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In recent years, the global economy has been hit by a sequence of severe shocks that affected the two largest economies, the USA and the Euro Area, severely. Uncertainties about the future abound. While the challenges are similar for both economies and the policy tools resemble each other, they apply to different economic landscapes. What can they learn from each other? This paper looks at the basic structural facts, the nature of uncertainty shocks, and the efficiency of policy tools in the two economies. The key to understanding recent developments is uncertainty. This paper argues that the channel through which uncertainty influences inflation, wage cost, and unemployment is the markup firms charge to cover their cost of capital. While the measurements of uncertainty are uncertain, adding a proxy for uncertainty can improve the estimates of the basic New Keynesian model. The Federal Reserve Bank has been more successful because it operates in a more integrated capital market. In the Euro Area, uncertainty is higher than in the US and this could make disinflation in Europe more painful in terms of unemployment. [ABSTRACT FROM AUTHOR]

This research aims to determine the optimal clustering based on the classification of environmental and financial performance variables. The study was conducted using a dataset spanning from 2010 to 2017, consisting of 102 listed companies from the Mexican, Brazilian, Colombian, and Chilean capital markets. As a result, the number of companies included in each classification varied. Using profitability-based metrics, our findings indicate that there are no discernible advantages to being classified as NC company. Additionally, the mean and return values of both groups are highly similar. By employing risk metrics, the algorithm classifies the data according to countries, leading to a natural classification. Conversely, when considering eco-efficiency metrics, we observed the formation of two distinct groups. Therefore, it can be concluded that the algorithm effectively identifies a specific category of controversial companies by incorporating environmental performance variables. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the real effects of financial misconduct on corporate innovation. Design/methodology/approach: The authors use a sample of Chinese A-share listed firms from 2006 to 2017. This study uses several empirical strategies to deal with endogeneity concerns, including Heckman's two-stage correction approach, propensity score matching and instrumental variables. Findings: The authors' findings consistently show that financial misconduct impedes corporate innovation. Furthermore, the authors' analysis demonstrates that the negative impact of financial misconduct is more pronounced in nonstate enterprises. The authors also show that financial misconduct discourages innovation through information, short-termism and financing channels. Practical implications: This paper is of particular interest to policymakers, as firm behavior is heavily regulated and altered by securities laws and regulations over time. The authors recommend firms to observe financial regulatory laws to promote capital market integrity and enhance shareholder value through innovation projects. The authors also recommend that regulators provide incentives that encourage corporate transparency and use new technologies to detect financial misconduct quickly. Originality/value: Few studies in literature investigate the real consequences of financial misconduct on firm investments. Hence, this paper fills this gap by analyzing the implications of financial misconduct on corporate innovation. This study is one of the first to provide new insights into the adverse effects of financial misconduct on firm-level innovation, supported by empirical evidence. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore the impact of corporate financialization (CF) on green innovation (GI) and further disclose the moderating role of CEO's individual characteristics in such relationship from the perspective of corporate governance. Design/methodology/approach: This paper uses empirical research methods to study the impact of CF on GI based on the evidence from China capital market. Findings: The findings indicate that: CF has a significant inhibiting effect on GI; female CEOs weaken the inhibiting effect of CF on GI compared to male CEOs; and CEO's financial background positively moderates the inhibiting effect of CF on GI. Originality/value: This paper, first, supplements the research literature on the economic consequences of CF and influencing factors of GI in non-financial firms. Then, it opens up the internal impact mechanism of CF on GI, which is moderated by the individual characteristics of corporate CEOs. Finally, it provides important reference for how to suppress CF of non-financial firms, cultivate CEOs that meet the needs of corporate development and promote GI development of enterprises through empirical evidence from China. [ABSTRACT FROM AUTHOR]

This paper takes the recent public policy innovations of the European Commission to foster the growth of 'unicorns' through direct interventions as an entry point to inquire into the changing role of the EU in the European Venture Capital Market. Based on a reconstruction of EU public policy interventions from the 1990s onwards, we show the constitutive, yet changing role of EU public actors in that market. The latest engagement of EU public policy, aiming to select and nurture start-ups with the potential to become unicorns, we argue, must be understood as a new layer in this trajectory of foundational market investment. Moving from an initial 'market crafting' approach (1990–2000) to 'market fixing' (2001–2013), this new mode of intervention represents a qualitatively new level, which seeks to shape innovation outcomes along a European investment chain. We identify this modality of intervention as a new form of economic statecraft, driven by the goal of securing technological sovereignty, which together with the two other layers forms the basis of the European Investor State. [ABSTRACT FROM AUTHOR]

This study aims to improve asset allocation by combining traditional finance theory and behavioral finance. The authors construct efficient portfolios using modern portfolio theory (MPT) and identify an appropriate portfolio for a particular investor through a risk assessment score (RAS). The identified portfolio is not only optimal but also suitable based on the investor's risk profile. An RAS questionnaire is designed to produce an additive score in the range of 0 to 100 (i.e., a percentage) that maps linearly to the range of the tangency slope. Their framework is highly flexible and cost effective in terms of both capital market assumptions and the delineation of investor preferences. To emphasize the flexibility of the process, they provide an example questionnaire for retail investors in India, as well as an illustration of a three-asset-class efficient frontier. They also briefly discuss the ability of mapping responses to qualitative inquiries to the tangency slope in the allocation decisions of institutional investors (e.g., defined-benefit pension funds). [ABSTRACT FROM AUTHOR]

