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This article presents an augmented deep factor model that generates latent factors for cross-sectional asset pricing. The conventional security sorting on firm characteristics for constructing long–short factor portfolio weights is nonlinear modeling, while factors are treated as inputs in linear models. We provide a structural deep-learning framework to generalize the complete mechanism for fitting cross-sectional returns by firm characteristics through generating risk factors (hidden layers). Our model has an economic-guided objective function that minimizes aggregated realized pricing errors. Empirical results on high-dimensional characteristics demonstrate robust asset pricing performance and strong investment improvements by identifying important raw characteristic sources. [ABSTRACT FROM AUTHOR]

This study introduces a new measure of ex ante litigation risk using scrutiny of SEC filings by the source of securities litigation (plaintiffs' lawyers) to reduce measurement error, relative to existing measures. We show that plaintiff-lawyer views proxy for the largely unobservable factors that make firms more likely to face litigation risk. Lagged views precede the public bad news revelation that triggers litigation and predicts future realized litigation risk (i.e., securities class actions filings and plaintiff-lawyer investigations) and stock market outcomes. Finally, we provide new insights into the plaintiff-lawyer case selection process that otherwise cannot be observed. [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.)

We provide empirical evidence on the bargaining power model proposed in Hu and Ritter (2007) by examining the financial constraints channel on the direct and indirect cost of going public. We find that financially constrained firms possess lower bargaining power and thereby incur higher direct costs (gross spreads) and higher indirect costs (underpricing) in an IPO. Consistent with the bargaining power model, we find that IPOs of financially constrained firms are usually managed by sole bookrunners and underwritten by smaller syndicates. Finally, we find that these financially constrained IPO firms underperform their non-financially constrained IPO peers in the long term. These results are robust to multiple endogeneity tests. [ABSTRACT FROM AUTHOR]

The unique identification of securities is the basic building block of financial markets. It is impossible to trust anything else about a security without first knowing what is being bought and who is selling it. Security identifiers provide that critical function almost invisibly, allowing trades to be executed, cleared, settled and tracked in a standardised, consistent manner across the countless individual portfolios and security master files that make up the global financial system. This concept is so fundamental and critical to the efficient operation of our financial markets that it is often taken for granted. Two recent trends, however, have forced a closer look at the underlying governance structure of security identifiers as a potential source of trade settlement failure and confusion among market participants. The rise in popularity of reverse stock splits and the introduction of alternative securities identifiers that use a different approach to cataloguing these types of corporate actions has created a scenario in which market participants using different securities identification taxonomies will see the same underlying security two different ways. The phenomenon puts a spotlight on the issue of securities identifier permanence and raises serious questions about when an identifier needs to change to address corporate actions. This paper argues that the approach utilised in the governance of the Committee on Uniform Securities Identification Procedures (CUSIP) and International Security Identification Number (ISIN) identifiers, whereby identifiers change in response to corporate actions, is critical to the maintenance of efficient financial markets. [ABSTRACT FROM AUTHOR]

