Search

This article covers the topic of the relationship between the growth of companies and their financial condition when different business profiles are surveyed, such as high-tech, growth potential companies included in the NASDAQ Composite Index and traditional, matured companies included in the Dow Jones Industrial Average (DJIA), commonly known as blue-chip stocks. The hypothesis that the relationship between the Altman Z-score and the growth of enterprises as measured by assets, equity, sales, and earnings per share is positive was tested with Granger and VAR models. The main difference was found to be related to the size of the companies size and dynamics of growth. It was also shown that between NASDAQ enterprises there was no relationship between their growth and Altman Z-score, whereas when the DJIA blue chips were taken into account, a positive relationship was identified. It can be concluded that high-tech enterprises grow in a less predictable way not related to their economic condition, but mature enterprises focused on the growth and their condition. The value added of the article is finding that high-tech companies with growth potential and blue chips are managed in a different way due to their strategies of development. [ABSTRACT FROM AUTHOR]

Classic value investing à la Graham & Dodd (Security analysis: The classic, McGrawHill, New York, 1934) focuses on selecting stocks that seem cheap relative to their intrinsic value and fundamental quality. We use Bayesian inference to account for a large amount of uncertainty within intrinsic value estimation. We find that an undervalued‐minus‐overvalued factor that invests in cheap quality stocks and sells expensive junk stocks selected via Bayesian inference yields high risk‐adjusted returns and Sharpe ratios for equal‐weighted portfolios. We also find that using value‐weighted portfolios introduces size‐based dilutions and shifts the focus away from actual quality characteristics like profitability, payout, safety, and past growth. Our findings suggest that while the relative benefit of accounting for uncertainty via Bayesian inference is not large over shorter holding periods, it pays off for investment horizons longer than a month. [ABSTRACT FROM AUTHOR]

The stock markets in developing countries are highly responsive to breaking news and events. Our research explores the impact of economic conditions, financial policies, and politics on the KSE-100 index through daily market news signals. Utilizing simple OLS regression and ARCH/GARCH regression methods, we determine the best model for analysis. The results reveal that political and global news has a significant impact on KSE-100 index. Blue chip stocks are considered safer investments, while short-term panic responses often overshadow rational decision-making in the stock market. Investors tend to quickly react to negative news, making them risk-averse. Our findings suggest that the ARCH/GARCH models are better at predicting stock market fluctuations compared to the simple OLS method. [ABSTRACT FROM AUTHOR]

We document the influence of stock volatility on trend-following profits for a global sample of 1618 blue-chip stocks, across 43911 evaluation subperiods (2004–2018). We use the price sensitivity of trend signals (i.e. signal volatility) to isolate the detrimental impact of high stock volatility manifested through excessive/inefficient trading. Despite its almost null correlation with the stocks' mean-variance characteristics, the signal volatility greatly complements them in explaining the time series variation in trend-following excess returns. The results hold for both the buy and sell excess returns, are robust across stock markets, and conserve after considering explicit and implicit trading costs. Investors can use ex postsignal volatility estimates as a valid criterion to choose across potential trading rules, according to their specific levels of risk aversion and transaction costs. [ABSTRACT FROM AUTHOR]

Based on their own quality measure, Asness et al. (2019) document that quality stocks significantly outperform junk stocks. In this article, we attempt to explore the quality-based return patterns from behavioural perspective. The empirical findings demonstrate that the relative performance of quality stocks exhibits significant mood seasonality, i.e. the return spreads of quality and junk stocks decrease (increase) during high (low)-mood months. Furthermore, we also find that the return spreads exhibit significant mood recurrence and reversal effects proposed by Hirshleifer et al. (2020). All of these findings support the argument that mood would be an important source for the outperformance of quality stocks. [ABSTRACT FROM AUTHOR]

We compare the performance of various advanced forecasting techniques, namely artificial neural networks, k-nearest neighbors, logistic regression, Naïve Bayes, random forest classifier, support vector machine, and extreme gradient boosting classifier to predict stock price movements based on past prices. We apply these methods with the high frequency data of 27 blue-chip stocks traded in the Istanbul Stock Exchange. Our findings reveal that among the selected methodologies, random forest and support vector machine are able to capture both future price directions and percentage changes at a satisfactory level. Moreover, consistent ranking of the methodologies across different time frequencies and train/test set partitions prove the robustness of our empirical findings. [ABSTRACT FROM AUTHOR]

