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We examine the association between margin requirements and the market's efficiency in incorporating firm-specific and market-level public news. Combining the Fed's 22 changes in margin requirements with a hand-collected sample of earnings announcements between 1934 and 1975, we show that higher margin requirements induce greater delay in incorporating earnings information into prices. We draw similar conclusions when we analyze the Hou and Moskowitz (2005) price delay measure, as well as indirect measures of leverage constraints over recent years. Further tests suggest that, despite the Fed's expressed intent to curtail excess speculation, higher margin requirements restrict trading by arbitrageurs more than noise traders. [ABSTRACT FROM AUTHOR]

The present study to review the online trading procedure a case study of online trading at iifl ltd., as the exchange has changed its trading from it and there is need to assess the performance of the capital market. Maintaining good records requires discipline, just like good trading. Unfortunately, many commodity traders don't take the time to track their trading history, which can offer a wealth of information to improve their odds of success Most professional traders, and those who consistently make money from trading commodities, keep diligent records of their trading activity. The same cannot be said for the masses that consistently lose at trading commodities [ABSTRACT FROM AUTHOR]

ESGs, or sustainable business practices, are becoming more and more popular as more stakeholders, regulators, and investors want to conduct business in a way that helps address urgent global issues like environmental degradation, climate change, ethical supply chains, and global well-being. Consequently, while making investment decisions, environmental, social, and governance (ESG) factors are given more weight in the operational and strategic objectives of the organization. The purpose of this research is to determine the relationship between a company's financial success and market value and its environmental, social, and governance (ESG) performance. This research uses financial performance as a mediating impact and integrates the risk mitigation element, which is the foundation of sustainability. Data from publicly traded businesses on the Indonesia Stock Exchange with ESG risk from Sustainalytics and ESG ratings from Refinitiv were used in the study. Purposive sampling was the sampling approach utilized to acquire 48 observation firms for empirical testing. The results indicate that only the individual environmental ESG score has a positive and significant impact on financial performance and company value, whereas the composite ESG score has a positive and substantial impact on financial performance. The finding of this study is that the improvement of corporate ESG performance can increase corporate value, and corporate financial performance provides an obvious mediating effect. The findings further show that low-risk ESG scores have an impact on increasing firm value with financial performance as the mediation. [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]

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

Optimal investment in today's competitive market demands well-informed decisions by astute investors within the capital market. These decisions focus on identifying and prioritizing key factors influencing investor decision-making behavior. In this context, the present study is designed to explore the impact of mass media news on the decision-making styles of investors in the Tehran Stock Exchange. These decisionmaking styles include avoidant, dependency, spontaneous, intuitive, and rational approaches and their relationship with investors' level of risk tolerance. This research follows an experimental foundation approach regarding its objectives, nature, and execution methodology. It takes the form of a descriptive survey, with data collection carried out through administering a questionnaire. The questionnaires were distributed among investors selected via random sampling from the statistical population, encompassing all investors with a stock code on the Tehran Stock Exchange. Structural Equation Modeling (SEM) was employed to test the research hypotheses. The findings of this study reveal that mass media news exerts a positive and significant influence on avoidant, dependency, and spontaneous decision-making styles, contingent on the degree of risk tolerance of the investors. In contrast, mass media news does not significantly impact intuitive and rational decision-making styles relative to the investors' level of risk tolerance. [ABSTRACT FROM AUTHOR]