Objective: The present study aimed to propose an audit quality model based on fraud indicators to reduce money laundering activities in companies listed on the Iranian capital market. Methodology: The research method was applied in terms of purpose and mixed (qualitative-quantitative) of an exploratory type in terms of data type. The statistical population of the study consisted of the qualitative section (academic experts from the accounting and economics faculty of the University of Tehran) and the quantitative section (senior managers of the Audit Organization, experts from the Tehran Stock Exchange). The sample size in the qualitative section included 16 experts selected using the saturation principle and purposive nonrandom sampling method. Additionally, in the quantitative section, 185 subjects were selected using stratified random sampling. In the qualitative section of this study, semi-structured interviews were used to collect data, and in the quantitative phase, a researcher-made questionnaire derived from the qualitative section was used. In the qualitative section, for calculating validity, experts' opinions were utilized, and for calculating reliability, intra-subject agreement and inter-coder agreement were used, with results indicating that the data were valid and reliable. Moreover, to determine the validity of the questionnaire, content and construct validity were used, and for calculating reliability, Cronbach's alpha coefficient and composite reliability were used, with results indicating that the tools were valid and reliable. The data analysis method in the qualitative section was thematic analysis using Maxqda 2022 software. In the quantitative section, considering the research objectives, descriptive and inferential statistics methods (one-sample t-test and confirmatory factor analysis) were used with Spss-V23 and Smart PLS software. Findings: The research findings showed that audit quality variables based on fraud indicators in the Tehran Stock Exchange, including pressure, opportunity, justification, and capability, had path coefficients of 0.291; 0.231; 0.263; and 0.120, respectively, impacting the reduction of money laundering activities. Finally, based on the obtained results, the research model was designed, which had appropriate validity. Conclusion: The study highlights that high-quality auditing based on fraud indicators significantly reduces money laundering activities in companies listed on the Tehran Stock Exchange. Key audit quality variables--pressure/motivation, opportunity, justification/attitude, and capability--directly and significantly impact the effectiveness of anti-money laundering measures. Strengthening auditing mechanisms, improving internal controls, and fostering cooperation between auditing authorities and regulatory bodies are crucial strategies to mitigate money laundering. [ABSTRACT FROM AUTHOR]