The purpose of this research was determine differences in stock portfolio performance before and during the pandemic on the LQ-45 and JII indexes. The performance measurement method used is the Sharpe, Treynor, and Jensen index. The population of this research is all shares of LQ-45 and JII companies listed on the Indonesia Stock Exchange during the period of a year before the pandemic, there are March 2019-February 2020, and a year during the pandemic, there are April 2020- March 2021. Then a sample of 34 companies was obtained for the LQ-45 and 19 companies for the JII index. The results of the analysis show that by using this method approach, there is no difference in portfolio performance before and during the covid-19 pandemic, both on the LQ-45 index and on the JII index. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Changzhou University (Social Science Edition) is the property of Editorial Department of Journal of Changzhou University 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.)

Measuring company efficiency is an important issue for both managers and investors. Efficiency measurement is always important because organizations are constantly striving to increase internal productivity. However, investors are more concerned about sustainability than many executives believe. Almost 75% of investment community respondents strongly believed that improvements in operational efficiency were often accompanied by progress in terms of sustainability. This study examined companies listed on the Taiwan 50 and Taiwan Mid-Cap 100 Indexes and measured and ranked their operational efficiencies, identifying representatives with high investment potential among these highly capitalized blue chip stocks from various industries. The results will provide managers with recommendations for improving operational efficiency through competitive mapping, as well as a list of the most attractive targets for investment. [ABSTRACT FROM AUTHOR]

Purpose: This paper investigates the relationship between information quality and stock returns during the International Financial Reporting Standards (IFRS 9) pre-adoption announcements and examines the influence of modern technology on these relationships across 24 emerging countries. Design/methodology/approach: This paper conducts an event study using data obtained from the DataStream, Osiris, International Telecommunication Union (ITU) and the World Bank databases from 2009 to 2014. The non-linear generalized additive model (GAM) was implemented to test the study hypotheses. Findings: Results indicate a significant positive non-linear relationship between low information quality and stock returns during IFRS 9 pre-adoption announcements. This result implies that IFRS 9 announcements have a positive impact on corporations with low pre-adoption quality information. This result is also more pronounced in small rather than large corporations and financial rather than nonfinancial institutions. Furthermore, modern technology plays a significant decisive antecedent role, while industry type has a moderating effect on the relationship between information quality and stock returns. The codified legal system has a positive impact on stock returns across emerging countries. Research limitations/implications: Data unavailability in some emerging countries. Practical implications: The empirical evidence provides useful guidelines for corporate managers, investors, international accounting standard-setters and regulators to improve financial reporting practices. Originality/value: This paper extends the work of Armstrong et al. (2010); Onali et al. (2017) by including the impact of non-linear relationships using GAM analysis and the role of modern technology across emerging countries. [ABSTRACT FROM AUTHOR]

This study explores the link between institutional quality, ethical behaviors of firms, and market regulations on stock market developments. The dynamic panel regression analysis and moderation analysis with single‐threshold modeling approaches were exploited to test the hypotheses. The results show that overall institutional quality with its six indicators are significant predictors of stock market development taking into account that they have varying influence on different stock market development proxy. Moreover, moderation analysis showed that the ethical behavior of firms and market regulations mostly acts as a substitute and sometimes acts as a complement for institutional quality in stock market development. [ABSTRACT FROM AUTHOR]

A sudden fall of stock prices happens during a pandemic due to the panic sell-off by the investors. Such a sell-off may continue for more than a day, leading to a significant crash in the stock price or, more specifically, an extreme event (EE). In this paper, Hilbert–Huang transformation and a structural break analysis (SBA) have been applied to identify and characterize an EE in the stock market due to the COVID-19 pandemic. The Hilbert spectrum shows a maximum energy concentration at the time of an EE, and hence, it is useful to identify such an event. The EE's significant energy concentration is more than four times the standard deviation above the mean energy of the normal fluctuation of stock prices. A statistical significance test for the intrinsic mode functions is applied, and the test found that the signal is not noisy. The degree of nonstationarity test shows that the indices and stock prices are nonstationary. We identify the time of influence of the EE on the stock price by using SBA. Furthermore, we have identified the time scale (τ) of the shock and recovery of the stock price during the EE using the intrinsic mode function obtained from the empirical mode decomposition technique. The quality stocks with V-shape recovery during the COVID-19 pandemic have definite τ of shock and recovery, whereas the stressed stocks with L-shape recovery have no definite τ. The identification of τ of shock and recovery during an EE will help investors to differentiate between quality and stressed stocks. These studies will help investors to make appropriate investment decisions. [ABSTRACT FROM AUTHOR]

