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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 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]

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]

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]

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]

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]

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]

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]

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]

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 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]

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]

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]

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]

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]

Purpose: The growth and development of defence industries are essential to improve deterrence and national security. One way to develop such industries is to acquire technology-based firms that, in addition to improving the ability to manufacture new products, can help them meet their operational and strategic goals. Since the valuation of such firms is considered one of the complexities of acquisition, this paper aims to propose a model for their valuation according to the ecosystem of defence industries. Design/methodology/approach: To create the model, first the literature in this field has been investigated. Also, the comments and proposals of senior managers, technical designers and experts, economic and financial specialists, and R&D experts in the defence industries have been surveyed and then, the valuation criteria for technologybased firms have been identified using the fuzzy screening technique. Next, by using the fuzzy Analytic Hierarchy Process (AHP), the relative importance coefficients for components, criteria, and subcriteria have been determined, and the valuation model has been developed. Finally, the function of estimating the value of technology-based firms that can be acquired in the Department of Defense (DOD) has been formulated. The study was carried out at the end of 2022 in DOD strategic organizations. Findings: Since knowledge and intellectual properties are the most significant pillars and competitive advantages of technology-based firms, the results showed that the “intangible assets” criterion is the most significant one for the valuation of firms by a weight of 0.449. Following the criterion are the tangible assets, and the major risks with a weight of 0.351, and 0.20, respectively. In this study, the strategic role and importance of technology-based firms for the defence industries, their synergy with these industries, the protection requirements, as well as the stability and durability of the technologybased firms in the condition of disruption were introduced as specific criteria in the valuation model for the firms. Also, the result of the sensitivity analysis indicated that the ranking of options is the most sensitive subject to changes in the importance and weight of intangible assets and the main risk. Research limitations/implications: One of the limitations of the research is that this study was not conducted in a specific defence industry such as electronics and radar, energy-rich materials, chemical, air, or marine industries, and was comprehensively planned in all industries. Since tangible, and intangible assets or even risks may be different in each of such industries, this issue leads to the cautious use of the model in each of these specialized areas. Another limitation was the research statistical population, which only included university professors, senior managers and financial managers of defence industries. Although using the opinions of capital market valuation experts venture capitalists and expert valuation experts of the country's innovation and knowledge ecosystem for further validation of the model and criteria statistics and to specify the specific conditions of valuation in the defence environment, seemed useful, there were limitations in their assessment. Originality/value: Proposing a hybrid model including tangible and intangible assets and considering risks, and also considering the key criteria of the defence sector such as strategic importance, synergy stability and durability of firms, as well as providing functions for estimating the value of technology- base firms that can be acquired in DOD are considered as the two of the most important aspects of contributions and innovations of this research. The current model provides a systematic and scientific plan for defence industry managers and experts who can use it in the valuation of companies that can be acquired in the defence industry and be sure that their interests are taken into account. [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]

This study has been conducted to identify the impact of publicly offered companies in the BIST Technology sector on the index. The aim is to contribute to the development of more informed and effective strategies for investors in their future investment decisions. Focusing on 12 businesses that went public on the BIST Technology index in 2021 and 2022, their initial public offering (IPO) dates have been considered as event days. The relationship between index returns and these dates has been evaluated through an Event Study methodology. The analysis has revealed that, particularly in 2022, IPOs of businesses had a significant impact on index returns and the number of abnormal returns during this period was high. This finding helps to better understand the influence of IPO processes and developments in the technology sector on capital markets. [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 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]

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]

I study the social efficiency and aggregate effects of equity home bias using a general equilibrium model with nominal rigidities and a fixed exchange rate. I find that the source of home bias is key for analyzing the wedge between equilibrium and socially optimal levels of home bias. Surprisingly, when home bias is due to labor income hedging effects, stock positions tend to be approximately efficient despite the aggregate demand externalities induced by the rigidities. On the other hand, home stock positions are excessive when home bias is due to financial frictions or biased expectations. The key theoretical results hold numerically well in a more general quantitative model. [ABSTRACT FROM AUTHOR]

On the capital market, price movements of stock corporations can be observed independent of overall market developments as a result of company-specific news, which suggests the occurrence of a sudden risk event. In recent years, numerous concepts from statistical physics have been transferred to econometrics to model these effects and other issues, e.g., in socioeconomics. Like other studies, we extend the approaches based on the "buy" and "sell" positions of agents (investors' stance) with a third "hold" position. We develop the corresponding theory within the framework of the microcanonical and canonical ensembles for an ideal agent system and apply it to a capital market example. We thereby design a procedure to estimate the required model parameters from time series on the capital market. The aim is the appropriate modeling and the one-step-ahead assessment of the effect of a sudden risk event. From a one-step-ahead performance comparison with selected benchmark approaches, we infer that the model is well-specified and the model parameters are well determined. [ABSTRACT FROM AUTHOR]

