Dynamic Estimation on Output Elasticity of Highway Capital Stock in China

Science.gov (United States)

Li, W. J.; Zuo, Q. L.; Bai, Y. F.

2017-12-01

By using the Perpetual Inventory Method to calculate the capital stock of highway in China from 1988 to 2016, the paper builds the State Space Model based on Translog Production Function, according to the Ridge Regression and Kalman Filter Method, the dynamic estimation results of output elasticity are measured continuously and analyzed. The conclusions show that: Firstly, China’s growth speed on highway industry capital stock are divided into three stages which are respectively from 1988 to 2000, from 2001 to 2009 and from 2010 to 2016, during which shows steady growth, between which reflect rapid growth; Secondly, the output elasticity of highway capital stock, being between 0.154 and 0.248, is slightly larger than the output elasticity of human input factor, lower than the output elasticity of the technical level, shows positive effect on transport economy and rises steadily, but the output efficiency is low on the whole; Thirdly, around the year of 2010, the scale pay on highway industry begins to highlight the characteristic of increase.

Triads of capital

DEFF Research Database (Denmark)

Svendsen, Gunnar Lind Haase

of capital means a coherent stock of capital, including social, cultural and physical capital, which belongs to a local community. The case of civic organization in rural Denmark 1800-1900 shows how the three capitals successively acted as driving forces: physical capital about year 1800, social capital...... about year 1880, and cultural capital about year 1900. In each case, one form of capital changed the two others in a chain reaction process, which ultimately led to a major reorganization of the triads of capital in the local rural communities....

The impact of intellectual capital on firm performance: Evidence from Tehran Stock Exchange

Directory of Open Access Journals (Sweden)

Mehran Matinfard

2015-11-01

Full Text Available The aim of the present research is to study the relationship between intellect capital components and performance evaluation indicators. For measuring intellectual capital, the study uses Pulic’s method [Pulic, A. (2000. VAIC™–an accounting tool for IC management. International Journal of Technology Management, 20(5-8, 702-714.], which consists of three components of physical capital efficiency, human capital efficiency and structural capital efficiency. In the present study first, the value of the intellectual capital of the companies listed on Tehran Stock Exchange over the period 2006-2012 is calculated. Next, the relationship between the components of intellectual capital and financial return of the companies are evaluated. For calculating the financial performance 8 performance indicators in 5 groups presenting market value, profitability, activity, capital return, orientation on value creation are used. In the present research the statistical method used for data analysis is multiple regression and correlation coefficients. The selected sample of research includes 73 companies in continuous way for a time period of 7 years and the size of the company has been considered as a control variable. The findings indicate a positive and significant relationship between intellectual capital and financial performance of companies and a positive effect of the size of company on availability rate of intellectual capital and financial performance of a company.

STOCK EXCHANGE LISTING INDUCES SOPHISTICATION OF CAPITAL BUDGETING

Directory of Open Access Journals (Sweden)

Wesley Mendes-da-Silva

2014-08-01

Full Text Available This article compares capital budgeting techniques employed in listed and unlisted companies in Brazil. We surveyed the Chief Financial Officers (CFOs of 398 listed companies and 300 large unlisted companies, and based on 91 respondents, the results suggest that the CFOs of listed companies tend to use less simplistic methods more often, for example: NPV and CAPM, and that CFOs of unlisted companies are less likely to estimate the cost of equity, despite being large companies. These findings indicate that stock exchange listing may require greater sophistication of the capital budgeting process.

CAPITAL STRUCTURE DETERMINANTS: EVIDENCE FROM PALESTINE AND EGYPT STOCK EXCHANGES

Directory of Open Access Journals (Sweden)

Abdul Razak Abdul Hadi

2017-04-01

Full Text Available Abstract -This study is driven by the motivation to examine the capital structure determinants for Palestine Stock Exchange (PEX and Egypt Stock Exchange (EGX. Within the framework of capital structure theories, this study uses Generalized Method of Moments (GMM,1982 as an estimation model employing quarterly panel data analysis during the observed period from 2008 till 2012. The test results from GMM indicate that all the examined determinants have significant relationship with leverage. It has a negative value with liquidity, non-debt tax shield, profitability, size and growth. The Egyptian firms have some uniqueness in its trend. Current assets, debt ratio and liquidity behave positively with leverage except for growth. The other tested determinants in Egyptian companies are found to be not significant.

Share capital in stock corporations under Polish law. Nature – functions – perspectives

Directory of Open Access Journals (Sweden)

Zdzisław Gordon

2010-12-01

Full Text Available Share capital of stock corporations is a monetary value whose equivalent shareholders are obliged to contribute to a company, and which cannot be paid back by a company to shareholders throughout its duration. Share capital exercises three functions: legal, economic and security-enforcing. From a traditional perspective the security (guarantee function is the most important and it entails that share capital constitutes a guarantee of protecting a company’s creditors. In the literature, however, the ability of share capital to perform this function has been more and more often undermined and consequently proposals are put forward to resign from the construction of share capital. The decision to reform share capital of a limited liability company in Polish law, too, seems already to have been decided upon. It is, however, unacceptable to completely resign from the protection of creditors’ interests since the law must provide protection for weaker participants of trading such as small entrepreneurs in relation to stock companies. A serious alternative to share capital, however, seems to be the protection of creditors through the so-called solvency test, which subjects the payments for the benefit of shareholders to the condition that a company’s assets at least balance its liabilities after such a payment. The protection of creditors based on the solvency test is not, however, free from faults. If the construction of share capital was to be resigned from and the solvency test was to be adopted to serve the function of a means of protecting creditors, it seems necessary to develop a characteristic buffer which would prevent using the construction of a limited liability company in high risk ventures and shifting a considerable amount of this risk on to the company’s business partners, not to mention defending against making use of it for common fraud. The role of such a buffer might be played by an obligatory reserve capital based on the

An Economical Approach to Estimate a Benchmark Capital Stock. An Optimal Consistency Method

OpenAIRE

Jose Miguel Albala-Bertrand

2003-01-01

There are alternative methods of estimating capital stock for a benchmark year. However, these methods are costly and time-consuming, requiring the gathering of much basic information as well as the use of some convenient assumptions and guesses. In addition, a way is needed of checking whether the estimated benchmark is at the correct level. This paper proposes an optimal consistency method (OCM), which enables a capital stock to be estimated for a benchmark year, and which can also be used ...

Stock Splits and Liquidity for Two Major Capital Markets from Central–Eastern Europe

Directory of Open Access Journals (Sweden)

Józef Rudnicki

2012-12-01

Full Text Available In the stock market there occur some events that contradict the efficient market hypothesis therefore they are called anomalies. One of the mysterious corporate events which has attracted the attention of numerous researchers is a stock split. I perform the review of implications of splitting the stock for market liquidity of companies listed on the Warsaw Stock Exchange and the Vienna Stock Exchange. I use event study, in particular Market model method and Market adjusted return method, to inspect the behavior of abnormal changes in daily trading volume for stock splits performed between 2000 through 2011 over a short run and assuming a longer time interval. Moreover, I juxtapose the results for both stock exchanges to examine whether the stock split phenomenon for two major capital markets from this part of Europe can be better explained by means of existing theories on stock splits. The research is aimed at analyzing the implications of the split for market liquidity, i.e. whether there occurs an immediate effect following the split as well as whether this corporate event improves the level of market liquidity over long run. Furthermore, the goal of the paper is to investigate whether the investors can cash in on the stock split, more specifically, whether they can profit from lower transaction costs. I document a significant growth in the market liquidity of stock splitting firms over 36 months following the split for both capital markets what is indicative of lower transaction costs for investors. The 1–percent significant results are consistent with the liquidity hypothesis on stock splits.

Estimating temporary and permanent stock price innovations on Croatian capital market

Directory of Open Access Journals (Sweden)

Tihana Škrinjarić

2014-03-01

Full Text Available This paper evaluates the size and duration of temporary and permanent stock price innovations on Croatian capital market in the structural VAR (vector autoregression framework with Blanchard and Quah (1989 decomposition. The purpose is to identify the effects of temporary price innovations in order to determine to which extent future stock prices can be predicted. Temporary components present in stock prices are explained throughout the mean-reversion hypothesis. This means that stock prices deviate from the fundamental values, but they will revert to their mean. In that way, to some extent, it is possible to predict future price movements. The results show that for the observed period from January 2000 to September 2013, temporary innovations account for only 2.62% of price variability over a two-year horizon. This means that forecasting the future movements of stock prices on Zagreb Stock Exchange is a difficult task.

EFFECT OF INTELLECTUAL CAPITAL, CAPITAL STRUCTURE AND MANAGERIAL OWNERSHIP TOWARD FIRM VALUE OF MANUFACTURING SECTOR COMPANIES LISTED IN INDONESIA STOCK EXCHANGE (IDX PERIOD 2010-2014

Directory of Open Access Journals (Sweden)

Hamidah Hamidah

2015-09-01

Full Text Available The purpose of this study is to know the effect of Intellectual Capital, Capital Structure and Managerial Ownership on Firm Value in Manufacturing Company Listed on Indonesia Stock Exchange in 2010-2014. In this research, intellectual capital can be seen from VACA (Value Added Capital Employed, VAHU (Value Added Human Capital, and STVA (Structural Capital Value Added. The research model in this study employs panel data analysis. The samples are manufacturing companies listed in Indonesian Stock Exchange in 2010-2014 selected by purposive sampling. The result show that VACA and STVA has negative and not significant effect on firm value (Tobins’Q. Whereas, VAHU have positive and not significant effect on firm value. Capital structure (DAR have positive and significant effect on firm value. Managerial ownership (MGRL have negative and significant effect on firm value.

Foreign portfolio capital flows and stock returns: a study of Brazilian listed firms

Directory of Open Access Journals (Sweden)

Tiago Rodrigues Loncan

2015-12-01

Full Text Available Abstract This study analyzed the effect of foreign portfolio capital flows on stock returns of Brazilian listed firms through a 6-factors APT model, in which an additional risk factor for foreign portfolio capital flows was included. First, an aggregate analysis was conducted. The partial effect of foreign portfolio capital flows on the IBOVESPA index’s returns was statistically significant and positive. Next, a disaggregate analysis was also implemented, in which portfolios of stocks were sorted by sector of economic activity, level of risk and level of corporate governance. Foreign portfolio capitals caused increases in returns especially for sectors related to commodities, industry and cyclical consumption. For the portfolios sorted by risk (in which the stocks’ betas were used as a risk parameter for sorting, foreign capitals increased the returns of mid-high and high beta portfolios, but decreased the returns of low and low-mid beta portfolios. For corporate governance portfolios, the firms listed on the Novo Mercado segment (according to BMF&Bovespa criteria experienced a statistically significant revaluation effect. Overall, the results of the study provide support to the revaluation effect hypothesis.