During the Covid-19 pandemic, the Vietnamese government has actively implemented various policies to achieve dual objectives: (i) to minimize the loss of life due to the infection; and (ii) to support economic growth. This paper is conducted to examine the effect of the government's containment and closure policy on the stock market quality in Vietnam. Unlike other papers, we focus exclusively on market quality during the pandemic. We find that the policies appear to positively affect the market quality, except for closing-school policy (negative effect) and international travel (no effect). We argue that the government should sustain the policies until the wide availability of the vaccine to support the stock market quality in the near future. [ABSTRACT FROM AUTHOR]

Nitrogen (N) and light are critical determinants of plant growth and productivity. The present study attempts to quantify the underlying mechanisms and effects of light, N levels, and seed source on growth, biomass, nutrient allocations, and nutrient use efficiencies (NUEs) in seedlings of Pongamia pinnata. The differential and fixed hypothesis and isometric and allometric relationships were also examined. Six morphologically superior seed sources of P. pinnata from three contrasting agro-climatic conditions of India were evaluated with application of two levels of both N (low dose @ 5g plant−1 and 15 g plant−1) and light regimes (full light-100% and low light-50%) in mother nursery. Among the seed sources, the native Raipur seed source was found outstanding in growth, biomass, and nutrient use efficiency. N was more critical than light in promoting growth in seedlings of P. pinnata. High N and high light regimes increased shoot/root ratios. The components showed allometric growth and followed a differential allocation pattern. The exploitation of suitable genetic resources combined with managerial interventions is necessary for development of quality planting stock of P. pinnata. Nutrient use efficiencies, biomass production, and their allocation were important indicators and criteria for selection. The study suggests that Raipur and Jabalpur seed sources having high NUE should be grown along with adequate N application (15 g plant−1) and light conditions. [ABSTRACT FROM AUTHOR]

A survey of trout species was carried out to assess the trout stocks' quality inhabiting the Palena River Basin, one of the most important rivers for recreational angling in Chilean Patagonia. Six sampling campaigns were carried out over 16 selected stretches of the river between February 2012 and June 2013. A total of 912 trout were collected, 57% rainbow trout (Oncorhynchus mykiss), 33.3% brown trout (Salmo trutta), and 9.6% brook trout (Salvelinus fontinalis). Also, one tiger trout (Salmo trutta X Salvelinus fontinalis) (a hybrid between brown and brook trout) was recorded. Results showed that both rainbow trout and brown trout shared the same reaches of the river, with very similar feeding habits, while brook trout inhabited smaller and more enclosed streams. Maturity stages (V-VI) were recorded from the fish sampled over the period spring-summerautumn in the case of rainbow trout; autumn-winter for brook trout, and summer-autumn for brook trout. One of the study's most notable features was the small size of the mature brook trout, reaching 17.5 cm in length for gravid females and 12.4 cm for mature males at age 2+. The maximum age recorded for rainbow and brown trout was 6+, with a maximum length of 69.8 and 58.5cm, respectively, while for brook trout, the maximum age recorded was 3+ for a female with a length of 29.9 cm length and 2+ for a male of 16.6 cm. [ABSTRACT FROM AUTHOR]