This Article uses a massive collection of data to document, for the first time, the interplay between the substantive subject areas, the intensity, and the procedural complexity of federal civil litigation. The results indicate that like substance, intensity and complexity are pivotal features of litigation. These findings suggest that what might be termed "our uniformity"--the de jure uniform applicability of the Federal Rules of Civil Procedure and other procedural law--should be understood as a broader phenomenon than the traditional focus on transsubstantivity. The Article documents extensive variation in measures of intensity and complexity among cases sharing the same broad substantive legal subject matter, such that intensity and complexity may vary more importantly within than across substantive areas. For example, it is true that patent cases have comparatively high average intensity as measured by their numbers of docket entries, but there are also plenty of patent cases that terminate without having enormous docket activity. It is also true that patent cases are much more likely than, say, contract cases to be extremely intense, but because there are so many more contract than patent cases, my data have nearly twice as many highly intense contract cases as highly intense patent cases. The Article's twin key conclusions are, thus: (1) even for cases in areas thought to be especially intense or complex, there are cases with both high and low intensity and complexity, and (2) intensity and complexity are transsubstantive--e.g., there are highly intense and highly complex cases in most substantive areas of litigation, not just the usual suspects such as patents, antitrust, or securities. The Article closes by treading gingerly into normative waters. One unavoidable consequence of our uniformity with respect to formal procedural rules is that judges exercise enormous case-level discretion. Further, in part due to legislative forays in the securities and patent arenas, we have some degree of substance-specificity in our procedure. The Article suggests considering formal procedural tracking as an alternative to each of these approaches. That approach, which has been suggested in the past and is used in some states and other countries, might allow us to break out of some of our ossified debates about matters such as the rancor set off by the pleading revolution the Supreme Court effected a decade and a half ago in Twombly and Iqbal. If the plausibility standard is here to stay because of its role in limiting intense and complex litigation, perhaps it could be revisited in simpler cases that don't pose the challenges the Supreme Court first flagged in Twombly. Whether this is possible depends on our capacity to identify cases' likely intensity and/or complexity early in the litigation life cycle, which is a topic beyond the scope of this Article. Still, we ought to consider the possibility of a certification process for intense, complex cases, like the one we have for class actions, so that procedure might be adjusted where doing so makes sense. The Article's contributions include its use of docket-level data on more than 500,000 cases whose dockets could be followed for at least seven years. In addition, the Article offers a novel approach to measuring procedural complexity by showing how links between entries in docket reports may be viewed as mathematical networks. [ABSTRACT FROM AUTHOR]

Copyright of Taiwan Law Review is the property of Angle Publishing Co., Ltd 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.)

Considering that Article 67 (6) of the Law No 31/1990, republished, regulates only the hypothesis of the distribution of dividends in the case of the transfer of shares, we propose to clarify whether the solution chosen by the legislator also applies in the case of the capitalization of securities within the enforcement that is carried out by way of a sale (amicable, direct or forced), respectively if it also applies in the case of transfers of social shares. On the other hand, as the dividends are affected by a double suspensive condition, namely the registration of a profit by the company and the existence of a GAA (General Assembly of Associates) decision to distribute this profit, we propose to criticize the solution of the courts of law that assessed that the dividends belong to the owner of the social shares from the fiscal year in which profit was made, being irrelevant that later the shares were transferred, and the decision of the GAA to establish and distribute the dividends was made later, respectively when the transferor was no longer an associate. [ABSTRACT FROM AUTHOR]

Generative AI (GenAI) is a technology that, since the launch of ChatGPT in November 2022, has taken the world by storm. While a lot of the conversation around GenAI is hype, there are some real applications of this technology that can bring real value to businesses. There are, however, risks in applying this technology blindly that sometimes can outweigh the value it brings. This paper discusses the potential applicability of GenAI to the processes in post-trade and what impact it could have on financial institutions and their ability to meet challenges in the market, such as T+1. We also discuss the risks of implementing this technology and how these can be mitigated, as well as ensuring that all the objectives are met not only from a business perspective, but also technology and compliance. [ABSTRACT FROM AUTHOR]

Copyright of Taiwan Law Review is the property of Angle Publishing Co., Ltd 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.)

This article focuses on testing for the presence of alpha in time-varying factor pricing models, specifically when the number of securities N is larger than the time dimension of the return series T. We introduce a maximum-type test that performs well in scenarios where the alternative hypothesis is sparse. We establish the limit null distribution of the proposed maximum-type test statistic and demonstrate its asymptotic independence from the sum-type test statistics proposed by Ma et al. Additionally, we propose an adaptive test by combining the maximum-type test and sum-type test, and we show its advantages under various alternative hypotheses through simulation studies and two real data applications. [ABSTRACT FROM AUTHOR]