BACKGROUND AND OBJECTIVES: The capital market is one of the most influential institutions in the country when it comes to the economic improvement of society, and the optimal investment in this market has always been the main concern of investors and researchers in this field. Nowadays, a lot of research has been done to form an investment portfolio and various models have been introduced to optimize the investment portfolio. This study aims to investigate the performance of different investment portfolio optimization models under different scenarios in the insurance industry and pension funds as one of the main pillars of the capital market. METHODS: This study investigates the performance of different investment portfolio optimization models using variance, semivariance, standard deviation, semistandard deviation, conditional value at risk and conditional drawdown at risk under different scenarios. The optimized investment portfolio using the beta return-based meanvariance model and the CAPM model is also presented as an alternative consideration for investors with higher accuracy and as a basis for decision making. The data used for this research were collected from April to March 1401 on a daily basis from Tehran Stock Exchange. FINDINGS: Monthly stock returns indicate that the respective stocks were not stable and did not show a steady trend during the analyzed period. By forming an investment portfolio consisting of shares of insurance companies and pension funds, the return and risk of each investment model were determined, providing investors with comprehensive information. Depending on their risk appetite or risk aversion, investors can choose different investment strategies to maximize the benefits of their investment. CONCLUSION: This research shows that the portfolio formed with the Conditional Drawdown at Risk measure has a return of 22%, the highest return among the analyzed models in the insurance industry in the Tehran Stock Exchange market. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper, therefore, is to amplify the imperativeness for a re-oriented regulatory approach that prioritizes constructive engagement with the regulated communities, harnessing the existing pool of savings and retention of market participation. Design/methodology/approach: The paper adopts a doctrinal legal research design with data drawn from primary and secondary sources of law. The primary sources include case laws and statutes, and the secondary sources include book chapters, journal articles and other internet-sourced materials. Findings: The paper finds that the status quo in Nigeria if left to continue would spell severe economic disaster for Nigeria's securities administration, but a well-structured realignment of the regulations would boost the country's securities market effectiveness. Research limitations/implications: The research's conclusions and suggestions might only be applicable to Nigeria's particular situation with regard to capital market development and securities regulation. Other nations or locations with distinct regulatory systems, market structures and economic situations may not be able to immediately adapt it. When extending the research results outside of the Nigerian environment, caution should be exercised. For regulatory agencies and policymakers, the research offers insightful suggestions. The analysis may pinpoint certain areas where policy changes are required to address reoccurring problems and improve the chances for a healthy capital market. Practical implications: For Nigeria's regulatory frameworks controlling securities to be strengthened, this paper would be crucial. To make sure they are in line with global best practices, this entails examining and revising current laws, rules and standards. A stronger regulatory environment may also result from the implementation of harsher enforcement procedures and consequences for noncompliance. It is also required for creating market infrastructure, fostering market integration and cooperation, facilitating access to capital, monitoring and evaluation. It would also benefit investor education and protection. Social implications: Addressing these persistent issues and potential remedies in Nigeria's capital market development and securities regulation would have various advantageous social effects. These include improved market infrastructure, more financial inclusion, improved investment protection for investors and improved market openness and integrity. Such results will help Nigerian society as a whole by fostering economic expansion, job creation, wealth distribution and general social progress. Originality/value: This paper is the original work of the authors and has not been published anywhere nor submitted to another journal for publication. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine whether mandatory audit partner rotation is associated with future stock price crash risk. Design/methodology/approach: This study makes use of a regulatory change from the Ministry of Finance of China and the China Securities Regulation Commission, which requires mandatory rotation of audit partners since 2004, as a natural experiment to establish causality and applies a difference-in-difference research design. Findings: Audit partner rotation leads to a significant decrease in future stock price crash risk in the departing partner's final year of tenure preceding mandatory rotation, consistent with peer monitoring argument of mandatory rotation. Inconsistent with other arguments, including client-specific knowledge, fresh perspective and auditor independence, no significant effect takes a place in the incoming partner's first year of tenure following mandatory rotation. Mechanism analysis documents that mandatory audit partner rotation reduces stock price crash risk by improving audit quality and constraining managerial empire building. Originality/value: The results shed new light on the capital market consequence of mandatory audit partner rotation and the cause of stock price crash risk. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate whether mandated disclosure of engagement quality review hours provides new information that affects investors' decision-making. Design/methodology/approach: In 2014, Korean authorities mandated that audit engagement quality review hours must be disclosed in their audit reports. Using this unique field setting in Korea, this study presents empirical evidence of the policy initiative's effect on earnings reliability by examining both pre- and post-implementation periods. Findings: Following the initial disclosure of engagement quality review hours in 2014, the authors observe that the capital market's valuation of quarterly earnings surprises, measured by earnings response coefficients (ERCs), was significantly lower for firms with high levels of abnormal engagement quality review hours than for other firms. This paper also finds that the observed association between engagement quality review hours and ERCs in the postregulation period hinges on the probability of earnings management, proxied by discretionary accruals and just meeting or beating analyst earnings forecast. Originality/value: This paper suggests that the policy mandating disclosure of engagement quality review hours provides original information that the market considers relevant for appraising the reliability of reported earnings. [ABSTRACT FROM AUTHOR]

This study examines the effect of cost stickiness on stock price delay. Using a sample of U.S. firms in the period of 1984–2019, I find that the stickiness of Selling, General, and Administrative (SG&A) costs is positively associated with stock price delay. This finding is consistent with the notion that cost stickiness reduces the quality of information available to investors and causes stock price delay (the direct channel). Using a mediation test, I document that cost stickiness reduces the analyst following of the firm, thus increasing stock price delay (the indirect channel). Cross-sectional analyses reveal that the effect of cost stickiness on stock price delay is prominent in firms characterized ex-ante by a relatively poor information environment. Meanwhile, the effect is weak for firms with managers who use less uncertain and more positive words in Management Discussion and Analysis (MD&A) disclosures within 10-K filings. This study contributes to the growing literature on cost behavior by documenting the adverse consequences of managers' cost decisions on the capital market and the role of the information environment in mitigating these negative implications. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to review the literature extensively by analysing recent work and providing a guide for models, data sets and research findings. Design/methodology/approach: This paper reviews the literature extensively by analysing recent work and providing a guide for models, data sets and research findings within the context of capital market imperfections. The authors further break down the literature into closer-in-nature categories for reader's convenience and comprehension. Finally, the authors address gaps in the existing literature and propose government policies that can tone down the potential effect of credit rationing on employment. Findings: This paper provides a map of the literature so as to help future researchers in the relevant literature and give a short insight of what has been explored so far. Originality/value: This paper is original and is the result of a thorough review of an extensive literature. [ABSTRACT FROM AUTHOR]

The implementation of ASC 606 significantly changed revenue recognition practices for many firms in the capital market by increasing the level of discretion required to record revenue amounts. I examine the impact of this increase in discretion on revenue manipulation around external targets. I find that firms near analyst revenue targets have increased levels of discretionary revenues under ASC 606 relative to their peers, indicating increased revenue manipulation. Further analysis reveals that these increased levels of discretionary revenues are concentrated in firms characterized as having increased opportunity or incentive to use ASC 606 opportunistically to manipulate revenues upwards. Specifically, firms with more complex revenue operations and firms in earlier life cycles are associated with increased discretionary revenues under ASC 606. I also provide preliminary evidence of revenue manipulation varying systematically with industry characteristics. This paper is one of the first to provide evidence of capital market consequences stemming from ASC 606, while also highlighting the impact of firm characteristics on the choice to manage revenues. [ABSTRACT FROM AUTHOR]