Theoretical background: High levels of cash holdings allow companies to be financially flexible. Cash holders can react to business opportunities at once, and avoid dependence on external financing. Having cash reserves acts as a protective cushion from possible business shocks. However, cash holdings, like other asset items, incur cost. The direct costs mostly relate to obtaining and servicing of financing. Excessive cash may also induce the agency problem of free cash flow. Information asymmetry, among other factors, influences cost of capital and the efficiency of investor monitoring. Earnings management strategies are related to the informativeness of financial reports, as they can either support or disturb the assessment of company risk and performance. Hence, companies search for tailor-made strategies that usefully trade-off the benefits and costs of cash reserves and earnings quality. Purpose of the article: Earnings management occurs either via intervention in the reporting process using accruals, or changing the structure or the timing of real business transactions. This study aims to assess the differences in accrual and real earnings management strategies between firms with relatively high and low cash reserves. Based on a sample of non-financial companies listed on the Warsaw Stock Exchange in Poland, this research provides evidence on the relationship between the level of cash holdings and earnings quality. Research methods: Earnings management is proxied with annual cross-sectional regressions estimated in non-financial GICS sectors. The Jones and the modified Jones model allow to estimate expected accruals. Using the Roychowdhury approach, normal cash flow from operations, normal production costs, and normal discretionary expenses are estimated. These normal levels are compared with their actual value to proxy for accrual- and real-earnings management. Next, each company was assigned to one of two groups, depending on the level of cash holdings relative to the annual industry medians. Parametric and non-parametric tests were used to test statistical significance. Main findings: The empirical results show statistically significant differences in accrual and real earnings management between companies with relatively high and low cash reserves. Cash holders seem to be more likely to manage earnings via shifting accruals between periods. However, there is no evidence that any of the groups boosted earnings more. Unsigned earnings management proxies suggest lower informativeness of financial reports for companies with cash buffers. Cash holdings were positively related to activities aimed at reducing fixed costs per unit and savings on discretionary expenses. Summing up, this research shows that companies with greater information asymmetry related to poor earnings quality preferred to hold larger cash reserves. [ABSTRACT FROM AUTHOR]

The analysis of the current state and identification of problems of foreign investment in Ukraine are related to various factors and aspects, including the instability of the economic environment, insufficient development of the legal framework, etc. Therefore, the study aims to analyse the circulation/use of securities and identify problems and opportunities for the development of the Ukrainian stock market. To achieve this goal, various scientific methods were used, including synthesis and analysis, formal legal and other methods. It is established that due to the implemented reforms aimed at modernisation, the financial market of Ukraine is open to investors and has expanded opportunities compared to the past. It is noted that the war initiated by Russia has led to a significant increase in the investment gap between Ukraine and other countries. It is emphasised that new measures are needed that have the potential to contribute to economic recovery in the future and strengthen its resilience to possible economic shocks. To ensure the efficiency of the investment process, it is proposed to use the most appropriate and effective strategies that should be included in the provisions of the Resolution of the Cabinet of Ministers of Ukraine "On Approval of the State Strategy for Regional Development for 2021-2027". The author proposes an integrated mechanism for attracting foreign investment, which provides for the establishment of a favourable investment climate and intensification of investment activity. Recommendations that can be used to improve legislation on attracting foreign investment in securities have been formulated and substantiated. These proposals may be useful for the practical activities of state authorities aimed at supporting foreign investment in securities in the current stock market of Ukraine. [ABSTRACT FROM AUTHOR]

This study examines the influence of firm characteristics on the extent of sustainability reporting among listed companies in Tanzania. Data was collected from the annual reports of companies listed on the Dar es Salaam Stock Exchange (DSE) spanning the period from 2016 to 2021 resulting in a panel data set of 130 firm-year observations. These were analysed using both Ordinary Least Squares (OLS) and Random Effects (RE) regression model techniques. The results indicate that the size of a firm and the presence of a sustainability committee have a significant positive relationship with the extent of sustainability reporting. In contrast, the age of a firm exhibits a significant negative relationship with the extent of sustainability reporting. Additionally, financial metrics namely liquidity, gearing, and profitability as well as audit quality did not show any significant relationship with sustainability reporting. The findings suggest that large and young firms are more inclined to adopt extensive sustainability reporting than their counterparts and challenge traditional assumptions about the influence of financial attributes. This implies that regulators such as DSE and Capital Markets and Securities Authority (CMSA) should persist in encouraging smaller companies to keep enhancing their sustainability reporting, supporting older firms in improving their reporting practices and fostering awareness about the benefits of sustainability reporting across all listed entities. Similarly, DSE and CMSA may require listed firms to establish sustainability committees on the boards of directors to enhance sustainability reporting disclosure. [ABSTRACT FROM AUTHOR]