The Spirit of Capitalism and Stock-Market Prices

OpenAIRE

Gurdip S. Bakshi; Zhiwu Chen

1996-01-01

In existing theory, wealth is no more valuable than its implied consumption rewards. In reality, investors acquire wealth not just for its implied consumption but for the resulting social status. Max M. Weber (1958) refers to this desire for wealth as the spirit of capitalism. The authors examine, both analytically and empirically, implications of Weber's hypothesis for consumption, savings, and stock prices. When investors care about relative social status, propensity to consume and risk-tak...

The Impact of Capital Structure on Stock Returns: International Evidence

Directory of Open Access Journals (Sweden)

Reza TAHMOORESPOUR

2015-03-01

Full Text Available This study examines the relationship between capital structure and stock returns of firms in the following eight countries in the Asia Pacific regionfor a period of 22 years from 1990 to 2012. The methodology is Panel Regression. The results indicate that the effect of capital structure depends on the nature of industry as well as market. In Australia, China, and Korea, return of companies in the Basic Material industry have negative relationship with debt to common equity. Long term debt to common equity positively affects the return of firms in Australia and Korea in the Basic Material industry.

Renewable Resources, Capital Accumulation, and Economic Growth

Directory of Open Access Journals (Sweden)

Wei-Bin Zhang

2011-01-01

Full Text Available This paper proposes a dynamic economic model with physical capital and renewable resources. Different from most of the neoclassical growth models with renewable resources which are based on microeconomic foundation and neglect physical capital accumulation, this study proposes a growth model with dynamics of renewable resources and physical capital accumulation. The model is a synthesis of the neoclassical growth theory and the traditional dynamic models of renewable resources with an alternative approach to household behavior. The model describes a dynamic interdependence among physical accumulation, resource change, and division of labor under perfect competition. Because of its refined economic structure, our study enables some interactions among economic variables which are not found in the existing literature on economic growth with renewable resources. We simulate the model to demonstrate the existence of equilibrium points and motion of the dynamic system. Our comparative dynamic analysis shows, for instance, that a rise in the propensity to consume the renewable resource increases the interest rate and reduces the national and production sector’s capital stocks, wage rate and level of the consumption good. Moreover, it initially reduces and then increases the capital stocks of the resource sector and the consumption and price of the renewable resource. The stock of the renewable resource is initially increased and then reduced. Finally, labor is redistributed from the production to the resource sector.

The mediating effect of financial performance on the relationship between intellectual capital & market share: Evidence from Tehran stock exchange

Directory of Open Access Journals (Sweden)

Seyed Mohamad Fahimi

2017-11-01

Full Text Available Intellectual capital has an important role in this knowledge based economy era. The purpose of this study is to examine the mediating effect of financial performance on the relationship between intellectual capital and market share in the listed Companies in the Tehran Stock Exchange in this study to assess the intellectual capital, the rate of value-added intellectual capital that developed by Pulic (1998 is used. The sample included 99 companies listed in the Tehran Stock Exchange, for a period of five years from 2011 to 2015. The research findings show a significant positive relationship between intellectual capital and market share. Also the results show that there is no mediating effect of financial performance in the relationship between intellectual capital and market share

CAPITAL ASSET PRICING MODEL METHOD USED IN MEASURING AND ANALYZING COMPANIES LISTED IN PEFINDO25 AT INDONESIA STOCK EXCHANGE PERIOD 2015

Directory of Open Access Journals (Sweden)

Francis M HUTABARAT

2016-08-01

Full Text Available The industry in Indonesia is an interesting business to capitalize. In Indonesia many companies were established since it is profitable. The capital market serves as an economic pillar in most countries. Indonesia is a rich country, rich in many ways especially in natural resources. However, the industry has its ups and downs in the stock market. It is interesting to see the performance of the companies listed in the Indonesia Stock Exchange.  This study aimed to measure and analyze companies listed in Pefindo25 at Indonesian Stock Exchange using Capital Asset Pricing Model. The sample used is 25 companies listed at Pefindo25 index. Based on the results of the study, it can conclude that after analyzing the companies listed in the Indonesian Stock Exchange using Capital Asset Pricing Model that based on Beta analysis, the companies have the type of stocks that are aggressive and defensive. With positive and negative return. The company with aggressive beta shows that the company tend to face higher risk, as JPFA find itself with positif return 15.47% expected return. And companies with defensive type of stocks tend to have positive return such as: FISH, STTP, AISA, APLN, and others since they are not sensitive to market changes. It is recommended for further research to look on this CAPM method in analyzing the stock investment.

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

Directory of Open Access Journals (Sweden)

Ya-Fang Cheng

2018-06-01

Full Text Available This article reviews the relation between social capital and stock market participation via new technology. Its purpose is to acquire a thorough understanding of the structural, relational, and cognitive aspects of social capital’s influences and to recommend further empirical research ideas to the existing body of knowledge on household finance. It discusses the consideration of modern and highly technological platforms such as the internet stock market exchange platforms and applications. The stock market participation puzzle remains unsolved despite the progress in explaining the economic rationality behind investors decision making through behavioral finance. Furthermore, the researchers develop four propositions which can expound the existing relationship between social capital dimensions such as the structural, relational, and cognitive aspects and stock market participation of households. Doing so, we discuss the roles of risk attitude and the influence of cognitive ability such as financial awareness, financial literacy, and IQ (intelligence quotient to enhance the existing body of knowledge. Practically, this article adds valuable ideas in solving the issue of limited participation not just in the stock market but in other financial markets through reflecting on the sociological and (green technological concepts. Lastly, the implications for sustainable financial markets are elaborated.

Access to finance for innovation: the role of venture capital and the stock market

NARCIS (Netherlands)

Bogliacino, F.; Lucchese, M.

2011-01-01

Financial constraints for young and small firms can prevent them from contributing to innovation and the creation of new jobs. The paper analyzes two of the several institutional mechanisms implemented to overcome that hurdle: the development of the venture capital market and access to the stock

Analysis on the Influence of Stock Index Futures on Chinese Stock Market

Institute of Scientific and Technical Information of China (English)

王钊

2014-01-01

As the first product of financial futures in China, CSI 300 Stock Index Futures is a symbol of the continual improvement and development of Chinese capital market system. So it would be bound to generate immeasurable influence on Chinese capital market and financial system. Starting from introducing the relevant summaries of stock index futures, this paper analyzes the influence of the stock index futures on the fluctuation in the international stock market;then, it analyzes influence of the stock index futures on the fluctuation in Chinese stock market, in order to propose some suggestions to the policies for developing Chinese stock index futures.

The Impact of Capital Gains Taxes on Stock Price Reactions to S&P 500 Inclusion

OpenAIRE

Jennifer L. Blouin; Jana Smith Raedy; Douglas A. Shackelford

2000-01-01

This paper contributes to our understanding of the determinants of price responses to inclusion in the S&P 500 by providing evidence consistent with capital gains tax planning impacting stock reactions. Tests are conducted on 426 additions from 1978-1999. We regress the returns on the first trading day following announcement on a capital gains tax measure and controls. The evidence is consistent with the share prices of appreciated firms being temporarily bid up to compensate individual share...

CAPITAL STRUCTURE, COST OF DEBT AND DIVIDEND PAYOUT OF FIRMS IN NEW YORK AND SHANGHAI STOCK EXCHANGES

Directory of Open Access Journals (Sweden)

Jun Jiang

2013-01-01

Full Text Available The Study collects panel data of listed firms in New York Stock and Shanghai Stock Exchanges during 1992 to 2008. The data are used to perform panel regression estimates for firms in each stock market. The main purpose is to compare the decision on dividend payout of listed firms in the two stock markets. The results from fixed effect estimates show that factors that can explain dividend payout of firms in New York Stock Exchange poorly explain dividend payout of firms in Shanghai Stock Exchange. This paper adds to the literature in that it provides an evidence of difference in dividend policy of firms between advanced and emerging stock markets. For policymakers in the Chinese economy, implementation of measures to enhance the advancement of bond market is necessary. Additionally, firms in Shanghai Stock Exchange should adjust their capital structure to provide room for investors to diversify and adjust their portfolios of stocks and bonds.

The Relationship Between Intellectual Capital and Firm Value: A Study in Istanbul Stock Exchange

Directory of Open Access Journals (Sweden)

Selim CENGİZ

2013-06-01

Full Text Available The main purpose of this study is to investigate the relationship between intellectual capital and firm value. The study is significant in that it makes intellectual capital, which is of vital importance in ensuring firms’ sustainability, more apparent and it provides a chance to make comparisons with other studies. The companies operating in energy sector in Borsa Istanbul (abbreviated as BIST, former Istanbul Stock Exchange during the period of 2009-2011, are taken into the scope of analysis. Within this scope, the findings obtained by using “Calculated Intangible Value Management” are compared with firms’ market value/book value practices in order to determine the relationship between intellectual capital and firm value. The findings reveal that energy companies operating in Turkey do not consider their intellectual capital assets important and tangible assets are the main factors affecting business performance.

The Influence of Stock Exchange Transactions on the Volume of Capital Investments in Real Sectors of the Ukrainian Economy

Directory of Open Access Journals (Sweden)

Strielnikov Roman M.

2017-09-01

Full Text Available It is determined that insufficient attention is paid to the issues of influence of cash flows that are formed in the national stock market on the size of capital investments in real sectors of the national economy. Therefore this direction of scientific and practical research is topical. It is proved that the purchase of securities that the buyer intends to resell within three months cannot be classified as an investment, and the buyer — as an investor. It is found that during the last ten years the main source of financing of capital investments was the position “Own funds of enterprises and institutions”. When considering exchange securities contracts at stock markets there singled out financial instruments that can influence the size of capital investments in real sectors of the economy, namely, shares and bonds of enterprises. The conducted correlation analysis showed that there is a strong correlation between exchange contracts with original issue shares and the volumes of capital investments in real sectors of the economy, which indicates that the capitalization of the assets of issuers of shares contributes to increasing the opportunities for capital investments in the whole country.

The Determinant Factors Of Sectoral Stock Return In Bullish And Bearish Condition At Indonesian Capital Market

Directory of Open Access Journals (Sweden)

Defrizal

2015-07-01

Full Text Available Abstract this study aims to explain determinant factors of sectoral stock return in bullish and bearish condition at Indonesian capital market. This study used a multi-factor asset pricing model with sectoral stock return as the dependent variable and stock market return interest rates and exchange rate as independent variables. The Identification of stock market condition by using a Markov Switching Models which are also used as the basis for segmenting the data into bullish and bearish conditions. Estimates of the model used the robust least square method. This study used data from Indonesian Stock Exchange to the observation period from January 1996 to December 2013. The results of this study were 1 simultaneously stock market return interest rates and exchange rate affected the sectoral stock return in bullish and bearish condition. 2 Partially the stock market return positively effect and is as a main factor in determining the sectoral stock return in all industries in either bullish condition or bearish condition while the effect of the interest rates and exchange rate do not consistently affect the sectoral stock return in different industries and market conditions.

PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA KEUANGAN PERUSAHAAN

Directory of Open Access Journals (Sweden)

Denny Andriana

2014-04-01

Full Text Available The purpose of this research is to examine the influence of intellectual capital and its components, represented by physical capital (capital employed, human capital, and structural capital,on financial performance of mining and manufacturing companies listed in Indonesia Stock Exchange (Bursa Efek Indonesia – BEI period of 2010 – 2012. Total population observed during this research shows 169 mining and manufacturing companies.The sample was determined by purposive sampling method and found a total of 70 samples as the research subjects. The analytical technique for the quantitaive data uses a statistical tool, i.e. multiple regression. Intellectual capital and its components were measured by Pulic Model, while financial performance uses Return on Equty (ROE ratio. The results show that intellectual capital and human capital have negative influence, yet insignificant, impacton companies financial performance. While physical capital (capital employed and structural capital do have positive influence but not significanton companies financial performance.

Capital Market Research in Accounting: Evidence from The Tehran Stock Exchange

OpenAIRE

Mohammad Namazi; Amin Nazemi; Mohamat Sabri Hassan

2009-01-01

The major purpose of this study is to classify and analyse capital market research conducted in the Tehran Stock Exchange Market (TSEM). Similar to Namazi and Nazemi’s (2005) review of Finance Studies on the TSEM in 1991–2003, we review, classify and analyse the significant Accounting Studies related to the TSEM. Consequently, by both employing content analysis and archival methodology and considering academic accounting courses and programs established by the Ministry of Science, Researc...

Daily stock index return for the Canadian, UK, and US equity markets, compiled by Morgan Stanley Capital International, obtained from Datastream.

Science.gov (United States)

Li, Leon

2018-02-01

The data presented in this article are related to the research article entitled "Testing and comparing the performance of dynamic variance and correlation models in value-at-risk estimation. North American Journal of Economics and Finance, 40, 116-135. doi:10.1016/j.najef.2017.02.006 (Li, 2017) [1]. Data on daily stock index return for the Canadian, UK, and US equity markets, as compiled by Morgan Stanley Capital International, are provided in this paper. The country indices comprise at least 80% of the stock market capitalization of each country. The data cover the period from January 1, 1990, through September 8, 2016, and include 6963 observations. All stock prices are stated in dollars.

Daily stock index return for the Canadian, UK, and US equity markets, compiled by Morgan Stanley Capital International, obtained from Datastream

Directory of Open Access Journals (Sweden)

Leon Li

2018-02-01

Full Text Available The data presented in this article are related to the research article entitled “Testing and comparing the performance of dynamic variance and correlation models in value-at-risk estimation. North American Journal of Economics and Finance, 40, 116–135. doi:10.1016/j.najef.2017.02.006 (Li, 2017 [1]. Data on daily stock index return for the Canadian, UK, and US equity markets, as compiled by Morgan Stanley Capital International, are provided in this paper. The country indices comprise at least 80% of the stock market capitalization of each country. The data cover the period from January 1, 1990, through September 8, 2016, and include 6963 observations. All stock prices are stated in dollars.

THE MARKET VALUE OF HUMAN CAPITAL: AN EMPIRICAL ANALYSIS

Directory of Open Access Journals (Sweden)

NEAGU OLIMPIA

2012-12-01

Full Text Available There is a general consensus that human capital is a major determinant of economic growth. Reflections on how human capital is related to growth can be extended by viewing on the market value of the human capital. The concept of the market value of human capital reflects the efficiency of allocation and utilisation of the human capital in the economy. To measure this efficiency the concept of the market value of human capital is explained and developed in the present paper. The aim of the paper is to introduce the concept of market value of human capital and the specific objectives are targeted to define his content, to propose a method for estimating it and to provide calculations of it for OECD countries. The concept of human capital is complex and multifaceted one, consisting of: native human capital (biological, educational capital, health capital and social skills (Neagu, 2010. Clearly, human capital is intangible, a stock that is not directly observable as physical capital. Therefore, the estimation of human capital must be constructed indirectly. The stock of human capital in economy creates economic value, expressed through the economic output per capita. In order to estimate this economic value we have to find an appropriate proxy for the human capital stock producing that value. In the purpose of our paper, we consider that the economic value of human capital can be estimated by calculating the aggregate value created by the active human capital in the economy. In this view, GDP per person employed is a relevant estimation of value created by the employed labour force. The aggregate value is created by the employed persons with different educational level. The market value of human capital is calculated by dividing the GDP per person employed to the human capital stocks active in the economy. The human capital stock depends on educational costs ( on primary, seconadry, tertiary education as a the share of GDP per capita weighted by the

Intermarket Technical Research of the U.S. Capital Markets and the Czech Stock Market Performance

Directory of Open Access Journals (Sweden)

Jana Vychytilová

2014-01-01

Full Text Available Globalization of the capital markets increasingly leads the investors to understand the fundamentals and technicals of asset cross-correlations and the global asset allocation seems to be an important task. The paper measures product momentum correlations between the four leading global benchmarks Standard & Poor’s stock index, Thomson Reuters/Jefferies CRB index, 30-Year U.S. Treasury Bond Price index and Dollar Index and between these indices and the Czech stock PX index. Empirical results illustrate that statistically significant correlations between U.S. indices existed over some past period at the 95.0% confidence level. In addition, the significant relation between indices Standard & Poor’s stock index, Thomson Reuters/Jefferies CRB index and the Czech stock market PX during the past fifteen years has been detected. These conclusions were reached from an analysis of monthly data in the United States and the Czech Republic, from January 1999 to April 2014. The empirical results offer beneficial applications not only for investors to diversify their risk but also for policy-makers to allocate resources more efficiently.

corporate governance and capital structure in Brazil: stock, bonds and substitution / Governança corporativa e estrutura de capital no Brasil: ações, dívidas e substituição

Directory of Open Access Journals (Sweden)

Alexandre Ripamonti

2016-10-01

Full Text Available Purpose: To study the Brazilian bond and stock markets for testing the stock market development theory of Demirgüc-Kunt and Maksimovic (1996. Originality/gap/relevance/implications: This paper tests the substitution hypothesis of stock market development, from debt to stocks, in a context of improved corporate governance, by analyzing the data with cointegration techniques. The findings show that the rejection of substitution hypothesis, as the bond market has a positive and significant association with stock market improvements. The findings also show that improving the quality of corporate governance could lead equity capital and borrower capital sources to be complementary and not substitutes, suggesting that Brazilian stock market reform has created a virtuous development cycle. Key methodological aspects: Positivist research using quantitative methodology. Data from a sample of 171 firms during 20 years, analyzed with cointegration. The null was a negative association between bond and stock markets. Summary of key results: Null rejection, non-consistent to theoretical framework. The results have shown a positive and significant association between stock and debt in an improved corporate governance context. Key considerations/conclusions: Improving the quality of corporate governance could lead equity capital and borrower capital sources to be complementary, and not substitutes, suggesting that Brazilian stock market reform has created a virtuous development cycle. Objetivo: Examinar os mercados de ações e de dívidas no Brasil, através do teste da teoria de desenvolvimento do mercado de ações de Demirgüc-Kunt & Maksimovic (1996. Originalidade/Lacuna/Relevância/Implicações: Teste da hipótese de substituição do mercado de dívidas pelo de ações no Brasil, com melhor governança corporativa e cointegração. Os resultados indicam a rejeição da hipótese de substituição, com associação positiva entre ações e dívidas em

Capital Liberalization and Imperfect Substitutability between Bonds and Stocks: Reexamination of the Mundell-Fleming Model

Directory of Open Access Journals (Sweden)

Tae-Joon Kim

2002-06-01

Full Text Available This paper analyzes the effects of macroeconomic policies and foreign shocks on the stability of a small open economy, in which equity investment is more crucial than debt investment. The key assumption of our model is that stocks and bonds are imperfect substitutes. Accordingly, financial market equilibrium in our model is achieved only when both money and stock markets are simultaneously in equilibrium. In contrast to the Mundell-Fleming model, fiscal policy is relatively effective under the flexible exchange rate regime, while monetary policy is relatively effective under the fixed exchange rate regime. In the case of foreign shocks such as hike of world interest rates, the flexible exchange rate regime appears more effective in stabilizing the economy because the flexible exchange rate functions as a shock absorber. The empirical evidence from the Korean economy during 1998:4- 2000:11 supports these findings. After the 1997 currency crisis, the Korean monetary authorities adopted the independently floating exchange regime and fully liberalized the capital account. Using a vector autoregressive model consisting of money stock, interest rate, balance of payments and exchange rate, we analyze the effect of an expansionary monetary policy. An increase in money supply decreases the domestic interest rates but the balance of payments turns into surplus. This result confirms that the higher rates of return on equity results in net capital inflows, in spite of lower domestic interest rates, and thus appreciates the domestic currency.

"Capitalizing on Sport": Sport, Physical Education and Multiple Capitals in Scottish Independent Schools

Science.gov (United States)

Horne, John; Lingard, Bob; Weiner, Gaby; Forbes, Joan

2011-01-01

This paper draws on a research study into the existence and use of different forms of capital--including social, cultural and physical capital--in three independent schools in Scotland. We were interested in understanding how these forms of capital work to produce and reproduce "advantage" and "privilege". Analysis is framed by…

Towards Integrating Soil Quality Monitoring Targets as Measures of Soil Natural Capital Stocks with the Provision of Ecosystem Services

Science.gov (United States)

Taylor, M. D.; Mackay, A. D.; Dominati, E.; Hill, R. B.

2012-04-01

with appropriate targets tied to ecosystem services and changes in critical soil function. Such indicators would be used for specific purposes for limited periods, rather than long-term, continuous monitoring. Some examples will be presented. An important step needed to successfully initiate and complete the review was assigning national oversight. Reigniting scientific interest (which had declined with the cessation of funding in 2003) and documentation of the process were other important steps. We had to extend the recently developed ecosystem service approach to accommodate the catchment scale. This required additional attributes in the framework and recognition that some of the proxies will change with scale as will the techniques to value the services. The framework was originally developed for use at the farm scale. Macroporosity, one of the two indicators used to monitor the physical condition of the soil, was used to illustrate how the ecosystem service framework could be used to link a change in the physical condition of the soil with the provision of services. The sum of the dollar values of selected soil ecosystem services were used to inform the state of soil natural capital stocks. This estimate provides a new insight into the value of the soil quality indicators and existing target ranges. Doing so will enable targets to be more closely aligned and integrated with the provision of a range of ecosystem services, going far beyond food production.