Sustainability reporting was introduced after financial reporting to meet the social and environmental informational needs of stakeholders, while integrated reporting was initiated to integrate financial reporting and sustainability reporting to advance the decision usefulness of corporate disclosure practices. Despite claims and evidence of the value relevance of each reporting framework exclusively, studies on the incremental value relevancies of these subsequent disclosure practices have been sparse. Using a sample of firms from the Johannesburg Stock Exchange from 2011 to 2020 and firms' capital market liquidity performance, this study finds that sustainability reporting and integrated reporting are not only value‐relevant disclosure practices but also offer incremental value relevancies. Sustainability reporting provides incremental value relevance over financial reporting, and integrated reporting offers incremental value relevance over financial reporting and sustainability reporting. However, the findings do not find support for integrated reporting to replace the practices of financial reporting and sustainability reporting and affirm the contribution of each of the three reports in the corporate reporting space. [ABSTRACT FROM AUTHOR]

Purpose: Shariah-compliant security tokens can play an important role in developing innovative solutions to resolve voluntary and involuntary financial exclusion in Muslim societies. This paper aims to present features of Shariah-compliant security tokens and supporting ecosystems that can provide additional sources of financing for small and medium enterprises (SMEs) and create alternative investment opportunities for retail investors. Design/methodology/approach: This conceptual paper presents the building blocks of security tokens, their ecosystem and key functions and activities and then examines these features from Islamic perspectives. This is done by reviewing the contemporary literature on cryptoassets and their ecosystems and analysing these in light of Islamic legal and ethical values and principles. Findings: The paper provides a framework of how Shariah-compliant asset- and equity-based security tokens can be used by SMEs to raise funds quickly and efficiently on crypto exchanges. Given the novelty and complexity of the technology involved and the lack of understanding and skills to develop blockchain-based systems among SMEs, this paper suggests developing security tokens and exchanges in a controlled manner under the supervision of a nation's stock markets. Originality/value: Although several studies examine cryptocurrencies from Islamic perspectives, literature on other cryptoassets and their role in financial inclusion is scant. This paper identifies Shariah-compliant asset- and equity-based security tokens and supporting ecosystems that can contribute to the development of digital capital markets where SMEs can raise funds efficiently and retail investors can invest in alternative asset classes. [ABSTRACT FROM AUTHOR]

Purpose: Biotech companies stand as key actors in pharmaceutical innovation. The high risk and long timelines inherent with their R&D investments might hinder their access to funding, potentially stifling innovation. This study aims to explore into the appeal of biotech companies to capital market investors, whose financial backing could bolster the growth of the biotechnology sector. Design/methodology/approach: This paper uses a dataset of 774 US publicly listed biotech firms to investigate their risk and return characteristics by comparing them to pharmaceutical firms and a sample of matched non-biotech R&D-intensive firms over the sample period 1980–2021. Tests show that the conclusions remain consistent across diverse methodological approaches. Findings: The paper shows that biotech companies are riskier than the average firm in the market index but outperform on a risk-adjusted basis both the market and a matched group of R&D-intensive firms. This is particularly true for large capitalization biotech, which is also shown to provide a diversification benefit by reducing the downside risk in past crisis periods. Originality/value: This paper provides insight relevant to the current debate about the overall performance of the biotech industry in terms of policy changes and their impact on small, early-stage biotech firms. While small and early-stage biotech firms are playing an increasing role in scientific innovation, this study confirms their greater vulnerability to financial risks and the importance of access to capital markets in enabling those companies to survive and evolve into larger biotech. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to investigate the effect of anarchist accounting (AA) on stakeholder relationship capability (SRC) in the context of Iranian capital market companies. Design/methodology/approach: This study is based on a descriptive survey-correlation data collection method. As this study is on (AA) and (SRC) in Iran, the population of the study is made up of all financial managers and heads of the accounting department of capital market companies in Iran. Among 185 companies (Tehran Stock Exchange [TSE]), 100 companies were selected as samples which are all in the TSE. As suggested by Niles (2006), a minimum sample size of 10% of the population is generally acceptable. A questionnaire survey was adopted in obtaining primary data for this study. Thus, based on Cochran sampling techniques, 395 questionnaires were returned and became the basis of analysis. Also, partial least square was used to test the research hypothesis. Findings: The statistical findings indicate the fit of the structural desirability of the factor load and according to the standardized coefficient (path coefficient), the dimensions of AA have a negative and significant effect on SRC, because the path coefficient is positive. Originality/value: Theoretically, to the best of the authors' knowledge, this study is the first research that tries to examine the stakeholder relationship capability through the link between social/political approaches with accounting procedures, an issue that has not been considered in any prior study. Also, conducting the present study in the conditions of social distrust in the Iranian capital market can be important, because the expansion of anarchist accounting helps to create a level of symmetry and equality in information disclosure and it can create value for shareholders. [ABSTRACT FROM AUTHOR]