Purpose: In pursuit of objectives, under the European Green Deal, to channel capital flows to sustainable activities, the EU Taxonomy offers clarity, labelling real economic activities as "sustainable", based on technical screening criteria. This study of disclosure experiences aims to explore the role of co-evolutionary relationships in the Taxonomy's effectiveness. Design/methodology/approach: Co-evolution theory implies a dynamic interplay among sustainable finance stakeholders (SFSs), through adjustment to, impact on and operationalisation of the Taxonomy. Corporate disclosure experiences, including those of financial institutions and related SFS experiences, may reveal co-evolutionary processes. With significant Undertakings for Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs), Irish SFSs provide contextual insight. Semi-structured interviews with a purposive sample of Irish SFSs capture inaugural corporate Taxonomy disclosure experiences. Findings: A thematic analysis reveals six co-evolutionary processes that facilitate Taxonomy implementation in pursuit of policy objectives: [1] cross-functional reporting; [2] iterative pre-empting and addressing compliance issues; [3] regulation as a catalyst for co-evolution; [4] advanced capacity building; [5] stakeholder adaptation and [6] graduated use of ESG data. Implications for sustainability policy development and management are significant. Practical implications: Whilst limited to just one EU jurisdiction, given limited prior empirical evidence for sustainable finance regulations from co-evolutionary perspectives, this study highlights a catalytic, yet precautionary role for co-evolution in their transformation effectiveness. As such, they must take account of their potential to stimulate co-evolution and to nurture it in pursuit of their policy objectives. Social implications: The findings of this study add to a small, but growing body of academic literature on the Taxonomy Regulation, which suggests that a co-evolutionary lens is important for gaining a comprehensive understanding of its early-stage dynamics. From an implementation perspective, the qualitative data reveals actionable implications for regulators and policymakers, such as building capacity, better anticipation of outcomes and investment in data infrastructure. Originality/value: Unlike existing analyses of disclosures, this study offers a co-evolutionary lens on Taxonomy contributions to sustainable development through qualitative accounts. [ABSTRACT FROM AUTHOR]

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter 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.)

Features of the current stage of development of Russia increase the relevance of studying problems associated with the expansion of internal sources of financing economic growth, one of which may be citizens’ savings. To attract private capital more widely, the national financial system can and should provide a large range of tools for private investors that meet the needs of citizens in terms of profitability and safety of funds. The paper has considered the key tools of retail investment, which are currently widely used in domestic practice. Alternative ways of private investment have also been explored. They can be applied depending on the needs of specific actors, market participants, or citizens. The development of a line of instruments for the retail investment – deposits, long-term individual investment accounts, products of research and production associations, insurance products, etc., their availability is one of the conditions for the effective functioning of the domestic financial market and, as a consequence, the Russian economy as a whole. The analysis of the essence, trends, opportunities, and risks of the retail investment instruments will allow us to assess the effectiveness of the activities of financial regulators in this area and identify promising and appropriate areas for its improvement.

We investigate the effect of scrutiny (e.g. credit ratings, analyst reports, or mandatory disclosures) on the security design problem of a privately informed issuer. We show that scrutiny has important implications for both the form of security designed and the amount of inefficient retention of cash flows. The model predicts that issuers will design informationally sensitive securities (i.e. levered equity) when scrutiny is sufficiently intense. Otherwise, issuers opt for a standard debt contract. Scrutiny increases efficiency by decreasing issuers' reliance on retention to signal quality and, perhaps counterintuitively, decrease price informativeness. [ABSTRACT FROM AUTHOR]

Open-end mutual funds can use redemption in kind to satisfy investor redemptions by delivering securities instead of cash. We find that funds that reserve their rights to redeem in kind experience less redemption after poor performance. Evidence from actual in-kind transactions reveals several unique mechanisms for redemption in kind to mitigate fund runs, including the delivery of more illiquid stocks and stocks with greater tax overhang. Funds suffer less from the adverse impact of outflows on their performance. However, redeeming investors bear significant liquidation costs when they sell securities, costs associated with destabilization in the prices of these securities. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