Statistics of extreme events in Chinese stock markets

International Nuclear Information System (INIS)

Wu Gan-Hua; Qiu Lu; Li Xin-Li; Yang Yue; Yang Hui-Jie; Jiang Yan; Stephen Mutua

2014-01-01

We investigate the impact of financial factors on daily volume recurrent time intervals in the developing Chinese stock markets. The tails of probability distribution functions (PDFs) of volume recurrent intervals behave as a power-law, and the scaling exponent decreases with the increase of stock lifetime, which are similar to those in the US stock markets, and they are typical representatives of developed markets. The difference is that the power-law exponent values remain almost the same with the changes of market capitalization, mean volume, and mean trading value, respectively. These findings enrich the results for event statistics for financial markets. (interdisciplinary physics and related areas of science and technology)

Market Performance and Accounting Information as the Reference of Stocks Portfolio Formation in Indonesia Stock Exchange

OpenAIRE

Pasaribu, Rowland Bismark Fernando

2009-01-01

This study aimed to a stock portfolio formed with composite of companies market (PER, PBV, ROE, EPS, PSR, and B/M, VaR) and accounting performance (ROE, and EPS) also their market capitalization in Indonesia Stock Exchange period 2003-2006. Some clarification need to achieved, such as: real difference among variabel refer to their market capitalization and influence of predictor to stock return. Hereinafter, the performance of selected portfolio were evaluated. The evaluation result conclude ...

Capital Asset Pricing Model Testing at Warsaw Stock Exchange: Are Family Businesses the Remedy for Economic Recessions?

Directory of Open Access Journals (Sweden)

Jacek Lipiec

2014-07-01

Full Text Available In this article, we test the capital asset pricing model (CAPM on the Warsaw Stock Exchange (WSE by measuring the performance of two portfolios composed of construction firms: family-controlled and nonfamily controlled. These portfolios were selected from the WIG-Construction (WIG—Warszawski Indeks Giełdowy—Warsaw Stock Exchange Index. The performance of both portfolios was measured in the period from 2006 to 2012 with respect to three sub-periods: (1 pre-crisis period: 2006–2007; (2 crisis period: 2008–2009; and (3 post-crisis period: 2010–2012. This division was constructed in this way to find out how family firms performed in crisis times in relation to nonfamily firms. In addition, the construction portfolio was chosen due to its sensitivity to recessions. When an economy faces a downturn, construction firms are among the first to be exposed to risk. The performance was measured by using the capital asset pricing model with statistical inference. We find that public family firms significantly outperformed non-family peers in the crisis times.

Global stock market in 1990-s

Directory of Open Access Journals (Sweden)

Moshenskyi S.Z.

2017-08-01

Full Text Available The 1990s became a period of long-term recovery, the main driving force of which was the high-tech companies of the so-called «new economy», mainly associated with information technology and Internet at the global stock market. Such innovations have led to unrealistic expectations of the profitability of new companies from the sale of goods and services on the Internet. This became a prerequisite for a speculative boom in equity markets in developed financial systems. The boom intensified the mass privatization of state-owned enterprises in UK, Germany, France and some other countries. The capitalization of the global stock market increased more than ten times although the world GDP grew only 2.5 times during two decades, from 1980 to 2000. Though the stock market is the source of capital only in the countries with the Anglo-American model of financial markets (for countries of continental Europe and Japan such sources are bank loans, stock markets increased in all countries with developed financial systems. The systematic analysis of such key indicators as market capitalization and liquidity is required for an objective assessment of such rise in stock markets. But statistical information at stock markets is often not systematized and fragmentary. Therefore, the author (based on the official statistics of such international financial organizations as the Organization for Economic Co-operation and Development and the World Federation of Exchanges has calculated and systematically analyzed capitalization and liquidity as the main indicators of the stock market for the largest countries with developed financial systems (USA, Great Britain, Germany, France, Japan. The paper displays the differences in the mechanisms of attraction of capital determined by the different models of financial markets (decentralized Anglo-American and centralized European as well as the features of the composition of the main investors in the world stock markets.

THE ANALYSIS OF CAPITAL MARKET INTEGRATION IN ASEAN REGION BY USING THE OGARCH APPROACH

Directory of Open Access Journals (Sweden)

Robiyanto Robiyanto

2017-04-01

Full Text Available Capital market integration is a topic that attracts a lot of research interests in regional and international capital markets. Unfortunately, the various studies that have been done tend to use analytical tools that have not been able to conclude the degree of capital market integration quantitatively, hence a study that is able to measure the degree of capital market integration quantitatively is required. This study investigated the capital markets integration in ASEAN by using the Orthogonal Generalized Autoregressive Conditional Heteroscedasticity (OGARCH method which could provide the degree of integration quantitatively. Capital markets studied were Indonesia Stock Exchange, Kuala Lumpur Stock Exchange, Thailand Stock Exchange, Singapore Stock Exchange and Philippines Stock Exchange during period of January 2001 – December 2016. The result of this study was there was a co-movement among ASEAN capital markets studied, but not all these ASEAN capital markets were fully integrated. This study also found that Indonesia Stock Exchange, Kuala Lumpur Stock Exchange, Stock Exchange Thailand, and Singapore Stock Exchange were integrated but Philippines Stock Exchange was not. The Philippines Stock Exchange tended to be segmented rather than integrated.

Can solar energy substitute for oil? A natural capital accounting approach

International Nuclear Information System (INIS)

Slesser, M.

1993-01-01

Humans have managed to exploit the Earth's natural capital to create a vast human-made physical capital stock, whereby we provide food, fuel, clothing and shelter for the great majority of the planet's inhabitants. In doing so, we have damaged the environment and dissipated much that we inherited. Since the stock of natural capital is finite, for how long can this depletion and erosion continue? With what do we replace it in order to maintain our economic systems? This paper explores in a quantitative manner the potential to substitute solar energy for natural capital. In order to proceed, we need to distinguish between different types of natural capital, understand the nature of human-made capital and see what it is that determines the viability of solar energy systems. A macroeconomic model, GlobEcco, has been used to assess the potential for economic development at the global level in the context of the consequent rate of depletion of the Earth's depletable natural capital and/or its substitution by solar energy. Nine policies for the introduction of solar electricity, as derived from hydro-power, wind energy and photovoltaics, have been tested. (7 figures, 3 tables). (Author)

Return on Capital and Cost of Capital: How does their Relation Affect Firm Value?

OpenAIRE

Halil D. Kaya; Julia S. Kwok; Elizabeth C. Rabe

2015-01-01

The Great Recession of 2008-2009 hurt almost all of the companies’ stock values in the United States. Interestingly, for Starbucks, the deterioration started a few years before the recession. From 2005 to 2007, the company’s stock price declined by approximately 40%. This case encourages students to examine the company’s return on capital, compare it to its cost of capital, and then relate this to the decline in the company’s stock price. First, they will establish a single formula for return...

Social capital and physical activity among Croatian high school students.

Science.gov (United States)

Novak, D; Doubova, S V; Kawachi, I

2016-06-01

To examine factors associated with regular physical activity in Croatian adolescents. A cross-sectional survey among high school students was carried out in the 2013/14 school year. A survey was conducted among 33 high schools in Zagreb City, Croatia. Participants were students aged 17-18 years. The dependent variables were regular moderate to vigorous physical activity (MVPA) and overall physical activity measured by the short version of International Physical Activity Questionnaire and defined as 60 min or more of daily physical activity. The independent variables included family, neighborhood, and high school social capital. Other study covariates included: socio-economic status, self-rated health, psychological distress and nutritional status. The associations between physical activity and social capital variables were assessed separately for boys and girls through multiple logistic regression and inverse probability weighting in order to correct for missing data bias. A total of 1689 boys and 1739 girls responded to the survey. A higher percentage of boys reported performing regular vigorous and moderate physical activity (59.4%) and overall physical activity (83.4%), comparing with the girls (35.4% and 70%, respectively). For boys, high family social capital and high informal social control were associated with increased odds of regular MVPA (1.49, 95%CI: 1.18 - 1.90 and 1.26, 95%CI: 1.02 - 1.56, respectively), compared to those with low social capital. For girls, high informal social control was associated with regular overall physical activity (OR 1.38, 95% CI: 1.09 - 1.76). High social capital is associated with regular MVPA in boys and regular overall activity in girls. Intervention and policies that leverage community social capital might serve as an avenue for promotion of physical activity in youth. Copyright © 2016 The Royal Society for Public Health. Published by Elsevier Ltd. All rights reserved.

Growth with Endogenous Capital, Knowledge, and Renewable Resources

Directory of Open Access Journals (Sweden)

Wei-Bin Zhang

2017-03-01

Full Text Available This paper proposes a dynamic economic model with endogenous technological change, physical capital and renewable resources. The model is a synthesis of the neoclassical growth theory, Arrow’s learning by doing, and some traditional dynamic models of renewable resources with an alternative approach to household behavior. The model describes a dynamic interdependence between technological change, physical accumulation, resource change, and division of labor under perfect competition. Because of its refined economic structure, the model analyzes some interactions between economic variables which are not found in the existing literature of economic growth. We simulate the model to demonstrate existence of equilibrium points and motion of the dynamic system. Our comparative dynamic analysis shows, for instance, that a rise in the capacity of the renewable resource increases the stock and reduces the price of the resource of the resource over time; the output levels of the two sectors, the total capital stock, and capital inputs of the two sectors are all increased; the labor distribution between the two sectors is slightly affected initially but is not affected in the long term; the rate of interest rises initially rise and is almost not affected in the long term; the per capita consumption levels of the good and the resource and the wage rate are increased.

The Stock Concept Applicability for the Economic Evaluation of Marine Ecosystem Exploitation

DEFF Research Database (Denmark)

Ravn-Jonsen, Lars

Stock models, in which production is interpreted as if it were the population growth of a stock, have been the preferred tool for fishery economics since Clark and Munro (1975) introduced capital theory in these models. Ravn-Jonsen (2009) applied capital theory to a model in which the production ...... of a stock. The concept of a stock is rather an illusion, as is the concept of an optimal stock level. It is essential to liberate fishery economics from a simplified view of population and communities.......Stock models, in which production is interpreted as if it were the population growth of a stock, have been the preferred tool for fishery economics since Clark and Munro (1975) introduced capital theory in these models. Ravn-Jonsen (2009) applied capital theory to a model in which the production...

Relations between the school physical environment and school social capital with student physical activity levels.

Science.gov (United States)

Button, Brenton; Trites, Stephen; Janssen, Ian

2013-12-17

The physical and social environments at schools are related to students' moderate-to-vigorous physical activity (MVPA) levels. The purpose of this study was to explore the interactive effects of the school physical environment and school social capital on the MVPA of students while at school. Data from 18,875 grade 6-10 students from 331 schools who participated in the 2009/10 Canadian Health Behaviour in School-Aged Children survey were analyzed using multi-level regression. Students answered questions on the amount of time they spend in MVPA at school and on their school's social capital. Administrator reports were used to create a physical activity related physical environment score. The school physical environment score was positively associated with student MVPA at school (β = 0.040, p < .005). The association between the school social capital and MVPA was also positive (β = 0.074, p < .001). The difference in physical environments equated to about 20 minutes/week of MVPA for students attending schools with the lowest number of physical environment features and about 40 minutes/week for students attending schools with the lowest school social capital scores by comparison to students attending schools with the highest scores. The findings suggest that school social capital may be a more important factor in increasing students MVPA than the school physical environment. The results of this study may help inform interventions aimed at increasing student physical activity levels.