Despite its scarcity, capital is necessary for a country's economic development. To channelise capital foreign investment, financial intermediaries such as development banks, commercial banks, investment and financial institutions, insurance and investment banks are required. The expansion of the capital market is required to encourage and steer capital formation. The capital market encourages investment while also bringing vigour and dynamism to the country's business organisations. The availability of accounting information and financial reporting is crucial for the effectiveness of capital markets, efficient resource allocation, capital information and economic development. Prior researchers prove the relevance of accounting information as a predictor of changes in stock behaviour in particular and growth of stock market in general. To augment this aspect the relevance of segment wise information provided by companies becomes important to be studied. Hence, the present study examines the influence of segment reporting on value relevance. Stock price after 90 days from the end of the financial year has been taken as a dependent variable and various segment related dimensions as independent variable for the period 2016-2017 to 2021-2022. It employed Ohlson (1995) model and indicates that Segment reporting information has significant and positive influence on value relevance thus it clearly indicates that investor's view segment information while making investment decisions. [ABSTRACT FROM AUTHOR]

Although auditing standards instruct auditors to avoid issuing standardised key audit matters (KAMs), standard setters warn and financial statement users worry about expanded auditor's reports becoming sticky, generic and boilerplate over time. Based on textual analysis of expanded auditor's reports from the UK, I provide longitudinal evidence of an increase in various textual similarity measures including year‐over‐year similarity (stickiness), within‐peer group similarity (generality) and boilerplate language over time. Next, I identify a number of crucial drivers of convergence and find that disclosure similarity diminishes the positive capital market effect of precise KAM reporting documented in prior studies. Together, these findings suggest that audit firms have successively developed standard text modules for KAM reporting that undermine the aim of expanded auditor's reports to provide informative value. This paper extends the literature on the relationship between institutional environments and unintended effects of auditor disclosure regulation. [ABSTRACT FROM AUTHOR]

We investigate the effect of affiliation with a large business group on a firm's trade credit policy while controlling for the effects of its financial health and bargaining power in the Korean setting. Group affiliation may influence trade credit finance through the internal capital market mechanism and/or the extra bargaining power mechanism. In our empirical analyses, we focus on identifying the more dominant mechanism for determining trade credit demand (TCD) and supply (TCS). First, we provide a set of empirical findings showing that a firm's affiliation with a large business group increases the firm's TCD but decreases its TCS. These findings support the extra bargaining power mechanism argument. Second, we provide another set of empirical findings that group‐wise financial distress has weak positive impacts on a group affiliate's TCD and TCS. These findings support the internal capital market mechanism argument. Overall, we provide evidence that large business groups in Korea function uniquely in that the extra bargaining power mechanism greatly dominates the internal capital market mechanism when determining a group affiliate's trade credit transactions. We also provide evidence of the internal capital market mechanism functioning when an entire business group faces severe financial difficulties. [ABSTRACT FROM AUTHOR]

We examine whether the increased quantity of public information has a spillover impact on equity sales by private industry peer firms. To capture an increase in the quantity of public peer information, we use corporate spin‐offs as these events cause an increase in the number of independent public entities that mandatorily disclose financial reports. Using a unique dataset on private firms' equity sales extracted from the Securities and Exchange Commission filings pursuant to Regulation D, we find that private industry peers sell more equity following spin‐offs, but the increase is not statistically significant. When we divide our spin‐off sample based on the availability of segment information on subsidiaries before spin‐offs, however, we find a significant an increase in private firms' equity sales after spin‐offs when parent firms did not previously disclose segment reports. Additional test results suggest that our inferences regarding private industry peers are not entirely explained by an industry‐wide demand shock. Overall, we contribute to the literature by establishing an information spillover channel, incremental to the effect of common industry shocks, flowing from the public to private markets. [ABSTRACT FROM AUTHOR]

As the pivotal figure of information transmission in the capital market, the mainstream financial press has a significant impact on the operation of the stock market. Based on the mainstream financial press, this study obtains the news reports of 945 China A‐share listed companies in 2010–2019 and analyzes the relationship between the attention of the mainstream financial press and the efficiency of stock pricing. Further, we explore the mediating effect of corporate governance in this correlation. The empirical results show that the more reports on listed companies from the mainstream financial press the lower the delay level of the stock price of listed companies. At the same time, the characteristics information of the stock price increases, the higher the stock pricing efficiency. The attitude of press reports of listed companies also has an impact on the efficiency of stock pricing. The improvement of pricing efficiency will be achieved through neutral reporting. Mainstream financial press reports indirectly improve the efficiency of stock pricing by reducing the agency costs of the two types, and corporate governance plays a significant intermediary role in it. Finally, compared with market‐oriented media, the effect of policy‐oriented mainstream financial press on pricing efficiency is more significant. [ABSTRACT FROM AUTHOR]

We investigate the relation between sovereign and corporate bond issuance. Sovereign bond issues that increase a country's maximum maturity are followed by increases in the maximum maturity of corporate issues. Our results point to issuance complementarities based on the benchmarking of corporate bonds to sovereign bonds. Sovereign and corporate bond issues are also substitutes, but substitutability requires the availability of a high-quality sovereign bond benchmark. By adding to existing theories focusing on substitutability, our findings highlight the role that the maturity of sovereign debt plays in capital market development. [ABSTRACT FROM AUTHOR]