The main purpose of this article is to assess the potential implications of machine learning in making investment decisions when investing capital in stock markets. The analysis carried out focuses on the so-called day-trading, i.e., investing for very short periods of time, covering only one stock market session. The hypothesis adopted by the authors is that the use of machine learning can, under certain conditions, effectively contribute to attractive rates of return for players making short-term investments. The study used Microsoft Machine Learning Studio's Azure tool to enable machine learning-based computing. Thanks to this publicly available computing platform, any potential interested investor can create a model and test it. An important assumption of the described study is the adoption of a short investment horizon for the calculation. The calculations used data from five stock market sessions, so that the most recent data is taken into account. Based on the calculations, the authors observed that the methodology adopted for applying machine learning to investment decision-making can be a valuable tool to help make short-term investment decisions. The research made can be used in a practical way by investors when they transact in the stock market. It should be noted that the presented method requires updating the data on which the predictions are made every time. Further in-depth research is also needed to determine the impact of the number of financial instruments on the effectiveness of the learning process. [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]

Purpose -- The objective of this study is to examine the factors that impact the value of a company over both the short and long term. These factors include variables such as the company's size, the reputation of the underwriter and auditor, the industry sector in which it operates, and the number of shares outstanding during the initial public offering (IPO). Method -- In this study, a quantitative causality approach with analytical properties is employed as the method of analysis. The population under investigation consists of companies that conducted initial public offerings (IPOs) between the years 2020 and 2022. A sample size of 113 companies is selected using a specific sampling approach for research purposes. To analyze the data, a binary logistic regression model is applied, along with the use of statistical tools. Result -- The conducted research has yielded several findings. Firstly, it indicates that the variable of company size does not have a significant impact. Secondly, the variable of underwriter reputation also does not have a significant effect. Thirdly, the variable of auditor reputation does not significantly influence firm value. Fourthly, the stock variable does not significantly affect firm value. Lastly, the research highlights that the industry sector variable has a significant impact on firm value. Contribution -- The research is expected to contribute to the academic field and benefit capital market players by addressing the factors that should be considered when making investment decisions in the capital market. [ABSTRACT FROM AUTHOR]

This article aims to analyze the role and responsibility of the state through the Financial Services Authority and the Indonesia Stock Exchange in monitoring misleading company prospectuses and legal remedies that can be taken by investors if they suffer losses due to misleading prospectuses. The method used in the research is juridical normative to analyze the application related to the legal position of the prospectus as a way to fulfill information disclosure, and to obtain a complete picture of information disclosure through a prospectus that must be supervised by the Financial Services Authority and the Indonesia Stock Exchange, where if misleading is found in the prospectus which at any time can cause losses, investment actors can take criminal, civil, and administrative sanctions, in addition to investment actors can also pursue dispute resolution through alternative institutions outside the court that have been accommodated by Indonesian positive law. [ABSTRACT FROM AUTHOR]

With transaction-level market data for stocks in China A-share markets, the authors construct individual stocks' kernel functions of market impact and analyze their statistical properties. Attribution analysis of such kernel functions is also performed to understand how market microstructure variables such as bid-ask spread and liquidity distribution in order books can be used to classify different groups of kernel functions. The authors' analysis shows that stocks in China A-share markets exhibit clear patterns of market impact curves, which is likely due to specific market structure regulations such as constant tick size across different stocks and stock-specific order book dynamics resulting from market participants' behaviors. The authors also explore the application of kernel functions in forecasting price movement in close-to-reality trading simulators that consider market impact costs at individual trade level. [ABSTRACT FROM AUTHOR]

Theoretical background: According to many behavioural studies, emotions (e.g. fear, greed, overenthusiasm) strongly influence investment decisions and are one of the main sources of irrational behaviour. Purpose of the article: The study aims at investigating the impact of fear related to the COVID-19 crisis on sector indices on the stock market, in the face of anticipatory restrictions imposed by the authorities. The paper illustrates the investors’ decisions affected by fear. Research methods: The empirical study includes statistical analyses, in particular an analysis of the coefficient of variation. Main findings: The highest increase in the implied volatility index, which is used as a proxy of fear, is noted for the period of uncertainty (before the decisive reactions of government), during which, investors’ reactions are the most strongly related to fear and the negative sentiment affects all the sectors. [ABSTRACT FROM AUTHOR]