Inattention of economic policymakers to default risk and making inappropriate decisions related to this risk in the banking system and financial institutions can have many economic, political and social consequences. In this research, it has been tried to calculate the default risk of companies listed in the capital market of Iran. To achieve this goal, two structural models of Merton and Geske, two machine learning models of Random Forest and Gradient Boosted Decision Tree, as well as financial information of companies listed in the Iranian capital market during the years 2016 to 2021 have been used. Another goal of this research is to measure the predictive power of the four models presented in the calculation of default risk. The results obtained from the calculation of the default rate of the investigated companies show that 50 companies listed in the Iranian capital market (46 different companies) have defaulted during the 5-year research period and are subject to the Bankruptcy Article of the Iranian Trade Law. Also, the results obtained from the ROC curves for the predictive power of the presented models show that the structural models of Merton and Geske have almost equal power, but the predictive power of the Random Forest model is a little more than the Gradient Boosted Decision Tree model. [ABSTRACT FROM AUTHOR]

Municipal bonds are a financial instrument once largely limited to North America. Today, they are appearing in international development reports as a novel best‐practice for closing the world's infrastructure funding gap and for promoting democracy. Critics of financialization have argued that municipal bonds have had the opposite effect: they have deepened austerity, ceded control of democratic municipalities to the global financial industry, and depoliticized public decision‐making. Yet in this article, I observe a relationship between democracy, politics and finance which contrasts with the now common uses of 'financialization' popularized by critical scholars in Euro‐American universities. I argue that, elsewhere in the world, capital markets have come to be understood as an important element of democratization. To make this argument, I develop the concept of 'financial publics'—a group of strangers participating in a reflexive and reciprocal style of address through which they negotiate their financial relationships with one another. Using this concept, I analyze data drawn from over two years of ethnographic research on one of the most noteworthy experiments in municipal finance in the global South: the City of Dakar's failed attempt to issue the first ever municipal bond on the Regional Stock Exchange of West Africa. [ABSTRACT FROM AUTHOR]

This study empirically tests the effect of stock risk warning of listed companies on the risk of stock price crash of non-warning companies in the same industry and its mechanism in the Chinese A-share listed companies from 2008 to 2021 as samples. The research results show that the risk warning information has a capital market governance effect on peer companies, that is, the new risk warning information in an industry will alleviate the risk of stock price crash of peer companies. This conclusion remains robust after a series of robustness and endogeneity tests. The mediating mechanism test shows that the idiosyncratic information content of the stock price mediates the process of risk warning information affecting the risk of stock price crash of peer companies. The heterogeneity test shows that the governance effect of risk warning information on the risk of stock price crash of peer companies is more significant when the problem of company agency is more serious, the competitive market position is lower, or the differences in opinion among investors are smaller. This study provides empirical evidence for the necessity of the existence of the risk warning system. Additionally, it provides a reference for the capital market risk supervision of similar transition economies such as China. [ABSTRACT FROM AUTHOR]

Purpose: The authors present a study of the short-term impact of the Russian–Ukrainian war on global equity returns. The study aims to show that the conflict was priced into markets and whether the intensity of the impact depends on economic factors, such as dependence on gas, or/and political factors, such as belonging to the former Soviet power circle. Design/methodology/approach: Using the event study and a sample of 77 capital markets, accounting for over 99% of global capitalisation, the authors apply a system of seemingly unrelated regressions to the daily returns of the indices, isolating the short-term effect on the markets and finally apply cross-sectional methods to help determine the size and variability of the impact. Findings: The authors show that the impact is concentrated around day zero but is relevant in the days before and after. In addition, the authors show that being in the Soviet orbit and NATO simultaneously, as well as having high gas consumption and importing gas from Russia were key factors for investors. Originality/value: This study is the first to try to discern whether the impact on stock markets caused by the war in Ukraine is due to purely economic factors, especially energy, or whether there is also a geopolitical component. Specifically, whether the countries closest to Russia are being more threatened by the fact that they are closer to Russia. [ABSTRACT FROM AUTHOR]