This study investigates the effects of economic policy uncertainty (EPU) on corporate purchases of directors and officers liability insurance from the perspective of capital market pressures. Using data on A-share Chinese listed firms from 2010 to 2021, our theoretical analysis and empirical tests reveal that higher levels of EPU increase purchases. The theoretical analysis and mediating tests reveal that capital market pressures play a mediating role in the relationship between EPU and purchases. This study also finds that the indirect ways in which EPU increases purchases consider the need for firms to mitigate litigation risks and take advantage of insurance governance. The heterogeneous analysis and tests reveal that EPU increases purchases more significantly in firms that have higher managerial agency costs, have lower corporate transparency, and are in industries with higher competition. The findings are significant for improving the risk management system in China's capital markets. [ABSTRACT FROM AUTHOR]

SMK Negeri 1 Pontianak is one of the vocational schools in Pontianak City that has not applied investment management knowledge in the capital market so students cannot understand the concept of capital markets in the business world. Apart from that, students' knowledge about capital markets is also very minimal due to the low level of literature and practice related to capital markets. It is hoped that this activity will trigger awareness, interest, and knowledge from the younger generation to invest in the capital market. Apart from that, this training also aims to introduce students to investment mechanisms in the Capital Market. This training starts from the preparation stage, namely surveying, determining target locations, preparing facilities and infrastructure for activities, and preparing training materials, including modules for training activities. The stages of implementing the activities are the presentation of material and investment training with simulations using the Motion Trade application.

The proliferation of FinTech apps has democratized access to financial services, empowering individuals and businesses to take greater control of their finances. These apps have catalyzed financial innovation, disrupted traditional business models, and fostered competition in the financial industry. Moreover, FinTech apps have the potential to drive economic growth, promote financial literacy, and advance financial inclusion on a global scale. FinTech applications have played an important role in the creation of an arena where information is collected, stored, and processed to make the best decisions of investment. This has boosted the investment and increased the activity in capital markets when considered from the investors’ point of view. Capital markets have always been an important place for investors to invest in long-term securities with a maturity of more than one year. Primary as well as secondary markets are part of it. People invest in securities expecting a return in the form of capital gains and/or income. The role of FinTech applications in facilitating various investment decisions has also opened doors to retail investors in capital markets. Traditionally, retail investors have been overlooked because they are perceived not to have enough capital to invest, be too risk-averse, and be too costly to service. Both quantitative and qualitative data have been used. 150 online surveys were used to gather primary data. The outcome from this study showed a major shift in stock market investors towards digital connection due to various reasons. Some cultural and behavioral effects have been found among the investors for the financial transactions.

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Hand-collecting credit line drawdowns that firms classify as long-term debt, we first document how long-term drawdowns rise with high investment needs or weak external capital market conditions. Nearly all drawdown proceeds finance long-term investment, including M&A activity. Unrated and lower-rated firms rely more on long-term drawdowns than high or very poorly rated firms. We further find that credit lines have tighter covenants than terms loans. Drawdowns are repaid fairly quickly and often refinanced with other long-term debt. Our findings support the monitored liquidity insurance theory of credit lines and highlight that long-term drawdowns act as a valuable bridge financing mechanism. [ABSTRACT FROM AUTHOR]

We document a novel strategic motive for family business groups to utilize their internal capital markets (ICMs) during financial crises. We find that crisis-period group ICM activity is targeted toward exerting product market dominance over standalone rivals. Groups make significant post-crisis gains in market share that are concentrated among affiliates (and industry segments within affiliates) operating in highly competitive product markets, where capturing such gains is difficult in normal times. These patterns are observed only in emerging markets, suggesting that ICMs enable groups to exploit crises to realize long-term competitive advantages only when rivals face chronic financing frictions. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This study investigates the relationship between board gender diversity (BGD) and the time to Initial Public Offering (IPO), which stands as an entrepreneurially risky choice, particularly challenging in family firms. We also investigate the moderating role of family ownership dispersion (FOD). Design/methodology/approach: We draw on an integrated theoretical framework bringing together the upper echelons theory and the socio-emotional wealth (SEW) perspective and on hand-collected data on a sample of Italian family IPOs that occurred in the period 2000–2020. We employ ordinary least squares (OLS) regression and alternative model estimations to test our hypotheses. Findings: BGD positively affects the time to IPO, thus, it increases the time required to go public. FOD negatively moderates this relationship. Our findings remain robust with different measures for BGD, FOD, and family business definition as well as with different econometric models. Originality/value: The article develops literature on family firms and IPO and it enriches the academic debate about gender and IPOs in family firms. It adds to studies addressing the determinants of the time to IPO by incorporating gender diversity and the FOD into the discussion. Finally, it contributes to research on women and outcomes in family firms. [ABSTRACT FROM AUTHOR]