The main intention of this study is to use the accounting data using CAPM to determine the stock prices/returns for the Nigerian capital market. In this study, the independent variable is the prediction of the stock prices and the dependent variable is stock prices in the market. The proxy that is used in this study to measure the dependent variable is CAPM in Nigerian Market. The most important and interesting phenomenon to investors is the analysis from financial market pertaining to stock returns. The research method employed is quantitative which is unlike qualitative as a way of assessing the stock price. The study mainly aims at assessing the correlation of beta factors and the predictability of stock returns from Nigerian firms listed on the stock exchange. In order to boost the beta estimates and mitigate statistical problems resulted from incorrect measurement, the securities were combined into portfolios. In conclusion the study employs ordinary least squares (OLS) regression technique and obtained beta value which is positive and found conclusive evidence for using CAPM and is thus consistent with Nigerian stock market prices. The CAPM has implications for asset pricing since it shows how to calculate the requisite rate of return to assess the value of the stock prices with any given amount of systematic risk (beta) and since the beta is positive hence the policy makers and investors in the Nigerian stock market would make better informed decisions. [ABSTRACT FROM AUTHOR]

In this study, the author investigates the positive spread between option-implied and realized volatility (i.e., variance risk premiums) for dividend versus non-dividend-paying stocks. The author finds, unconditionally, dividend-paying stocks have lower implied volatilities and variance risk premiums compared with nonpayers. However, using subsamples based on implied volatility levels, the author documents that dividend-paying firms have higher conditional variance risk premiums relative to nonpaying firms. Stated differently, for the same level of implied volatility, the spread between implied and future realized volatilities is higher for firms that pay dividends compared with firms that do not. Multivariate tests suggest this result is not explained by option-implied skewness and kurtosis, a proxy for option mispricing, and fundamental risk factors. The results suggest that traders can generate higher risk-adjusted returns from shorting options on dividend-paying firms relative to nonpayers and investors should adjust dividend-paying firms' implied volatilities down more compared with non-dividend-paying firms' implied volatilities before performing portfolio optimizations. [ABSTRACT FROM AUTHOR]

This study examines the performance and performance persistence of US-listed exchangetraded funds (ETFs) that are focused on the European capital markets. Performance is estimated in several ways--raw returns, alphas from single-factor and multifactor regression models, and risk-adjusted returns. The sample includes 43 ETFs, and the study period spans from January 1, 2015, to December 31, 2022. The results reveal that, on average, the examined ETFs cannot beat the S&P 500 Index and STOXX Europe 600 Index, which serve as proxies for the US and European stock markets, respectively. In addition, the results show that the performance of the Europe-focused ETFs does not persist. [ABSTRACT FROM AUTHOR]

As external governance factors, institutional investors' governance mechanisms and governance effect have been focus areas of research. Based on the data of A‐share listed companies in the Shenzhen Stock Exchange from 2013 to 2019, this study discusses the impact of institutional investors' site visits on capital market information efficiency. The study finds that institutional investors' site visits can significantly reduce stock price synchronicity, indicating the potential of site visits to improve capital market information efficiency. Market attention can play an amplifying role in the relationship between institutional investors' site visits and stock price synchronicity, which manifests as their sensitivity enhancement. Further, institutional investors' site visits are more effective for reducing stock price synchronicity in non‐state‐owned enterprises and those in areas with low marketization. Moreover, institutional research increases information asymmetry between investors. This study demonstrates the positive role of institutional research from the perspective of capital market information efficiency and confirms the effectiveness of institutional investors as external governance factors. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Ekonomi Syariah Teori dan Terapan is the property of Universitas Airlangga 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.)

The purpose of this paper is to shed light on the impact of the rising terrorist threat on the performance of a small capitalization market – the Tunisian stock market-. Using an event study methodology as well as conditional volatility, we investigate the impact of recent terrorist attacks in Tunisia on the general index TUNINDEX and sector indices. Our main findings are as follows. First, we find that terrorist attacks negatively affect the Tunisian stock market. However, the decline – considerable in certain cases- is short-lived: the market recovers from terrorist shocks in one day. Second, Oil and Gas, Insurance and Telecommunications, are the most affected sectors. Third, different terrorist tactics have varied effects on the stock market that leads us to conclude that attack type, weapon type, target type, and severity of the attack may determine the market's reactions. [ABSTRACT FROM AUTHOR]