Long Memory in the Greek Stock Market

OpenAIRE

John T. Barkoulas; Christopher F. Baum; Nickolaos Travlos

1996-01-01

We test for stochastic long memory in the Greek stock market, an emerging capital market. The fractional differencing parameter is estimated using the spectral regression method. Contrary to findings for major capital markets, significant and robust evidence of positive long-term persistence is found in the Greek stock market. As compared to benchmark linear models, the estimated fractional models provide improved out-of-sample forecasting accuracy for the Greek stock returns series over long...

Human Capital and Economic Growth - How Strong is the Nexus?

Directory of Open Access Journals (Sweden)

Marinko Škare

2016-08-01

Full Text Available The link between human capital and economic growth still remains unexplained because of the measurement issues connected to the human capital stock. This study investigates the link between human capital stock and economic growth using inclusive wealth index and ratio of engaged to actively disengaged employees as proxy for human capital stock. Data from the global workplace and inclusive wealth reports are used in order to provide an international comparison of the link between human capital and inclusive wealth. Cross country comparison show human capital largerly contribute to the inclusive wealth formation. Formal education is important but also motivating working environment is needed to achieve sustainable economic growth. The finding further indicates that standard human capital growth model should be revised taking into the account variables addressing sustainable growth (not just growth and environmental variables (work conditions affecting human capital stock. Countries encouraging investments in the development of individuals both through formal education and inspiring work environments achieve higher sustainable economic growth

Valuation of common and preferred stocks

Directory of Open Access Journals (Sweden)

Nikolić Ljubica

2014-01-01

Full Text Available Buying stocks is a modern way of investing. The investors may place the available capital on the domestic and foreign stock market, they may buy more stocks of a single issuer or distribute money to purchase stocks of various public (stock-exchange companies, and they may form a portfolio of various securities. The investors' decisions on these options are based on their estimate on returns and risks underlying individual security instruments (securities. The two basic approaches to valuation of common stocks are: the Present Value Approach (method of valuating the capitalization of income and the P/E Ratio Approach (the method of valuating the multiple of per-share earnings. Instead of viewing these methods as competing alternatives, they should better be viewed as mutually complementary methods. Both methods are equally useful and their concurrent use may provide better grounds for the analysts' valuation of stocks.

The Difference Between Stock Splits and Stock Dividends - Evidence from Denmark

DEFF Research Database (Denmark)

Raaballe, Johannes; Bechmann, Ken L.

2007-01-01

splits is closely related to changes in a firm's payout policy, but that the relationship differs for the two types of events. A stock dividend implies an increase in nominal share capital and hence a decrease in retained earnings. Firms announcing stock dividends finance growth entirely by debt...

THERE IS INFLUENCE IN DEVELOPMENT OF COMPANIES WHICH BUILT STOCK, WITH SUPPORT OF INVESTIMENT FUND PRIVATE EQUITY AND VENTURE CAPITAL? EVIDENCES OF ENTRANT COMPANIES AT BOVESPA

Directory of Open Access Journals (Sweden)

Caciano Gianechini

2013-09-01

Full Text Available This work seeks to identify the impact of the participation of Private Equity funds and Venture Capital (PE/VC, the performance of companies that owned the contribution prior to the opening of capital (IPO. In a more objective the present study seeks to investigate whether companies that opened capital, financed by PE/VC, have performed better than the other formerly the Brazilian stock market debut. The sample of work consists of 116 companies that made the initial public offering (IPO in the São Paulo Stock Exchange (BOVESPA in the period January 2004 to December 2009. First identified that 41 enterprises debuted at BOVESPA being financed by PE/VC funds. Furthermore, the results indicate that the influence of PE/VC funds tend to improve some indices of profitability and market of companies after the IPO. In summary, the evidence found lead to the conclusion that the organizations of private equity and venture capital influence positively the performance of investee companies.

Analysis of the Main Indicators of the Bucharest Stock Exchange

OpenAIRE

Madalina Gabriela ANGHEL

2014-01-01

The goal of this article is to achieve an analysis of the evolution and significance of the main indicators of the Bucharest Stock Exchange (stock exchange capitalization, BET index, value of the concluded transactions) over the last fifteen years. One of the significant elements in analyzing the performances of the capital market consist of the stock exchange capitalization which an essential indicator for characterizing of this domain of activity, mainly if considering the fact that it is u...

Financial effect of quality management system on intellectual capital : an analysis application on firms that quoted to construction and public works sector in Istanbul stock exchange

OpenAIRE

Turgut, Osman; Gumus, Fatih Burak

2015-01-01

Today in the finance literature, structural capital is one of the three elements of intellectual capital and the Quality Management System is defined in the structural capital. In this study the impact levels of Quality Management System on the intellectual capital of the companies are analyzed. In this context, 10 companies which are quoted as date 09.14.2014 in the Istanbul Stock Exchange “construction & public works” sector are analyzed. As a result, the inference that investors of the com...

Age structure and capital dilution effects in neo-classical growth models.

Science.gov (United States)

Blanchet, D

1988-01-01

Economists often over estimate capital dilution effects when applying neoclassical growth models which use age structured population and depreciation of capital stock. This occurs because capital stock is improperly characterized. A standard model which assumes a constant depreciation of capital intimates that a population growth rate equal to a negative constant savings ratio is preferable to any higher growth rate. Growth rates which are lower than a negative constant savings ratio suggest an ever growing capital/labor ratio and an ever growing standard of living, even if people do not save. This is suggested because the natural reduction of the capital stock through depreciation is slower than the population decrease which is simply unrealistic. This model overlooks the fact that low or negative growth rates result in an ageing of the capital stock, and this ageing subsequently results in an increase of the overall rate of capital depreciation. In that overly simplistic model, depreciation was assumed independent of the age of the captial stock. Incorporating depreciation as a variable into a model allows a more symmetric treatment of capital. Using models with heterogenous capital, this article explores what occurs when more than 1 kind of capital good is involved in production and when these various captial goods have different lengths of life. Applying economic models, it also examines what occurs when the length of life of capital may vary. These variations correct the negative impact that population growth can have on per capital production and consumption.

Testing for regime-switching CAPM on Zagreb Stock Exchange

Directory of Open Access Journals (Sweden)

Tihana Škrinjarić

2014-12-01

Full Text Available The standard Capital Asset Pricing Model assumes that a linear relationship exists between the risk (beta and the expected excess return of a stock. However, empirical findings have shown over the years that this relationship varies over time. Stock markets undergo phases of greater and smaller volatility in which beta varies accordingly (undergoes different regimes. Given that the Croatian capital market is still insufficiently investigated, the aim of this paper is to explore the possibility of a non-linear relationship between the stock risk and return. Linear and Markov-switching models (Hamilton 1989 are examined on the Zagreb Stock Exchange based on monthly data on 21 stocks, ranging from January 2005 to December 2013. In that way, investors can use the results based on the best model when making decisions about buying stocks. Since this is one of the first papers on regime-switching on the Croatian capital market, it will hopefully contribute to the existing literature on investing.

12 CFR 931.8 - Other restrictions on the repurchase or redemption of Bank stock.

Science.gov (United States)

2010-01-01

... redemption of Bank stock. 931.8 Section 931.8 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL STANDARDS FEDERAL HOME LOAN BANK CAPITAL STOCK § 931.8 Other restrictions on the repurchase or redemption of Bank stock. (a) Capital impairment. A Bank may not redeem or...

EVALUATION OF THE MODERN TENDENCIES IN THE UKRAINIAN STOCK MARKET DEVELOPMENT

Directory of Open Access Journals (Sweden)

Oleksandr Trofimchuk

2015-11-01

Full Text Available The purpose of the article is to research and critically evaluate the features of functioning and development the stock market in Ukraine. The main point is to substantiate modern tendencies and to find ways of more efficient development of the Ukrainian stock market. Methodology. The research is based on the analysis of the important aspects which characterize stock market development. They are the volume of trading activity that was done on stock exchanges, level of market capitalization, economic concentration, price policy on market services, and control over the insider information use and manipulation identification. Results. On the basis of volume of trading activity that was done on stock exchanges, features of stock market structure are determined. Comparative analysis between the stock market capitalization level of Ukraine and average world index of stock market capitalization is done. The level and dynamic of economic concentration is defined. Features of competition between Ukrainian stock exchanges are analyzed. Great attention in research is paid to problems of control over the insider information use and principles of manipulation identification by stock exchanges. Value/originality. The research showed that main amount of trading operations was done in “shadow” stock market, capitalization level decreased and stock market in Ukraine does not meet international standards of transparency. Further research should be focused on problems of ensuring the effective implementation of the basic principles of competition between market participants. Main point is to provide law mechanisms to increase transparency level of the national stock market and to increase share of organized stock market in Ukraine.

EVOLUTION OF THE ROMANIAN CAPITAL MARKET IN THE LAST FOUR YEARS

Directory of Open Access Journals (Sweden)

SORIN CLAUDIU RADU

2012-10-01

Full Text Available The effects of the great recession have also been felt in Romania and the domestic capital market, component of the European financial market, has suffered from the negative evolutions of the world’s economy, fallowing the downward trend of the external markets since the crisis started. Considering the economic situation as of 2008, the Romanian capital market was faced with a small number of transactions, a decreased stock capitalization and low level of credibility, massive diminishment of liquidities, capital withdrawal on the financial market and significant depreciation of stock exchange indicators. This paper aims at presenting the evolution of the capital market in Romania for the last four years, pinpointing several strategic directions that are meant to support the domestic stock exchange and place them in the European stock exchanges top.

A study of the impacts of leverage on labor and capital productivity: A case study of companies listed in Tehran Stock Market

Directory of Open Access Journals (Sweden)

Peyman Akbari

2013-03-01

Full Text Available Productivity is a primary objective of increasing competition in modern economy and any increase in productivity level helps development of organization in the competitive market. The purpose of this paper is to investigate the relationship between operating leverage, financial leverage, compound leverage as independent variables and productivity indices including labor and capital productivities as dependent variables. The study includes 102 companies accepted in Tehran Stock Market based on screening, systematic deletion, over the period 2005-2010. The required data are gathered through official financial statements, committee reports, and other available documents in Tehran Stock Market. Stepwise regression and Pearson correlation are used to analyze the data. The results of the study have indicated that there were significant relationships between independent variables including leverage ratios with labor productivity. In addition, there is also a significance relationship between leverage ratios with capital productivity of total assets.