The article analyzes the legislative acts that defined the scope of the control and supervisory powers of the National Securities and Stock Market Commission (hereinafter - the Commission) during the inception and formation of the securities market in Ukraine. The purpose is to identify the development trends in the legal regulation of relations within the capital markets. The article highlights changes in the system of state administration bodies overseeing the securities market. It notes that the function of state control was divided among three bodies based on substantive and functional characteristics, with the Commission taking a ce ntral role. A steady trend towards the legislator expanding the areas of activity and the range of issues under the Commission's control is observed. The expansion of the Commission's state control sphere and the range of subjects under its jurisdiction had logical justification determined by their activities. However, the scope of state control expanded significantly, requiring substantial human and material resources, which necessitated reforms in the Commission's structure and methods. The article also notes significant changes in defining the forms of implementation of the Commission's control powers. According to the current version of the Law of Ukraine «On State Regulation of Capital Markets and Organized Commodity Markets,» traditional state control methods, such as scheduled inspections, have become secondary. Instead, state supervision methods focusing on observing events in the capital markets have gained prominence. The legislator's attention has shifted from monitoring individual market participants to assessing overall market functioning. This shift requires further development of the monitoring system and enhancement of supervisory powers, reflecting the evolving content of the Commission's activities. The future development of relations between the state and subordinate subjects necessitates a differentiated approach to regulating its control and supervisory functions. This approach aims to reduce the scope of state control measures and promote economic libera lization. [ABSTRACT FROM AUTHOR]

The paper examines the current state and development of the Bulgarian economy in 2023, considering domestic and regional factors. We analyze the real sector by tracking GDP, inflation, and unemployment, linking these to EU processes. Emphasis is placed on labour market adjustments in the context of digitalization and transitioning to a climate-neutral economy. The sustainability of the fiscal sector is explored through financing the green and digital transition with EU funds, and the necessary policies to maintain fiscal stability. We discuss foreign trade prospects, considering the economic conditions and expectations for Bulgaria's main trading partners, the high dependence on euro area performance, and the specifics of foreign trade relations. The banking sector and the capital market analysis focus on the implications of European Central Bank monetary policy, regulatory actions of the Bulgarian National Bank, and risks to sector stability in a dynamic macroeconomic environment. Expectations and forecasts for the Bulgarian economy through 2026 are based on assumptions about global economic processes and local challenges. We make economic policy recommendations aimed at preserving the purchasing power of the population's income and restructuring certain fiscal measures. [ABSTRACT FROM AUTHOR]

Modeling and predicting fluctuations are important for many financial applications, including asset allocation, risk measurement and option pricing. This paper identifies and ranks the factors affecting market ambiguity and equity investment in companies listed on the Tehran Stock Exchange. This paper reviews the literature to identify the factors affecting market ambiguity and equity investment while conducting semi-structured interviews using the qualitative method of theme analysis. The experts interviewed were eighteen university professors and capital market activists and experts. A literature review, research, and interview results revealed six main themes, categorizing the factors influencing market ambiguity and equity investment in companies. This paper identified and ranked the main factors by the identified key factors and the fuzzy Delphi method. The results showed that the factors of financial performance, market, liquidity, financial analysis, environment, ambiguity and corporate governance are effective in market ambiguity and equity investment of companies, respectively. [ABSTRACT FROM AUTHOR]

Our article seeks to investigate the impact of ESG disclosure in its three dimensions, both collectively and individually, on the market value of Jordanian-listed companies from 2012 to 2019. Using a sample of 173 companies listed in ASE, 1,384 observations were collected. The findings indicate that environmental and social disclosure maximize companies' market value, and the ESG disclosure collectively has positively affected the market value. At the same time, the results do not show any important role in governance. This indicates that companies pay close attention to various stakeholders, particularly external stakeholders, and wish to increase trust and transparency by disclosing their ESG performance. As a result, companies' confidence in the capital markets is reinforced, and improved disclosure practices positively affect market value. This study adds an empirical contribution to the literature by investigating the influence of sustainability reporting on companies' market value in the context of emerging economic countries. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the level of reporting compliance in terms of content elements, measure to what extent each content element of the integrated reporting (IR) framework is linked to value creation and demonstrate the relationship between the level of compliance and value creation linkages. Design/methodology/approach: The sample for this study consists of 12 companies, 11 of which are public and 1 is non-public. The data is obtained from the Integrated Reporting Turkey Network founded in 2015 in Turkey. This study applies a holistic approach integrating two different content analysis methods. First, a multi-weighted scoring system is constructed by using the IR content elements and the previously developed indexes in the literature. Second, in-depth, sentence-by-sentence content analysis is used to determine the relation between the content elements and value creation. Findings: The results of the multi-weighted scoring system indicate a high level of compliance in the banking sector. On the other hand, the scores of the content analysis demonstrate higher scores in the disclosures of "basis of preparation and presentation", "organizational overview and external environment", "strategy and resource allocation", "performance" and "business model" elements, while lower scores in the elements of "risk and opportunities" and "outlook." The lowest compliance level associated with lower content analysis scores may indicate a low level of value creation potential. Consequently, this two-stage scoring is critical, as it clarifies the relation between compliance level and the explanatory power of each content element from a value creation perspective. Originality/value: This study aims to support the policymakers and regulators in highlighting the importance of measuring and reporting value. Furthermore, it intends to encourage companies to produce reports that increase the value relevance of accounting information to contribute to the development of capital markets. The current literature includes research that mainly concentrates only on the quality or extent of IR disclosure practices. This study offers a combined analysis that helps to determine at what level a company has accomplished the expectations of the International Integrated Reporting Council in terms of both the content and the value creation potential. [ABSTRACT FROM AUTHOR]