Shattering the all-time high record of $68.15 billion set by AT&T in April 2000, Alibaba became the world's largest IPO, raising $169.4 billion at the New York Stock Exchange in September 2014. Using this outstanding case, the underlying drivers for foreign IPO success were explored. Four propositions are elaborated on: (1) companies choose the capital market with the institutional environment accommodating their internal characteristics, thereby taking advantage of the institutional differences between home and host countries to facilitate their development strategy; and (2) companies' IPO success is largely driven by the industry growth potential, fundamentals, and strategic alliances. [ABSTRACT FROM AUTHOR]

Financial globalisation has given issuers more freedom to carry out jurisdiction shopping. As a policy response, a growing number of stock markets have introduced the dual-class share structure to enhance global competitiveness. However, does the dual-class share structure help stock markets attract issuers? It is a question rarely examined empirically in existing scholarly work. This paper explores the practices of three jurisdictions with global financial centres, ie the US, China and Hong Kong, to narrow the research gap. Based on hand-collected data, it explains the infrequent listings with the dual-class share structure in China and Hong Kong in the post-reform era in two ways: low demand due to the use of substitutes; and limited allowance caused by the harsh ex ante regulation, and is the first comparative quantitative study in this field. Drawing on the empirical lessons, this paper recommends that China relax its ex ante regulation and suggests the wider community consider the necessity of introducing the dual-class share structure and the balance they aim to achieve between investor protection and market openness. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic had a negative impact on the volatility of the stock market in the ASEAN region. Mass vaccination and strictness policies are government efforts to tackle stock market losses. Hence, this study aims to examine the effect of the COVID- 19 vaccination and the stringent government policies on the volatility of stock markets in ASEAN countries. We collected the daily index prices, the number of vaccines, and the stringency index from 13 January 2020 to 31 August 2021. Using the GJR-GARCH model (1, 1) and Generalized Least Square regression, this study found that the mass vaccination had a negative effect on stock market volatility, whereas the government’s stringent policies had a positive effect. Mass vaccination tends to increase the confidence of economic actors, impacting investors’ confidence in the stability of the stock market. Meanwhile, the government’s strict policies have caused uncertainty among economic actors and investors regarding the economic prospects during the pandemic, leading to high levels of volatility. Therefore, governments must promote more aggressive vaccination policies, thereby reducing stringent policies for economic agents. [ABSTRACT FROM AUTHOR]

Restructuring of Australia's electricity supply industry during the 1990s led to two clear lines of business emerging, (i). regulated utilities (i.e. poles & wires), and (ii). merchant utilities (i.e. competitive generation and retail). There are dozens of utility businesses in Australia but only four were listed on the Australian Stock Exchange — two regulated and two merchant. Over the past decade the Australian Energy Regulator entered a 'tightening phase' vis-à-vis Opex and Capex allowances, with regulated utilities arguing regulated rates of return were sub-optimal. In this article, earnings, dividends and market valuations of Australia's ASX-listed regulated and merchant utilities are analysed over the period 2007–2021. The practical evidence is Australia's regulated utilities avoided the large swings in earnings that characterised merchant utilities, exhibiting outcomes consistent with the lifecycle theory of dividend policy (i.e. falling cost of capital). Soaring valuations culminated in the simultaneous takeover events of Australia's two ASX-listed regulated utilities. This makes criticisms of regulatory policy on rates of return hard to reconcile, at least from an historic perspective. However, the industry now faces a very different trajectory and set of market conditions — rising rates, higher inflation and an unwinding of lifecycle theory effects given substantial network investments required to meet climate change objectives. This may in turn require returns policy recalibration. Unfortunately for policymakers, all regulated utilities have now been delisted, ending our ability to observe 'real' capital market responses to regulatory change. [ABSTRACT FROM AUTHOR]

Between 2007 and 2021, several South American companies carried out IPOs outside their home countries, with the subsequent overseas primary listing of their shares on U.S. stock exchanges. The acceleration of this trend from January 2018 (with the IPO of PagSeguro Digital Ltd. on the New York Stock Exchange--NYSE) is not explained solely by the possibility of adopting dual-class shares structure for companies listed on U.S. stock exchanges. In this sense, factors such as: (1) biases and subjectivities in the decision-making process; (2) cultural proximity and history of successful precedents; (3) better valuation in comparison with local markets; and (4) access to global markets, sophisticated investors, and reputation; were found to be key explanatory elements for this wave of IPOs and overseas primary listings on U.S. stock exchanges, especially Nasdaq. This Article concludes that this trend, which Brazilian companies mainly carried, can be replicated or accelerated in other specific sets of countries if more advanced conditions are fulfilled in their private equity and venture capital industry. The U.S. markets provide an attractive level of know-how for its participants and scale, resulting in a better valuation of technology companies. This is particularly important for companies that cannot rely on thriving capital markets where they concentrate their operations. [ABSTRACT FROM AUTHOR]