The synchronicity between the stock and the stock index via information in market

Science.gov (United States)

Gao, Hai-Ling; Li, Jiang-Cheng; Guo, Wei; Mei, Dong-Cheng

2018-02-01

The synchronicity between the stock and the stock-index in a market system is investigated. The results show that: (i) the synchronicity between the stock and the stock-index increases with the rising degree of market information capitalized into stock prices in certain range; (ii) the synchronicity decreases for large firm-specific information; (iii) the stock return synchronicity is small compared to the big noise trading, however the variance noise facilitates the synchronization within the tailored realms. These findings may be helpful in understanding the effect of market information on synchronicity, especially for the response of firm-specific information and noise trading to synchronicity.

Análisis del stock del capital humano para los grandes aglomerados de la Argentina

Directory of Open Access Journals (Sweden)

Gabriel Amós Fridrij

2008-02-01

Full Text Available El objetivo del presente trabajo es describir el cambio en el stock de capital humano, entre los años 1995 y 2006, medido por los niveles de educación formal alcanzados por la población económicamente activa (PEA, para los grandes aglomerados de Rosario, Tucumán, Mendoza, Córdoba y GBA de la República Argentina y también para Salta. Luego comparar el desempeño relativo de la provincia de Tucumán con las mismas. También se analizan los ingresos de los diferentes niveles de capital humano acumulado por año y por provincia. Además se realizará el planteo teórico de un modelo econométrico con el objeto de explicar cuales son los factores que determinan las diferencias en la performance de cada provincia. Por último se presentan las conclusiones que surgen del análisis.

ANALYSIS OF EFFECT OF PROFITABILITY, ASSETS STRUCTURE, SIZE OF COMPANIES, AND LIQUIDITY TO CAPITAL STRUCTURES IN MINING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2012 - 2015

Directory of Open Access Journals (Sweden)

Gatot Nazir Ahmad

2017-09-01

Full Text Available The purpose of this study is to analyze the effect of profitability, structure assets, firm size and liquidity to the capital structure of mining companies listed on the Indonesia Stock Exchange for the period 2012-2015. Sampling technique using purpose sampling. Data analysis technique used in this research is panel data regression. The results showed that partially profitability had negative and significant effect to capital structure, asset structure had positive and significant effect to capital structure, firm size had positive and significant effect to capital structure, and liquidity had negative and significant effect to capital structure. Simultaneously profitability, asset structure, firm size and liquidity have a significant effect on capital structure.

ASPECTS REGARDING THE DEVELOPMENT OF BUCHAREST STOCK EXCHANGE

Directory of Open Access Journals (Sweden)

Mirela MATEI

2008-12-01

Full Text Available Capital market in Romania is in a slow process of development, because the performances of the Bucharest Stock Exchange (BSE are ranking it among the last ones in Europe. The causes of slow development of capital market and remain behind compared to other Eastern European markets are numerous and consist of: late establishment of the two parts of the capital market û stock exchange and OTC market, modest use of capital market in the privatization process of state-owned companies; compromise of investment funds after scandals with SAFI and FNI; delay reform of the pension system, withdrawal from Bucharest Stock Exchange of major companies such as Dacia Pite║ti, Arctic Gπie║ti or Terapia Cluj Napoca, using bank credit as financing method of Romanian companies. Products lunched by BSE must satisfy the requirements of local and foreign investors who were already accustomed to derivatives launched by the Financial and Commodities Exchange from Sibiu. In addition, Bucharest Stock Exchange should use the experience of major European and American ones that run large financial processes of innovation and launched contracts on weather, volatility indices, price indexes for real estate, etc.

Are South East Asia Countries Capital Markets Characterized by Nonlinear Structures? An Investigation from Indonesia, Philippine and Singapore Capital Market Indices

OpenAIRE

Minarnita Yanti Verawati Bakara; Bambang Hermanto

2014-01-01

This research paper tries to detect the nonlinear structure in the South East Asia Countries Capital Markets. The capital markets of three South East Asia Countries are chosen: Indonesia, Philippine, and Singapore. Daily return data of Capital Markets composite indices are observed: Straits Times Index (STI) of Singapore Exchange from January 04, 1985 to December 31, 2007, Pilipino Stock Exchange Index (PSEi) of Philippines Stock Exchange from March 1, 1990 to December 31, 2007 and Jakarta Co...

Quarterly Aggregate Capital Input and the Cost of Capital for the

OpenAIRE

Subhash C. Sharma; Yijian He

1995-01-01

It is the flow of capital services, instead of the capital stock, along with the flows of other inputs which is related to the flows of outputs in economic theory of cost and production. In applied research, quite often to capture the dynamic phenomena which occurs within a year, there is a need to use quarterly data which may not be captured by annual data. However, quarterly data on capital input and the cost of capital are not readily available. Thus, in this paper the quarterly real and n...

ANALYSIS OF THE CAPITAL MARKET IN CROATIA

Directory of Open Access Journals (Sweden)

Maja Buljat

2015-12-01

Full Text Available The financial crisis that began in 2008 in the USA turned into a global economic crisis in a short time. As such, it had a big impact on the financial stability of Croatia, primarily on capital market. Capital market includes securities trading, primarily stocks and bonds, whose market value is influenced by the market capitalization of capital market and vice versa. Macro economically, market capitalization had an influence on the fall in the value of the entire capital market, and micro economically, it had an influence on the fall of the prices of stocks, bonds and other financial instruments of companies. The volume of trade decreased, but there was an increase in the number of transactions. In other words, people traded more and in smaller quantities. Therefore, the risk increased, and investors became more cautious.

DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIA

Directory of Open Access Journals (Sweden)

Rahajeng Cahyaning Putri Cipto

2011-09-01

Full Text Available Indonesia has been developing various sectors of its economy, and so it needs a huge amount of capital. Therefore, it has been putting a lot of efforts to develop its capital market. This paper analyzes the impacts of domestic and foreign factors on Indonesia stock price. Some considered domestic factors are interest rates, production index, and foreign exchange rates. Various considered foreign factors are Singapore and US stock prices. The paper uses Vector Error Correction Mechanism model to analyze the data. The estimation results suggest that all variables significantly influence Indonesia stock price, with Singapore stock price as the dominant factors.Keywords: Stock price, interest rates, exchange rates, production indexJEL classification numbers: G12, G15

Are South East Asia Countries Capital Markets Characterized by Nonlinear Structures? An Investigation from Indonesia, Philippine and Singapore Capital Market Indices

Directory of Open Access Journals (Sweden)

Minarnita Yanti Verawati Bakara

2014-11-01

Full Text Available This research paper tries to detect the nonlinear structure in the South East Asia Countries Capital Markets. The capital markets of three South East Asia Countries are chosen: Indonesia, Philippine, and Singapore. Daily return data of Capital Markets composite indices are observed: Straits Times Index (STI of Singapore Exchange from January 04, 1985 to December 31, 2007, Pilipino Stock Exchange Index (PSEi of Philippines Stock Exchange from March 1, 1990 to December 31, 2007 and Jakarta Composite Index (JCI of Indonesia Stock Exchange from January 05, 1988 to December 31, 2007.Should nonlinearity be found, the outcomes of each observation are compared to analyze the implications of each country in global, regional and local position of their competition in the continuously changing world of interdependency environment. The implications of nonlinearity finding in the three ASEAN countries capital markets to the current issues of AFAS on Financial Services, Harmonization among ASEAN countries capital markets in the ASEAN region and ASEAN integration and liberalization on Financial Services are analyzed.BDS statistic and R/S Analysis as our tools for nonlinearity testing are applied. Nonlinearity evidences in Jakarta Composite Index, Pilipino Stock Exchange Index and Straits Times Index are found.

A CcP model of the stock market

Directory of Open Access Journals (Sweden)

Shimshon Bichler

2017-05-01

Full Text Available Most explanations of stock market booms and busts are based on contrasting the underlying ‘fundamental’ logic of the economy with the exogenous, non-economic factors that presumably distort it. Our paper offers a radically different model, examining the stock market not from the mechanical viewpoint of a distorted economy, but from the dialectical perspective of capitalized power. The model demonstrates that (1 the valuation of equities represents capitalized power; (2 capitalized power is dialectically intertwined with systemic fear; and (3 systemic fear and capitalized power are mediated through strategic sabotage. This triangular model, we posit, can offer a basis for examining the asymptotes, or limits, of capitalized power and the ways in which these asymptotes relate to the historical and ongoing transformation of the capitalist mode of power.

Evidence of fueling of the 2000 new economy bubble by foreign capital inflow: implications for the future of the US economy and its stock market

Science.gov (United States)

Sornette, Didier; Zhou, Wei-Xing

2004-02-01

Previous analyses of a large ensemble of stock markets have demonstrated that a log-periodic power law (LPPL) behavior of the prices constitutes a qualifying signature of speculative bubbles that often land with a crash. We detect such a LPPL signature in the foreign capital inflow during the bubble on the US markets culminating in March 2000. We detect a weak synchronization and lag with the NASDAQ LPPL pattern. We propose to rationalize these observations by the existence of positive feedback loops between market-appreciation/increased-spending/increased-deficit-of-balance-of-payment/larger-foreign-surplus/increased-foreign-capital-inflows and so on. Our analysis suggests that foreign capital inflow has been following rather than causing the bubble. We then combine a macroeconomic analysis of feedback processes occurring between the economy and the stock market with a technical analysis of more than 200 years of the DJIA to investigate possible scenarios for the future, three years after the end of the bubble and deep into a bearish regime. We conclude that the low interest rates and depreciating dollar are the indispensable ingredients for a lower sustainable burden of the global US debt structure and for allowing the slow rebuilding of an internationally competitive economy. This will probably be accompanied by a weak stock market on the medium term as the growing Federal deficit is consuming a large part of the foreign surplus dollars and the stock market is remaining a very risky and unattractive investment. Notwithstanding strong surge of liquidity in recent months orchestrated by the Federal Reserve, this macroeconomic analysis which incorporates an element of collective behavior is in line with our recent analyses of the bearish market that started in 2000 in terms of a LPPL “anti-bubble”. We project this LPPL anti-bubble to continue at least for another year. On the short term, increased availability of liquidity (M1) and self-fulfilling bullish

Endogenous and exogenous dynamics in the fluctuations of capital fluxes. An empirical analysis of the Chinese stock market

Science.gov (United States)

Jiang, Z.-Q.; Guo, L.; Zhou, W.-X.

2007-06-01

A phenomenological investigation of the endogenous and exogenous dynamics in the fluctuations of capital fluxes is carried out on the Chinese stock market using mean-variance analysis, fluctuation analysis, and their generalizations to higher orders. Non-universal dynamics have been found not only in the scaling exponent α, which is different from the universal values 1/2 and 1, but also in the distributions of the ratio η= σexo / σendo of individual stocks. Both the scaling exponent α of fluctuations and the Hurst exponent Hi increase in logarithmic form with the time scale Δt and the mean traded value per minute , respectively. We find that the scaling exponent αendo of the endogenous fluctuations is independent of the time scale. Multiscaling and multifractal features are observed in the data as well. However, the inhomogeneous impact model is not verified.