Runoff from farm roadways within farm boundaries are acknowledged as a year-round source of pollutants discharging to surface water, particularly during the main grazing season (Feb-Nov) when their usage is high. These losses are considered to be a significant catchment scale pressure and have led to recent legislation in Ireland to prohibit direct runoff from farm roadways to waters with similar guidance in the UK and New Zealand. However, roadway runoff (RR) remains an undocumented and understudied part of the transfer continuum where knowledge gaps remain in relation to its quantity and composition and in relation to the impacts of RR management options on adjacent surface waters. Indeed some information on mitigation measure design and efficacy is only available from non-agriculture land uses e.g. forestry and needs to be presented in a farm specific context. The present review brings together knowledge on RR in terms of content on- or off-roadway management options and proposes alternative mitigation measures that may require pilot scale testing. Studies show that RR contains a mix of legacy (surface materials) and incidental (fresh urine and faeces) constituents such as phosphorus (P), Escherichia coli (E. Coli) and sediment which become temporarily mobilised during rainfall events. Once mobilised, the roadway network can quickly transport pollutants providing connectivity between farmyards, hard standings, underpasses where attached to a watercourse, fields and even public roadways to watercourses. Its contents are not dissimilar to dilute slurry or dairy soiled water with loads being highest where animals congregate (within 100 m of the farmyard or where roadway configuration or quality impedes stock movement along the network). On-roadway management options include regularly spaced diversion structures that divert runoff for passive treatment in a field or drainage ditch or the application of chemical amendments to roadway surfaces. Off-roadway options can include natural or enhanced features, which attenuate flow leading to settlement of suspended sediment and in some cases treatment of a percentage of the load before delivery to a watercourse. It should be noted that the options presented in this review need to be retrofitted to site specific conditions. Therefore, a number of factors, including their effectiveness, cost and management needs on a particular farm, as well as local regulation requirements will need to be considered prior to implementation. Therefore, only the measures that divert RR away from waters are applicable to Ireland. Future research should develop and validate a farm roadway risk assessment tool to identify vulnerable roadway sections that need management and/or re-design, and identify means of incorporating RR into catchment scale risk assessment models. In addition, design of on- and off-RR management options should consider the wide variations in farm configuration and management with regard to size, topography, soil type/drainage class, enterprise, intensity, scale, stage of development and the potential impacts of climate change. [ABSTRACT FROM AUTHOR]

The purpose of our study is to examine the dynamics of various liquidity proxies around specific price formation within intraday data. We examine the behavior of the measures representing price impact, depth of the market, its width and elasticity around intraday zero-return observations. Our sample is based upon quotations of blue chip stocks listed on the Warsaw Stock Exchange, one of the European emerging markets. This paper identifies an incoherent behavior of liquidity measures from different dimensions around intraday zero-returns. Although the transaction costs are lower and zero return configurations seem to offer better liquidity, this potential is not exploited as the trading activity measures decrease. The stock market is characterized by high resiliency as the observed changes in liquidity measures are short-term. [ABSTRACT FROM AUTHOR]

This paper shows how stock market volatility regimes affect the cross-section of stock returns along quality and liquidity dimensions. We find that, during crisis periods, low quality and low liquidity stocks experience relatively higher losses than predicted in normal times, while high quality and high liquidity stocks experience rather relatively lower losses. These findings lend strong support to the presence of cross-market and within-market flight-to-quality and to-liquidity episodes during crisis periods. During low volatility periods, however, low quality and low liquidity stocks earn relatively larger returns, while high quality and high liquidity stocks yield lower returns; suggesting that low volatility conditions benefit junk and illiquid stocks but not quality and liquid stocks. Finally, our results reveal that liquidity level dominates liquidity beta in explaining stock returns across the different market volatility regimes. [ABSTRACT FROM AUTHOR]

Copyright of Transformations in Business & Economics is the property of Vilnius University 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 present study investigates the determinants of stock market development and price volatility in a sample of the Association of Southeast Asian Nations (ASEAN) plus three countries. More specifically, the study explores the role of institutional quality indicators on stock market development and volatility. To achieve the objectives of the study, we use annual data from 1991 to 2014 and employ panel cointegration test, fully modified ordinary least square method, and heterogeneous noncausality test. Our empirical findings confirm the significant long‐run relationship among the variables. Similarly, our results of long‐run elasticities on stock market development and volatility indicate that the institutional freedom indicators such as regulation, size of the government, sound money, and trade freedom have significant positive effect on stock market development, and these indicators, along with legal system, have substantial negative impact on stock price volatility. We also find significant short‐run causalities of stock market development and price volatility with the macroeconomic variables. Given these results, our study suggests that the institutional freedom indicators not only promote stock market development, but they also effectively reduce stock price volatility in ASEAN plus three countries. [ABSTRACT FROM AUTHOR]