Finance plays a major role in discussions about state capitalism in emerging markets, but the focus has so far been on banks. Capital markets have been neglected. Moreover, findings from the growing literature on financialization in emerging markets indicate that in some cases there is increasing state involvement in the development and functioning of capital markets. Hence, the relationship between the state and finance in these economies may be fundamentally different from the picture provided by liberal Western-centric perspectives. Instead of looking at capital markets as uniform entities, we propose to analyse them as variegated – while characterized by common financialization processes, they can be informed by different institutional logics, leading to very different market dynamics and outcomes. We explore to what extent these differences exist and how state-capitalist economies facilitate capital market development. Our comparative institutional analysis of securities exchanges as central parts of capital markets in six increasingly financialized emerging market economies – Brazil, China, India, Russia, South Africa and South Korea – focuses on the degree to which capital markets are integrated into state-capitalist institutions. Instead of mere platforms on which market transactions take place, we analyse exchanges as powerful actors which actively shape capital markets. While in most advanced economies exchanges are situated within an institutional setting informed by neoliberal institutional logic, we demonstrate that exchanges in emerging markets often organize capital markets to facilitate state objectives. [ABSTRACT FROM AUTHOR]

Using a recent stock market liberalization reform policy in China—the Stock Connect—as a quasi-natural experiment, this study examines the effect of stock market liberalization on market efficiency. Employing a dataset of 17,086 Chinese listed firms covering 2009 to 2018, we find that stock market liberalization improves the market efficiency of the Chinese mainland stock market. We further explore the potential channels through which the Stock Connect can enhance the efficiency of the A-share (A-shares refer to shares issued by Chinese companies incorporated in mainland China, traded in the Shanghai Stock Exchange and the Shenzhen Stock Exchange. They are denominated in Chinese RMB (the local currency). A-shares were restricted to local Chinese investors before 2003, are open to foreign investors via the Qualified Foreign Institutional Investor, RMB Qualified Foreign Institutional Investor, or the Stock Connect programs.) market. The findings show that liberalizing capital markets could benefit local market efficiency by increasing stock price informational efficiency and improving corporate governance quality. The additional analysis shows that stock market liberalization has a significant and positive impact on local market efficiency, enhancing firm value and reducing stock crash risk. We conduct various robustness checks to corroborate our findings. This study provides important policy implications for emerging countries liberalizing capital markets for foreign investors. [ABSTRACT FROM AUTHOR]

Capital market that we see today in India has evolved over more than two centuries and its genesis lies in developments that took place during rule by East India companies. The nascent markets that emerged during the period have matured and are one of the most progressive markets in the world today. The Indian capital markets are robust, use best of the technologies and generate interest from across the world. This work draws inspiration from many printed resources that include, academic articles, reports and books. The paper attempts to identify the nascent stages of formation of capital markets in the country over time. From a historical perspective the Indian capital market is closely interwoven with the Bombay Stock Exchange which is also first exchange to be formed in Asia. The paper also covers shape of present-day capital market that has emerged over time. The paper explains how the capital markets have expanded across different cities for several decades and then, constrained with the environmental changes, they consolidated. [ABSTRACT FROM AUTHOR]

The article is about the dynamics of the development of the capital market in Bulgaria. The period covered in this research is 2001 – 2021. The study of the established trends is based on the analysis of basic stock market indicators such as market capitalization, market capitalization to national GDP ratio, annual turnover, number of concluded transactions, number of issues of financial instruments listed for trading, basic stock exchange indices. The key factors that impact the dynamics of the capital market in this country have been extrapolated. Based on that, the main particularities of the Bulgarian capital market have been outlined. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico 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.)