This study delves into the optimization of investment portfolios within the Unified Accumulative Pension Fund in Kazakhstan, employing the Quasi-Sharp model as a pivotal tool. Through a meticulous analysis of the UAPF's investment portfolio evolution, this research scrutinizes shifts in asset allocation and their ramifications on investment returns. The Quasi-Sharp model, a tailored adaptation of the Sharpe model, is harnessed to ascertain the optimal equilibrium between profitability and risk in pension asset management. The STATA program was used to calculate the indicators. Results divulge the imperative role of diversification across various asset classes in mitigating risk while maximizing returns. Optimal investment portfolios are meticulously crafted, considering an array of financial instruments such as stocks, bonds, and bank deposits. The findings underscore that while stocks proffer higher potential returns, bonds offer stability and lower risk. Additionally, bank deposits exhibit stable returns, albeit with limited growth prospects. The study revealed that the maximum expected return with a risk limit of less than 5% could be provided by a portfolio including shares of Halyk Savings Bank of Kazakhstan, Kcell, and KazTransOil in the ratio of 57%, 32%, and 11%, respectively. Key recommendations for investors encompass regular monitoring of market dynamics, diligent assessment of risk tolerance, and recourse to professional advice when warranted. This study furnishes invaluable insights for pension fund managers and investors endeavoring to augment portfolio performance while adeptly managing risk within the Kazakhstani market landscape.

The purpose of this research is to explore and summarize aspects of the current state and development trends in Albania's banking sector. The analysis shows that the banking system dominates the country's financial landscape, while the securities market remains nascent. Adverse inflationary dynamics are also observed. The research demonstrates dependencies between key banking indicators like non-performing loans, capital adequacy ratio and money supply on economic factors. The prospects for Albania's banking sector are challenged by the volatile global economy, however promoting lending, improving asset quality and supporting businesses can help establish stability. Expanding the securities market can also assist banking sector growth. The practical significance is that the identified trends and relationships can inform policy decisions to facilitate robust banking sector performance. [ABSTRACT FROM AUTHOR]

Copyright of China Forest Products Industry is the property of China Forest Products Industry Editorial Office 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.)

We draw on (Merton, The Journal of Finance 42:483-510, 1987) to develop predictions for the benefits of voluntary disclosures by firms pursuing an initial public offering (IPO) prior to when they begin providing regulated financial information via their IPO prospectus. We find that voluntarily issuing press releases and attending investor and industry conferences are common disclosure activities prior to filing the IPO prospectus. Consistent with these disclosures enhancing investor awareness, we find positive associations with subsequent information acquisition by prospective investors and the financial press during the IPO filing period. These relations remain significant in tests exploiting the passage of the 2005 Securities Offering Reform as a source of variation in issuers' ability to provide disclosures designed to attract attention from prospective investors. Consistent with pre-prospectus disclosures enhancing the visibility of the firm, we find that, while direct associations between pre-prospectus voluntary disclosures and IPO pricing are limited, there are significant indirect effects operating through filing-period information acquisition by prospective investors and media coverage. We find no evidence that issuers' disclosure activities serve as hype, as the IPO price impact does not reverse post-offering. Overall our evidence is consistent with pre-prospectus voluntary disclosures benefiting issuers by enhancing awareness, which leads to improvements in firm valuations. [ABSTRACT FROM AUTHOR]

We develop and implement methods for determining whether introducing new securities or relaxing investment constraints improves the investment opportunity set for prospect investors. We formulate a new testing procedure for prospect spanning for two nested portfolio sets based on subsampling and linear programming. In an application, we use the prospect spanning framework to evaluate whether well-known anomalies are spanned by standard factors. We find that of the strategies considered, a few of them expand the opportunity set of the prospect type investors and thus have real economic value for them and involve absence of loss aversion. Those are the net stock issue anomaly under the FF-5 model, the momentum and net stock issue anomalies under the M-4 model, and the momentum anomaly under the q model. In-sample and out-of-sample results prove remarkably consistent in identifying genuine anomalies for prospect investors. This paper was accepted by Will Cong, finance. Supplemental Material: The data and online appendix are available at https://doi.org/10.1287/mnsc.2023.4953. [ABSTRACT FROM AUTHOR]