This research paper provides a comparative analysis of the legal frameworks governing the delisting of issuer shares in Indonesia, the United States, and Singapore. Using a normative legal research approach, supplemented by interviews with members of the Financial Services Authority (OJK) and a Member of the House of Representatives Commission XI, the study explores how each jurisdiction addresses the delisting process, particularly focusing on the protection of minority shareholders . The analysis reveals that Indonesia's legal system, influenced by its Civil Law heritage, contrasts with the Common Law approaches of the US and Singapore, especially in terms of shareholder involvement in voluntary delisting and the specificity of conditions for forced delisting. The study suggests enhancements to the Indonesian framework, such as clearer guidelines for shareholder approval in delisting decisions and more transparent criteria for forced delisting. These recommendations aim to improve the protection of minority shareholders within Indonesia's Capital Market. [ABSTRACT FROM AUTHOR]

A higher efficient capital market and direct financing environment are key to excellent enterprise performance and high-quality economic development in China. In recent years, institutional investors have gradually significantly impacted market information efficiency, while the existing studies still offer different conclusions. Given this, firstly, we chose the social network analysis as the study method, taking the open-ended equity mutual funds in the A-share stock market from 2010 to 2019 as samples, constructing the shareholding networks by taking the top ten bulk-holding stocks in every sample fund's annual report as the connection. Then, we chronologically reveal the characteristics of those networks, such as scale, density, centrality, and so on. Lastly, we empirically test the influence of the institutional investors embedded in the shareholding networks on the information efficiency, and so does the robustness check. The results show that the shareholding networks are gradually expanding in scale and increasing in density. Furthermore, institutional investors can improve stock price informativeness and promote market information efficiency through a shareholding network, and the higher the network location of institutional investors, the greater the information effect. The conclusions based on the systemic view not only enrich the research on the information function of institutional investors, broaden the field of social network theory, but also provide guidance for regulating institutional investors and improving market transparency. [ABSTRACT FROM AUTHOR]

Information transparency plays a vital role for developing capital markets. Using data of A-share listed companies from 2007 to 2020, this study examined the impact of customer concentration on corporate information transparency from a supply chain perspective. It suggests that a significant negative correlation exists between customer concentration and information transparency. Customer concentration affects the quality of corporate information disclosures. Through the mechanism test, the impact of customer concentration on corporate information transparency is based on the risk effect rather than the substitution effect of private information on public information. Research on regulatory effects points out that a poor internal information environment aggravates the negative relationship between customer concentration and information transparency. However, media supervision and a higher marketization process alleviate the adverse effects of customer concentration on information transparency. This study indicates that firms with a higher customer concentration have a higher risk of information disclosure, which provides a reference point for investors for making investment-related decisions and for the capital market supervision department for formulating information disclosure policies. [ABSTRACT FROM AUTHOR]

In this contribution, we make the case for the introduction of uniform rules on liability for incorrect or incomplete prospectuses relating to financial instruments offered in the European Union (EU). We set out the reasons for such uniformisation, in particular the need to complete the Capital Markets Union, the insoluble conflict-of-laws problems created by prospectus liability, and the discriminatory treatment of investors resulting from the application of different national laws to the issue. We show that uniform rules are possible, drawing a parallel to the recently adopted Markets in Crypto-Assets Regulation (MiCAR) and other EU texts. We also demonstrate that the EU has the competence to adopt such rules, and that concerns about subsidiarity and proportionality are unfounded. [ABSTRACT FROM AUTHOR]

Financial auditing is one of the cornerstones of an effective capital market structure. When performed correctly, an independent financial audit provides investors with the security they need to effectively transact based on company disclosures. When this system fails, however, the results for investors and the economy as a whole can be devastating. In recognition of this danger, the market for financial auditing in the United States is regulated by a number of governmental and nongovernmental bodies charged with maintaining its health and effectiveness. But stakeholders within the U.S. market and government have criticized these regulators for failing to adequately respond to concerns lurking in the country's financial auditing system. While audit reform can be an expensive and convoluted process, this Note argues that U.S. regulators can streamline the field's development by monitoring and building upon the actions taken by U.K. regulators. This Note describes the current audit regulatory structure employed by the United States and examines the most pressing concerns expressed by interested parties. It then analyzes the findings and proposals offered in the U.K. Competition and Markets Authority's comprehensive report on competition and audit quality in the U.K. financial auditing market. This Note proposes that the conclusions of the Competition and Markets Authority's report should serve as both a warning and a guide for domestic audit regulators. The United States is past due for a comprehensive examination of their financial auditing system. Using the U.K. findings as a guide will provide more immediate and relevant data for policymakers and regulators alike. [ABSTRACT FROM AUTHOR]