Purpose: The purpose of this paper is to examine the impact of short sale prospect on future income smoothing. Design/methodology/approach: This study examines how short sale prospect impacts future income smoothing. This study follows prior research and uses two measures of income smoothing. One is the correlation between the change in prediscretionary income and the change in discretionary accruals. The other is the variability of earnings relative to the variability of cash flows. Findings: This study finds that short sale prospect has a negative impact on future income smoothing. This finding is robust to use different measures of short sale prospect and income smoothing and to subsample tests. Additional analysis reveals that short sale prospect, by curbing income smoothing, reduces future stock price crash risk. Originality/value: To the best of the authors' knowledge, this study is the first to examine the impact of short selling on firms' subsequent smoothing of reported income. This study contributes to the earnings quality literature by demonstrating the governance role of short selling on future earnings smoothness. [ABSTRACT FROM AUTHOR]

Purpose: With the development of the economy, an increasing number of listed companies form subsidiaries in China. Though the increase in the number of subsidiaries affects the hierarchical structure and risk of conglomerates, few studies relate the hierarchical relationship between the parent company and its subsidiaries to its capital market performance at the conglomerate level. Therefore, this study aims to investigate the relationship between the number of subsidiaries and crash risk. Design/methodology/approach: Using a sample of all the A-share companies in the Shanghai and Shenzhen stock markets from 2007 to 2015, this study conducts multivariate regression analyses between the number of subsidiaries and the stock price crash risk. Findings: This study finds an inversed U relationship between the number of subsidiaries and the stock price crash risk, and the above inversed U relationship is steeper in conglomerates with stronger managerial power and less finance distress. Originality/value: This research has an incremental contribution to the agency problem and governance effect of the parent–subsidiary system in conglomerates. To the best of the authors' knowledge, this is the first study to show a significant quadratic relationship between the future crash risk and the number of subsidiaries. This paper provides new evidence that the number of subsidiaries has an incremental ability to predict future firm-specific crash risk above other predictors identified by previous research. [ABSTRACT FROM AUTHOR]

We examine the predictability of 299 capital market anomalies enhanced by 30 machine learning approaches and over 250 models in a dataset with more than 500 million firm-month anomaly observations. We find significant monthly (out-of-sample) returns of around 1.8–2.0%, and over 80% of the models yield returns equal to or larger than our linearly constructed baseline factor. For the best performing models, the risk-adjusted returns are significant across alternative asset pricing models, considering transaction costs with round-trip costs of up to 2% and including only anomalies after publication. Our results indicate that non-linear models can reveal market inefficiencies (mispricing) that are hard to conciliate with risk-based explanations. [ABSTRACT FROM AUTHOR]

The fact that the past feelings and behaviors of company managers affect investors, and assessing its impact on the capital market, paves the way for managers and investors to make opportunistic choices. The purpose of this study is to investigate the relationship between past earnings management and earning investor trust using financial information related to companies listed on the stock exchange during the period 1394 to 1399. For this purpose, multivariate linear regression methods based on panel data and fixed effects methods have been used. The results of this study show that companies 'unexpected earnings do not have a significant effect on earning investors' trust and the impact of the company's low earning management in the past has not affected this relationship. However, stock prices have reacted negatively and significantly to earnings, and companies' past low earnings management has moderated this effect. In other words, it can be said that earnings management in the past reduces the stock price response to earnings announcements. [ABSTRACT FROM AUTHOR]

Purpose – This research study aims to design a novel risk-managed time-series momentum approach. The present study also examines the time-series momentum effect in the Indian equity market. Apart from this, the study also proposes a novel risk-managed time-series momentum approach. Design/methodology/approach – The study considers the adjusted monthly closing prices of the stocks listed on the Bombay Stock Exchange from January 1996 to December 2020 to formulate long-short portfolios. Newey–West t statistics were used to test the significance of momentum returns. The present research has considered standard risk factors, i.e. market, size and value, to evaluate the risk-adjusted performance of timeseries momentum portfolios. Findings – The present research reports a substantial absolute momentum effect in the Indian equity market. However, absolute momentum strategies are exposed to occasional severe losses. The proposed time-series momentum approach not only yields 2.5 times higher return than the standard time-series momentum approach but also causes substantial enhancement in downside risks and higher-order moments. Practical implications – The study’s outcomes offer valuable insights for professional investors, capital market regulators and asset management companies. Originality/value – This study is one of the pioneers attempting to test the time-series momentum effect in emerging economies. Besides, current research contributes to the escalating literature on risk-managed momentum by suggesting a novel revised time-series momentum approach. [ABSTRACT FROM AUTHOR]