Market tightness in equity securities is an integral component of trading because it supports smooth trading and absorb market shocks. However, the contention has always been to effectively determine the level of tightness in equity securities with the application of proper methodology to make informed decisions. Therefore, aim of this study was to examine the level of market tightness in selected stocks in the Johannesburg stock exchange. Using a variance ratio model, the findings of this study indicates that most securities trading on the exchange lack market tightness. This was evident in the difference between the one, two- and three-months variances that were not equal to one. Therefore, a specialist system should be introduced to facilitate the execution of trades without significantly moving the prices of equity securities. This study improves the frontier of knowledge regarding liquidity management, by empirically investigating the market tightness of equity securities. [ABSTRACT FROM AUTHOR]

Since securities market is subject to a great deal of uncertainty and complexity, the return of securities cannot be accurately estimated by historical data. In this case, it must use experts' knowledge and judgment. Therefore, we investigate portfolio selection problems in such uncertain environments. First, this paper regards the rate of return on security as an uncertain variable which obeys linear uncertainty distribution, and then provides the analytical expressions of the corresponding risk, return and risk index in the uncertain portfolio selection environment. Afterwards, we construct three types uncertain portfolio selection models with uncertain constraint, namely, the minimizing risk, the maximizing return and the maximizing belief degree. Meanwhile, in order to more intuitively reflect the investor's sense of loss, three types uncertain portfolio selection models considering both uncertain constraint and risk index are also constructed. These models are transformed into corresponding deterministic models. Finally, through an example analysis, this paper obtains the portfolio selection strategies under different objectives, compares the results under different models, and analyzes the sensitivity of the parameters. [ABSTRACT FROM AUTHOR]

In initial public offerings (IPOs), underpricing refers to pricing the issue at a price lower than its fair value which results in the listing price being much higher than the issue price. This higher information asymmetry results in more underpricing. To reduce such asymmetry, the Securities and Exchange Board of India (SEBI) introduced IPO grading and anchor investor participation in India. This article aims to assess the impact of these two factors on the underpricing of Indian IPOs over 2007–2017. This study uses multivariate regression analysis to compare the impact of graded versus ungraded IPOs and of anchor-backed versus non-anchor backed IPOs on underpricing; it finds that IPO grading and anchor investment do not have a significant overall impact on underpricing. These results justify the scrapping of mandatory IPO grading. Although insignificant, IPO grading has a greater influence on underpricing than anchor investor participation. Furthermore, the current study also analyses the subscription patterns of qualified institutional buyers (QIBs), non-institutional investors (NIIs) and retail individual investors (RIIs) and their influence on one another. Accordingly, it reveals that QIB subscription influences both NII and RII subscriptions. [ABSTRACT FROM AUTHOR]

The activity of the stock exchange has increased significantly in the country. The expansion of the segment of private investors is especially noticeable. This directly depends on the economic stability in the country, the level of inflation, and the growth of real incomes of the population. Therefore, the focus should be on stability in the country, improving the well-being of the population, economic growth, the monetary system, and the activity of business entities. The pandemic also influenced the growing interest of individuals in buying securities. Private investors began to consider alternative sources of bank deposits, ways to generate additional income. In addition, the digitalization of brokerage services provided everyone with access to investing. Since 2020, second-tier banks have received permission to conduct brokerage activities, which has increased their activity. Now individual banks of the country (Halyk Bank, Bank Center Credit) can sell securities through mobile applications. Now work is underway to increase activity in the securities market not only of large companies, but also of small and medium-sized businesses. Therefore, it is very important that the state at the initial stage carries out systematic work to intervene, support and regulate the securities market. The article discusses the need to develop the stock market and issues of government regulation in the country. The importance, main goal, tools and methods of implementing state regulation of the securities market are indicated, and current problems are identified and ways to solve them are proposed. [ABSTRACT FROM AUTHOR]