ADVISABILITY OF MERGING THE BUCHAREST STOCK EXCHANGE AND THE SIBIU MONETARYFINANCIAL AND STOCK EXCHANGE

Directory of Open Access Journals (Sweden)

Aura Dudas

2011-01-01

Full Text Available Analysis of performances of local stock exchanges in the latest years points out thenecessity of increasing the visibility of the local capital market in the regional andEuropean landscape. A single stock market may have the effect of increased credibility,giving thus an impulse to the number of new listings and of new investors.

INDONESIA SHARI'AH COMPLIANCE STOCK RETURN BEHAVIOUR

Directory of Open Access Journals (Sweden)

Helma Malini

2017-04-01

Full Text Available This study aims to measures the behaviour of Indonesia Shari'ah compliance stock return. The measurement of return behaviour toward volatility will proved the capability of Indonesia Shari'ah compliance toward volatility that happened in Indonesia during the period of observation. Investing in Shari'ah compliance is quite different than investing in conventional stock which followed the capital market set of rules and law, Shari'ah compliance follows not only the capital market set of laws and but also the Islamic principles of principles. Most of the previous studies examine issues related to the conventional stocks and market. The present study take one step further by investigating issue related to Shari'ah compliance instrument. In the case of Shari'ah stock price in Indonesia, the dynamics volatility of the stock price can be minimized by taking an integrated screening process to the listed company, as precautions steps toward volatility

The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies

Directory of Open Access Journals (Sweden)

Elena Alexandra Nenu

2018-04-01

Full Text Available This paper analyzes the evolution of the main theories regarding the capital structure and the related impact on risk and corporate performance. The capital structure is a dynamic process that changes over time, depending on the variables that influence the overall evolution of the economy, a particular sector, or a company. It may also change depending on the company’s forecasts of its expected profitability, capital structure being, in fact, a risk–return compromise. This study contributes to the literature by investigating the drivers of capital structure of the firms from the Romanian market. For the econometric analysis, we applied multivariate fixed-effects regressions, as well as dynamic panel-data estimations (two-step system generalized method of moments, GMM on a panel comprising the companies listed on the Bucharest Stock Exchange. The analyzed period, 2000–2016, covers a cycle with significant changes in the Romanian economy. Our results showed that leverage is positively correlated with the size of the company and the share price volatility. On the other hand, the debt structure has a different impact on corporate performance, whether this calculated on accounting measures or seen as market share price evolution.

Physical and Microbiological Qualities of Kampong-Broiler Crossbred Chickens Meat Raised in Different Stocking Densities

Directory of Open Access Journals (Sweden)

C. A. Patria

2016-12-01

Full Text Available The crossbreeding between broiler and kampong chickens has been performed to develop a kampong-broiler strain chicken. The chicken stocking condition needs more attention as a part of animal welfare. This study was performed to identify the relationship between the stocking density and the stress based on Temperature Humidity Index (THI and the effect of stocking density on meat quality, i.e., physical, microbiological, and organoleptic. Ninety DOCs of Kampong-Broiler (KB were assigned into a completely randomized design with 3 treatments of stocking density  i.e., 8, 10, and 12 birds m-2. Each treatment was replicated 3 times. The experimental chickens were housed in 9 blocks of housing each with 1 x 1 m2 size. Data on physical and microbiology of meat qualities were analyzed with analysis of variance and continued with Duncan’s multiple range test. The organoleptic data were analyzed by using Kruskal-Wallis test. The result showed that the stocking density did not significantly affect the physical and hedonic quality of KB chicken’s breast. The stocking densities significantly affected (P<0.05 the microbiological variables of breast meat. The average value of THI during maintenance reached 28.98±1.25–29.33±1.32oC. The higher the animal density the higher the THI value that correlated to the stress condition. However, high stocking density did not affect the physical and hedonic quality of breast meat,  thus it can be accepted by the consumers. The higher the stocking density the higher the total plate count, Escherichia coli, and Staphylococcus aureus, without the presence of Salmonella sp. The meat quality of KB chickens raised in the stocking density of 10 birds m-2 meets the requirement of SNI 01-3924-2009.

Stock or stroke? Stock market movement and stroke incidence in Taiwan.

Science.gov (United States)

Chen, Chun-Chih; Chen, Chin-Shyan; Liu, Tsai-Ching; Lin, Ying-Tzu

2012-12-01

This paper investigates the impact of stock market movement on incidences of stroke utilizing population-based aggregate data in Taiwan. Using the daily data from the Taiwan Stock Exchange Capitalization Weighted Stock Index and from the National Health Insurance Research Database during 2001/1/1-2007/12/31, which consist of 2556 observations, we examine the effects of stock market on stroke incidence - the level effect and the daily change effects. In general, we find that both a low stock index level and a daily fall in the stock index are associated with greater incidences of stroke. We further partition the data on sex and age. The level effect is found to be significant for either gender, in the 45-64 and 65 ≥ age groups. In addition, two daily change effects are found to be significant for males and the elderly. Although stockholdings can increase wealth, they can also increase stroke incidence, thereby representing a cost to health. Copyright © 2012 Elsevier Ltd. All rights reserved.

Bond-market skepticism and stock-market exuberance in the hospital industry.

Science.gov (United States)

Robinson, James C

2002-01-01

The hospital industry needs funds to refurbish physical facilities, upgrade clinical and information technologies, and rebuild financial positions weakened by past external challenges and unwise organizational strategies. The financial markets offer a marked contrast in capital access, as bond creditors remain skeptical while stock investors plunge back into the once-shunned industry. Ironically, high stock prices may drive the for-profit chains to repeat past cycles of overexpansion, while weak bond ratings may save non-profit systems from a comparable loss of focus on the core business of operating and improving inpatient facilities. This turbulence has implications for public payment, antitrust, and financial disclosure policies.

Les estimations du capital humain au Canada : approche fondee sur le revenu de la vie entiere

OpenAIRE

Gu, Wulong; Wong, Ambrose

2010-01-01

Dans le present document, nous produisons une estimation de l'investissement en capital humain fonde sur le marche et du stock de ce capital au Canada au cours de la periode s'etendant de 1970 a 2007 selon l'approche fondee sur le revenu de la vie entiere. Nous comparons cette estimation a celle de l'investissement en capital physique et naturel et du stock de ce capital. En suivant la methode elaboree par Jorgenson et Fraumeni, nous estimons le stock de capital humain sous forme du revenu de...

Limitations of scaling and universality in stock market data

OpenAIRE

Kertesz, Janos; Eisler, Zoltan

2005-01-01

We present evidence, that if a large enough set of high resolution stock market data is analyzed, certain analogies with physics -- such as scaling and universality -- fail to capture the full complexity of such data. Despite earlier expectations, the mean value per trade, the mean number of trades per minute and the mean trading activity do not show scaling with company capitalization, there is only a non-trivial monotonous dependence. The strength of correlations present in the time series ...

Monetary Policy Shocks and Stock Returns Reactions: Evidence ...

African Journals Online (AJOL)

SIPHAMBE, H.K. (PROF.)

context is useful to both monetary authorities and investors. ... they should target stock prices or use stock price information as indicators of the monetary ... current account transactions, with remaining controls on the capital account eliminated ...

75 FR 82420 - Self-Regulatory Organizations, The NASDAQ Stock Market LLC; Order Approving Proposed Rule Change...

Science.gov (United States)

2010-12-30

...). SPACs are companies that raise capital in an initial public offering (``IPO'') to enter into future undetermined business combinations through mergers, capital stock exchanges, asset acquisitions, stock... issue additional shares at the time of the business combination to raise capital.\\17\\ According to the...

A fuzzy logic model to forecast stock market momentum in Indonesia's property and real estate sector

Science.gov (United States)

Penawar, H. K.; Rustam, Z.

2017-07-01

The Capital market has the important role in Indonesia's economy. The capital market does not only support the economy of Indonesia but also being an indicator Indonesia's economy improvement. Something that has been traded in the capital market is stock (stock market). Nowadays, the stock market is full of uncertainty. That uncertainty values make predicting stock market is all that we have to do before we make a decision in the stock market. One that can be predicted in the stock market is momentum. To forecast stock market momentum, it can use fuzzy logic model. In the process of modeling, it will be used 14 days historical data that consisting the value of open, high, low, and close, to predict the next 5 days momentum categories. There are three momentum categories namely Bullish, Neutral, and Bearish. To illustrate the fuzzy logic model, we will use stocks data from several companies that listed on Indonesia Stock Exchange (IDX) in property and real estate sector.

Lending Groups and Different Social Capitals in Developed and Developing Countries

Directory of Open Access Journals (Sweden)

Diego A. B. Marconatto

2016-11-01

Full Text Available Lending groups (LGs and social capital are two central elements to the many microfinance solutions operating around the world. However, LG effectiveness in reducing transaction costs and lending risks for microfinance institutions (MFIs is mediated by institutional environments. Starting from this assumption, we discuss the existent interactions between the institutional environments of developed (Anglo-Saxon and communitarian and developing countries with different stocks of social capital (individual, network and institutional and the influences of this interaction on LG effectiveness. In order to do so, we applied the institutional perspective of O. Williamson to build a theoretical framework to examine the interaction of all these conditions, allowing for analysis of their main relations within the microfinance context. Based on this framework, we propose on the one hand that in developing and Anglo-Saxon developed nations, stocks of both individual and network social capital are the most important for an LG’s effectiveness. However, in Anglo-Saxon countries, these two stocks of social capital are complemented by formal contracting devices. In communitarian developed countries, on the other hand, the stocks of institutional social capital have a stronger positive impact on LG dynamics.

Stock selection using a hybrid MCDM approach

Directory of Open Access Journals (Sweden)

Tea Poklepović

2014-12-01

Full Text Available The problem of selecting the right stocks to invest in is of immense interest for investors on both emerging and developed capital markets. Moreover, an investor should take into account all available data regarding stocks on the particular market. This includes fundamental and stock market indicators. The decision making process includes several stocks to invest in and more than one criterion. Therefore, the task of selecting the stocks to invest in can be viewed as a multiple criteria decision making (MCDM problem. Using several MCDM methods often leads to divergent rankings. The goal of this paper is to resolve these possible divergent results obtained from different MCDM methods using a hybrid MCDM approach based on Spearman’s rank correlation coefficient. Five MCDM methods are selected: COPRAS, linear assignment, PROMETHEE, SAW and TOPSIS. The weights for all criteria are obtained by using the AHP method. Data for this study includes information on stock returns and traded volumes from March 2012 to March 2014 for 19 stocks on the Croatian capital market. It also includes the most important fundamental and stock market indicators for selected stocks. Rankings using five selected MCDM methods in the stock selection problem yield divergent results. However, after applying the proposed approach the final hybrid rankings are obtained. The results show that the worse stocks to invest in happen to be the same when the industry is taken into consideration or when not. However, when the industry is taken into account, the best stocks to invest in are slightly different, because some industries are more profitable than the others.