In the digital assets universe, a security token is more than a currency — it often represents ownership of an underlying real-world asset. Indeed, the SEC hearings have changed the future of how cryptocurrencies work through more stringent regulations. Unlike ICOs — which collapsed during the 2017 craze — STOs — which stands for Security Token Offerings — are actual financial securities and thus backed by something tangible like the assets, profits or revenue of a company or an asset. In the coming years, we are likely to see a significant rise in the number of STOs. Indeed, while institutional investors have consistently stayed away from cryptocurrencies and ICOs in the past, the reasoning they used in keeping such a distance (aka we do not invest in unregulated securities) does not apply to security tokens. One of the most promising features of security tokens and STOs is their ability to offer tokens as a digital representation of shares of a company's stock. In addition to the tokenisation of company shares, real goods and assets can stand behind the tokens. In the future, the widespread tokenisation of real assets could become a new trend. One of the most promising markets for tokenisation is real estate. Tokenisation of a residential house will give people the opportunity to become its owners and conduct voting on digital platforms, making decisions based on the share of each of the voters in the house. In our opinion, tokenisation will thus enable the democratisation of capital markets. It will also make the market more efficient. And finally, tokenisation will open up trillions of dollars in liquidity. In short, tokenised securities are bridging the gap between traditional (financial and real) assets and crypto markets because they are aligned with everyone's interest. And this will be hugely disruptive. [ABSTRACT FROM AUTHOR]

This paper investigates whether and how the development level of a country's digital economy affects stock price synchronicity. The results indicate that countries with high levels of digital economy development exhibit low stock price synchronicity. Additionally, by decomposing stock price synchronicity into systematic and firm‐specific stock return variations, we find that systematic (firm‐specific) variations of stock returns decrease (increase) with the level of a country's digitalization. These findings shed light on the future trend of stock price synchronicity in financial markets around the world and support the information‐based interpretation of stock price synchronicity. [ABSTRACT FROM AUTHOR]

We study how listing status affects corporate innovation and total factor productivity (TFP) in the Chinese capital market. Using a new data set of R&D investment and patent information on both industrial unlisted and listed firms, the following empirical findings are obtained: (i) firms experience an increase in innovation input and a decrease in innovation output following the initial public offering (IPO); and (ii) the decrease in innovation output significantly impedes TFP. We identify two possible mechanisms through which IPOs affect innovation activities: agency problems and easier access to funding. The results are robust to the propensity score‐matching approach that addresses selection bias. The analysis reveals that firms face a trade‐off between financing advantages and a potential decrease in innovation and productivity during the transition to public equity markets. [ABSTRACT FROM AUTHOR]

Financial contagion refers to the spread of market turmoils, for example from one country or index to another country or another index. It is standardly assessed by modelling the evolution of the correlation matrix, for example of returns, usually after removing univariate dynamics with the GARCH model. However, significant events like crises visible in one financial market are usually reflected in other financial markets/countries simultaneously in several dimensions, i.e., in general, entire distributions of returns in other markets are affected. These distributions are determined/described by their expected value, variance, skewness, kurtosis and other statistics that determine the shape of the distribution function of returns, which can be based on higher (mixed) moments. These descriptive statistics are not constant over time, and, moreover, they can interreact within the given market and among the markets over time. In this article we propose, and use for the daily values of five indexes (CAC40, DAX30, DJIA, FTSE250 and WIG20) over the time period 2006–2017, a new, simple and computationally inexpensive methodology to automatically extend contagion evaluation from the evolution of the correlation matrix to the evolution of multiple higher mixed moments as well. Specifically, the joint distribution of normalized variables for each pair of indexes is modeled as a polynomial with time evolving coefficients estimated using an exponential moving average. As we can obtain any arbitrary number of evolving mixed moments this way, its dimensionality reduction using PCA (principal component analysis) is also discussed, obtaining a lower number of dominating and relatively independent features, which can each be interpreted through a polynomial that describes the corresponding perturbation of joint distribution. We obtain features that describe the interrelations among stock markets in several dimensions and that provide information about the current stage of crisis and the strength of the contagion process. [ABSTRACT FROM AUTHOR]