The Southern District of New York's July 2023 decision in SEC v. Ripple Labs, Inc. has been touted as a monumental win for cryptocurrency purchasers and related businesses. The Ripple court held that, except institutional investor transactions, all sales of Ripple's XRP token were not investment contracts, a class of security subject to federal securities law. The court's ruling meant that Ripple could not be held liable for the unregistered trading of XRP beyond its sales to institutional investors. Ripple adds new insights to a pervasive policymaking dilemma addressed in this Note: is the Securities and Exchange Commission's (SEC) regulatory approach effectively serving purchasers? This Note answers this question in the negative and explores the disconnect between the SEC's approach and the actual protection of purchasers. First, it briefly surveys the value of cryptocurrency like XRP to outline the many forms digital assets take beyond a passive, speculative investment. Second, it outlines the framework for SEC enforcement under the Supreme Court's Howey test for "investment contracts" and securities registration requirements in Section 5 of the Securities Act. Third, it examines the Ripple court's holding regarding reasonable expectation of profit to distinguish XRP trading activity from investment contracts under Howey. Fourth, it contends that the Ripple court's focus on enforcing securities law to protect reasonable investor expectations of profit is a proper step toward addressing a larger regulatory disconnect between the SEC and the investing public it is entrusted to serve. [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: Stockbrokers' frauds in India frequently occur, causing investors significant financial loss. This study aims to unfold the various dubious practices adopted by stock brokers in the recent past to defraud investors and the necessary corrective regulations passed by the market regulator to prevent and detect fraud. Design/methodology/approach: The authors conduct exploratory research using a collective model of literature review, case studies and regulatory changes. Findings: The authors find tightening the system's loopholes and strengthening the regulatory system using technology helps in the early detection and prevention of fraud. Media activism and investors' awareness play a role in reducing incidences of fraud. Research limitations/implications: This study unfolds the practices followed by stock brokers to defraud investors, indicative of regulatory gaps and enforcement lapses. Regulators are evolving a robust system to curb these practices and make them on par with international standards. But, it has a long way to go. Practical implications: Robust fraud detection and prevention mechanism is desirable to restore investors' confidence in the stock market. Regulators should focus on investors' protection and education and whistleblowers' protection. Compared to the market regulators worldwide, the Securities and Exchange Board of India has less power to identify, detect and punish fraudulent brokers and needs to be empowered. Social implications: Besides the regulatory changes, strict enforcement and investor campaigns are required to increase public awareness and restore trust in the stock market to combat the recurrence of fraud. Originality/value: This paper can be helpful to regulators, investors and financial intermediaries like stock brokers and aid in strengthening the reliability of capital markets and restoring investors' confidence. [ABSTRACT FROM AUTHOR]

To understand deviations from covered interest parity (CIP), it is crucial to account for heterogeneity in funding costs across both banks and currency areas. For most market participants, the no-arbitrage relation holds fairly well when implemented using marginal funding costs and risk-free investment instruments. However, a few high-rated banks do enjoy CIP-arbitrage opportunities. Dealers avert inventory imbalances stemming from lower-rated banks' usage of FX swaps to obtain dollar funding by inducing opposite (arbitrage) flows from high-rated banks. Arbitrage trades are difficult to scale, however, because funding costs increase as soon as arbitrageurs increase positions. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

In recent years, and particularly in the last decade, the behavior of economic agents and the motivations that influence their investment decisions have been the subject of study by researchers in fields such as economics and finance. One of the most intriguing phenomena is the so-called Herd Effect, also known as mimetic behavior. In the present work, the authors use the methodology proposed by Chang, Cheng, & Khorana (2000) applied to the Chilean stock market between the years 2013 to 2023 to verify the existence of the herd effect. By not finding significance in the parameters of the model described in the previous paragraph (original), the authors propose the existence of lags in the returns of the securities studied, in the face of changes in the market, which caused a significant improvement in the estimates. The authors conclude that there is no significant evidence to ensure that Chilean investors are affected by the herd effect in the study period. [ABSTRACT FROM AUTHOR]