We test the hypothesis that if poor accounting quality (AQ) is associated with poor investor understanding of firms' revenue and cost structures, then poor AQ stocks likely respond more slowly than good AQ stocks to new non‐idiosyncratic information that affects both sets of firms. Consistent with this, results indicate that stock returns of good AQ firms significantly positively predict one‐month‐ahead stock returns to industry‐ and size‐matched poor AQ firms. In testing a delayed‐information‐processing mechanism behind the cross‐firm return predictability, we find that: (i) analyst earnings forecast revisions (FR) mimic the return patterns, as FR of good AQ firms significantly positively predict one‐month‐ahead FR of matched poor AQ firms; (ii) cross‐firm return predictability is concentrated in months with substantial news arrival, including months with Federal Open Market Committee (FOMC) rate announcements, but not in no‐news months; (iii) cross‐firm return predictability is stronger when the good AQ predictor firms have a richer information environment than poor AQ firms as proxied by analyst following, institutional ownership, and the presence of a Big 4 auditor. Collectively, the results uncover a new relation between accounting quality and stock return dynamics. [ABSTRACT FROM AUTHOR]

Investigations were carried on the eight identified lingo cellulosic ethanol feed stock viz., Acrocarpus fraxinifolius, Casuarina MTP 2, Chukrasia tabularis, Eucalyptus MTP 1, Melia dubia, Populus deltoids, Leucaena leucocephala and Thespesia populnea on order to identify the association of biometric attributes (height, basal diameter and volume index), physical and proximate characters (bulk density, basic density, acid insoluble lignin, moisture, holo- cellulose, fibre wall thickness, fibre diameter, fibre length and lumen diameter) of feed stock on ethanol yield. The study has revealed that holocellulose (0.416), volume index (0.325) and basic density (0.199) had exhibited signifi- cant positive correlation with ethanol yield. Whereas, moisture (-0.413) and bulk density (0.010) recorded negative and significant correlation and lignin (-0.343) showed negative and nonsignificant correlation with ethanol yield. Thirteen principal components were generated and five principal components viz., holocellulose (0.416), bulk den- sity (0.010), basic density (0.199), fibre length (0.594) and fibre diameter (0.144) had contributed maximum to ethanol yield and the other traits viz., lignin (-0.343), moisture (-0.413) and height (0.266) had exerted minimum contribution to ethanol yield. [ABSTRACT FROM AUTHOR]

The aim of this article is to examine the relationship between stock market performance and country level governance indicators. A good quality of governance in a country ensures effective implementation of laws which can protect the investor and improve stock market performance and vice versa. Our study utilises annual stock returns and country level governance indicators for 25 developed countries from 1996 to 2018. The fixed effect estimation suggests that stock market performance and governance indicators share a positive relationship. Our findings suggest that high quality of governance is associated with higher returns on stock. Institutional quality is a preconditioned for financial developed that set the direction of change to reduce transaction costs and agency costs and make profitable projects available to firms that subsequently leads to higher demand for equity financing. These findings have significant implications for stock market policymakers and standard asset pricing models that only include market risk factors to predict future expected stock returns. [ABSTRACT FROM AUTHOR]

Using SZSE's disclosure rankings data, this paper studies the relation between firms' disclosure quality and stock mispricing in emerging markets. We find that higher disclosure ranking grades, the proxy for disclosure quality, is associated with less stock misvaluation in the sense that market price deviates less from its fundamental. We also investigate the variation in this relation across industries and time. Our results document that the association between disclosure ranking grades and stock misvaluation is stronger for firms in more competitive industries. This finding suggests that higher disclosure ranking grades help draw more investors' attention, which will reinforce the role of corporate disclosure in reducing stock misvaluation. In addition, increase in disclosure ranking grades is more effective in reducing stock misvaluation in years prior to China's Split Share Structure Reform (SSSR), which is consistent with our conjecture that corporate disclosure is more valuable in promoting pricing efficiency when private information collection activities are less active. [ABSTRACT FROM AUTHOR]