Objective: The aim of this study is to identify and rank the financial, nonfinancial, and behavioral components affecting companies' ERC. Methodology: Using data from 153 companies listed on the Tehran Stock Exchange over the period 2013 to 2022, and employing data mining techniques and two methods: stepwise forward regression and regression decision tree, the influential components on ERC were identified and ranked. Findings: The results of the stepwise forward regression method indicated that the components of auditor's opinion type, earnings per share (EPS), stock liquidity, growth opportunities, earnings stability, inflation rate, sales growth, operating profit ratio, relative strength index per share, and market index return respectively influence ERC. The regression decision tree method results also showed that the components of earnings stability, stock liquidity, EPS, stock price synchronicity, stock trading imbalance, adjusted trading volume, psychological line index, relative strength index per share, earnings conservatism, and financial statement restatements respectively influence ERC. The Wilcoxon test results also showed that the ranking of components influencing ERC is not the same in the two methods. Additionally, comparing the mean absolute error of the two methods indicated that the regression decision tree method identifies and ranks the influential components on ERC more accurately. Conclusion: The results of both methods confirm the high impact of EPS, stock liquidity, earnings stability, and relative strength index per share on the ERC of companies. [ABSTRACT FROM AUTHOR]

Rank and file employees execute firms' daily operating activities, but prior research rarely examines their importance due to a lack of employee information. In this article, we use a novel data set—company reviews by rank and file employees—to provide evidence on the impact of employee satisfaction on a firm's cost of equity capital. We find that firms with higher employee satisfaction have a lower cost of equity. Our results are robust to a variety of endogeneity tests and model specifications. We also find that the effect of employee satisfaction is more pronounced for firms with higher risk, greater financial constraints, and higher labor intensity or product market competition where labor is more critical to firm success. Further analysis shows that the negative association between employee satisfaction and the cost of equity is primarily grounded in reviews from current rather than former employees. Finally, we document that firms with high employee satisfaction experience lower systematic and idiosyncratic risk. Overall, our article presents novel evidence on the capital market benefits of higher employee satisfaction, particularly with regard to financing cost reduction. [ABSTRACT FROM AUTHOR]

Abstract This study explores the role of financial support in the digital transformation of Chinese A-share-listed companies from 2001 to 2020. By utilizing the moderating effect model and threshold regression model, this study finds the following results: (1) Digital transformation positively impacts innovation, and the support of banking and capital markets further strengthens this impact. (2) With the development of banking and capital markets, the impact of digital transformation on innovation changes from negative to positive, which is also reflected in the subsamples of Eastern companies, small and medium-sized companies (SMEs), and non-SMEs. (3) The study reveals that only the capital market in the non-Eastern region has no threshold, and capital market support is effective only for non-SMEs when it reaches a higher level. These findings have important implications for policymakers in promoting digital transformation through financial support and help companies understand how to use financial support to improve competitiveness.

Leveraging the Chinese capital market, we investigate the relationship between a CEO's scientific research background and the level of digitalization within enterprises. Our results demonstrate robust findings indicating that a CEO's scientific research background significantly enhances the level of enterprise digitalization. Moreover, we observe that this correlation is more pronounced in companies controlled by non-state-owned enterprises, those operating within a more advanced digital economy, and those engaged in high levels of regional integration. Furthermore, we establish that the positive impact of a CEO's research background on a company's digitalization level is primarily driven by fostering the organization's innovation drive. Overall, our research suggests that CEOs with scientific research backgrounds are instrumental in encouraging a culture of innovation within their firms, thereby enhancing enterprise digitalization performance. This study contributes to the literature by exploring the factors influencing enterprise digitalization levels through the lens of managerial experience and analyzing the economic implications of management experience on enterprise digital transformation. Methodologically, we have refined and enhanced the measurement approach for assessing enterprise digitalization levels. Practically, our findings underscore the importance of promoting cross-industry and cross-regional exchanges of high-caliber talent for executives, enterprises, and governmental entities alike. [ABSTRACT FROM AUTHOR]

In this paper, we investigate the relationship between the indicators for COVID-19 monitoring and the dynamic of jumps across six major financial markets including China, France, Italy, Germany, the UK, and the US. First, this paper finds that jumps occurred more frequently in the index returns during the COVID-19 pandemic. Second, the empirical findings suggest that the anxiety stemming from potential future control measures, which were prompted by updates in COVID-19 briefings, plays a significant role in explaining the jumps in index returns within financial markets. The strategies of 'zero tolerance for COVID-19', 'maximum healthcare capacity', and 'less tolerance for restriction' were carried out by China, European countries, and the US respectively. These diverse approaches to managing COVID-19 have a significant and varied impact on the market's sudden price movements. [ABSTRACT FROM AUTHOR]