Plaintiffs' lawyers in the United States play a key role in combating corporate fraud. Shareholders who lose money as a result of fraud can file securities class actions to recover their losses, but most shareholders do not have enough money at stake to justify overseeing the cases filed on their behalf. As a result, plaintiffs' lawyers control these cases, deciding which cases to file and how to litigate them. Recognizing the agency costs inherent in this model, the legal system relies on lead plaintiffs and judges to monitor these lawyers and protect the best interests of absent class members. Yet there is remarkably little data on the business of securities class action lawyers, leaving lead plaintiffs and judges to oversee this area without the tools to understand how it works. This Article looks inside the black box of securities class action lawyering to explore the business behind these cases. Our study includes hand-collected data on all securities fraud class actions against public corporations filed between 2005 and 2018, a total of nearly 2500 cases. We find that the business of securities class action lawyering is far more complex than prior scholarship has recognized. Contrary to conventional wisdom, there are not two tiers of plaintiffs' law firms; instead, there are multiple tiers of firms, each with its own client base, litigation patterns, and revenue model. Our study gives lead plaintiffs and judges the data and tools they need to understand these tiers and to compare the performance of the law firms within them. We also examine how these law firms are compensated, finding that judges' fee awards fail to account for the difficulty of cases or the risk of nonrecovery in any systematic way. These fees are crucial to ensuring that law firms pursue the right cases on behalf of shareholders, so we suggest ways that judges can use data to improve fee awards. As we will see, the path to reforming securities class actions starts with understanding the business behind them. [ABSTRACT FROM AUTHOR]

A recurring theme in the literature and discussion of stock market analysis is the concept of the January effect which essentially implies buy in December and sell in January. The January effect is based on the perceived seasonality trend where short term investors hope to take advantage of the arbitrage opportunity between December and January. However, this perceived anomaly continues is seen as a myth and has been strongly rejected by many market participants in the current dispensation. The purpose of this paper was to investigate the January effect in the Nikkei 225, JSE, CAC 40, DAX, and the NASDAQ Index from February 2019 to February 2024. A F-test statistics was used to explore the phenomenon. The findings indicated that there is no significant difference between the realised returns in January and those of the other month for the most recent five years. This led to the conclusion that, while the January effect may have been observed, it is no longer evident in financial markets, hence market participants should avoid using this type of arbitrage approach because it may result in massive losses. [ABSTRACT FROM AUTHOR]

The article suggests that though social media statements are not yet rich fodder for securities fraud allegations, social media statements are the basis of some lawsuits and prosecutions. Topics discussed include an overview of the ways in which the federal securities laws prohibit false statements made in connection with the purchase and sale of securities and ways in which various non-issuer marketplace participants engage with each other online.

This paper investigates the use of catastrophe (CAT) bonds as a risk management tool for wildfires. We introduce a set of Bayesian dynamic models designed to accurately represent wildfire losses, allowing a thorough examination of wildfire CAT bond pricing and hedge effectiveness. Our model captures crucial attributes of wildfire data, such as zero inflation, overdispersion, temporal fluctuations, and spatial dependence. Employing extensive quantitative analyses of US wildfire data, we highlight that CAT bonds can substantially mitigate tail risk associated with insurers' liability. Importantly, index‐based CAT bonds, drawing their payouts from aggregate wildfire losses over a larger geographical scope than an insurer's operational area, also provide effective hedges. Our research underscores the potential of wildfire CAT bonds as an enhancement to traditional reinsurance strategies, offering insurers an improved means to manage and mitigate wildfire exposures amidst inherent uncertainties. [ABSTRACT FROM AUTHOR]