Looking Back on the Stock Market

Institute of Scientific and Technical Information of China (English)

无

2007-01-01

@@ Looking back at the ups and downs of China's stock market in 2007,it is clear that it has developed far beyond people's expectation. While the stock index constantly reaches new highs and the size of the market becomes larger and larger, the Chinese financial market has also reintegrated. A multi-level revolution occurred in 2007, involving changes in stock structure, the variety of core composition, chip cost of the capital market, investor makeup, as well as trade rules and operational methods.

Portfolio volatility of Islamic and conventional stock: The case of Indonesia stock market

Directory of Open Access Journals (Sweden)

Aldrin Herwany

2013-12-01

Full Text Available Conventional finance suggests that the higher the risk of an investment, the higher the return it should give. Nevertheless, whether Islamic stocks that offer alternative investment in the stock market suggest different risk-return relationship still needs to be investigated. This empirical study is aimed at assessing risk-return behavior of Islamic stocks. This study employs cross sectional data of portfolio developed using beta-rank and market capitalization, in which daily data will better reflect the real volatility. This study also measures volatility of both conventional and Islamic stocks using Value-at-Risk (VaR. To check whether Islamic stocks are immune from any impact of financial crisis, this study utilizes three periods of observation, i.e., before, during and after the 2008 crisis. This study assesses risk and return using Multi-index model, in which variables tested are the respective fundamental factors. Results of this study will provide more accurate approach in Islamic stocks analysis.

Stock prices forecasting based on wavelet neural networks with PSO

OpenAIRE

Wang Kai-Cheng; Yang Chi-I; Chang Kuei-Fang

2017-01-01

This research examines the forecasting performance of wavelet neural network (WNN) model using published stock data obtained from Financial Times Stock Exchange (FTSE) Taiwan Stock Exchange (TWSE) 50 index, also known as Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX), hereinafter referred to as Taiwan 50. Our WNN model uses particle swarm optimization (PSO) to choose the appropriate initial network values for different companies. The findings come with two advantages. First...

12 CFR 933.5 - Disclosure to members concerning capital plan and capital stock conversion.

Science.gov (United States)

2010-01-01

... total capital-to-asset ratio (both of which shall be based on the same financial data used for the... the liquidity, capital, earnings or continuing operations of the Bank, including those affecting...

Factors of Selection of the Stock Allocation Method

Directory of Open Access Journals (Sweden)

Rohov Heorhii K.

2014-03-01

Full Text Available The article describes results of the author’s study of factors of making strategic decisions on selection of methods of stock allocation by public joint stock companies in Ukraine. The author used the Random forest mathematical apparatus of classification trees building and also informal methods. The article analyses the reasons that restrain public allocation of stock. It shows significant influence upon selection of a method of stock allocation of such factors as capital concentration, balance rate of corporate rights, sector of economy and significant participation of the institutes of common investment or the state in the authorised capital. The built hierarchical model of classification of factors of the issuing policy of joint stock companies finds logical justification in specific features of the institutional environment, however, it does not fit into the framework of the classical concept of the market economy. The model could be used both for formation of goals of corporate financial strategies and in the process of improvement of state regulation of activity of securities issuers. The prospect of further studies in this direction is identification of transformation of factors of selection of the stock allocation method under conditions of revival of the stock market.

Macroeconomic Forces and Stock Returns in Vietnam

OpenAIRE

Phan, Van Hang

2008-01-01

Capital market development, especially the appearance of Vietnamese equity market recently has a strategic importance in the economic growth and structural reform process of Vietnam (Chun et al, 2003). This dissertation focuses on the impacts of macroeconomic forces on stock market returns in Vietnamese stock market which has not been investigated in detail before, and thereby to contribute further literature on this new emerging stock market. Specifically, the research will intensively inves...

51 The Role of Stock Market Development on Economic Growth in ...

African Journals Online (AJOL)

User

2012-01-24

Jan 24, 2012 ... An International Multidisciplinary Journal, Ethiopia ... study measures the relationship between stock market development indices ... The stock market capitalization ratio was used as a ... market performance and economic growth. ... With well-functional financial sector or banking sector, stock markets can.

Interrelation of Sport Participation, Physical Activity, Social Capital and Mental Health in Disadvantaged Communities: A SEM-Analysis.

Science.gov (United States)

Marlier, Mathieu; Van Dyck, Delfien; Cardon, Greet; De Bourdeaudhuij, Ilse; Babiak, Kathy; Willem, Annick

2015-01-01

The Health through Sport conceptual model links sport participation with physical, social and psychological outcomes and stresses the need for more understanding between these outcomes. The present study aims to uncover how sport participation, physical activity, social capital and mental health are interrelated by examining these outcomes in one model. A cross-sectional survey was conducted in nine disadvantaged communities in Antwerp (Belgium). Two hundred adults (aged 18-56) per community were randomly selected and visited at home to fill out a questionnaire on socio-demographics, sport participation, physical activity, social capital and mental health. A sample of 414 adults participated in the study. Structural Equation Modeling analysis showed that sport participation (β = .095) and not total physical activity (β = .027) was associated with better mental health. No association was found between sport participation and community social capital (β = .009) or individual social capital (β = .045). Furthermore, only community social capital was linked with physical activity (β = .114), individual social capital was not (β = -.013). In contrast, only individual social capital was directly associated with mental health (β = .152), community social capital was not (β = .070). This study emphasizes the importance of sport participation and individual social capital to improve mental health in disadvantaged communities. It further gives a unique insight into the functionalities of how sport participation, physical activity, social capital and mental health are interrelated. Implications for policy are that cross-sector initiatives between the sport, social and health sector need to be supported as their outcomes are directly linked to one another.

Interrelation of Sport Participation, Physical Activity, Social Capital and Mental Health in Disadvantaged Communities: A SEM-Analysis

Science.gov (United States)

Marlier, Mathieu; Van Dyck, Delfien; Cardon, Greet; De Bourdeaudhuij, Ilse; Babiak, Kathy; Willem, Annick

2015-01-01

Background The Health through Sport conceptual model links sport participation with physical, social and psychological outcomes and stresses the need for more understanding between these outcomes. The present study aims to uncover how sport participation, physical activity, social capital and mental health are interrelated by examining these outcomes in one model. Methods A cross-sectional survey was conducted in nine disadvantaged communities in Antwerp (Belgium). Two hundred adults (aged 18–56) per community were randomly selected and visited at home to fill out a questionnaire on socio-demographics, sport participation, physical activity, social capital and mental health. A sample of 414 adults participated in the study. Results Structural Equation Modeling analysis showed that sport participation (β = .095) and not total physical activity (β = .027) was associated with better mental health. No association was found between sport participation and community social capital (β = .009) or individual social capital (β = .045). Furthermore, only community social capital was linked with physical activity (β = .114), individual social capital was not (β = -.013). In contrast, only individual social capital was directly associated with mental health (β = .152), community social capital was not (β = .070). Conclusion This study emphasizes the importance of sport participation and individual social capital to improve mental health in disadvantaged communities. It further gives a unique insight into the functionalities of how sport participation, physical activity, social capital and mental health are interrelated. Implications for policy are that cross-sector initiatives between the sport, social and health sector need to be supported as their outcomes are directly linked to one another. PMID:26451731

SKEWNESS IN STOCK RETURNS: EVIDENCE FROM THE BUCHAREST STOCK EXCHANGE DURING 2000 – 2011

Directory of Open Access Journals (Sweden)

IULIAN PANAIT

2012-05-01

Full Text Available Our paper investigates the symmetry in stock returns of the 30 most liquid companies traded on Bucharest Stock Exchange during 2000 – 2011 and also the most representative 5 market indices. Our daily data shows that skewness estimates are slightly negative for most indices and individual stocks, but only a few present values significantly different from the characteristics of a normal distribution. We compare our results with skewness estimates for 21 major and emerging stock market indices around the world and find that such results are similar to other low capitalization and trading volume markets. For all the Romanian and international assets studied, the Studentized-Range (St-R and Jarque-Bera (J-B tests reject the hypothesis of normal distribution of daily returns.

Corporate taxation and capital accumulation

OpenAIRE

Stephen Bond; Jing Xing

2010-01-01

We present new empirical evidence that aggregate capital accumulation is strongly influenced by the user cost of capital and, in particular, by corporate tax incentives summarised in the tax-adjusted user cost. We use sectoral panel data for the USA, Japan, Australia and ten EU countries over the period 1982-2007. Our panel combines data on capital stocks, value-added and relative prices from the EU KLEMS database with measures of effective corporate tax rates from the Oxford University Centr...

The performance of Libyan stock market

Directory of Open Access Journals (Sweden)

Atiya Aljbiri

2012-01-01

Full Text Available The objective of this paper is to answer the following question:. To what extent Libyan stock market developed to contribute to economic growth in Libya? This can be evaluated by using many financial indicators, these include stock market size, activity and efficiency, as well as the study including the regulatory framework, and information technology (IT set in place by the market authorities. However, descriptive and comparative method was used. The results indicated that, despite the modest progress made in a very short time regarding all indicators which the paper calculated, however, it can be said that Libyan stock market remain largely underdeveloped, small and relatively inefficient. Its market capitalization to GDP is very low and investors have no access to long-term capital. In addition, the market still have very low liquidity and investors still have a limited choice of financial instruments and face liquidity problems. In the end of this paper was its conclusion a set of recommendations that can be used in developing a program that aims to speed the development of Libyan stock market and increase its efficiency.

Bridging social capital and the imperative of leadership ...

African Journals Online (AJOL)

This paper asserts that there is a nexus between the nature and character of leadership and the stock and genre of social capital in a polity. Specifically, it posits that low levels of bridging social capital (generalised trust) in contemporary Nigeria are reflective of the abysmally low levels of leadership capital possessed by the ...

Capital Structure: Target Adjustment Model and a Mediation Moderation Model with Capital Structure as Mediator

OpenAIRE

Abedmajid, Mohammed

2015-01-01

This study consists of two models. Model one is conducted to check if there is a target adjustment toward optimal capital structure, in the context of Turkish firm listed on the stock market, over the period 2003-2014. Model 2 captures the interaction between firm size, profitability, market value and capital structure using the moderation mediation model. The results of model 1 have shown that there is a partial adjustment of the capital structure to reach target levels. The results of...

the mauritius stock exchange: sectoral analysis, risk and return

African Journals Online (AJOL)

cistvr

In Section III beta estimates are calculated for each share using the Capital. Asset Pricing ... In a stock market therefore, investors would need information such as the ..... In Mauritius however, capital account restrictions were lifted only in 1995 ...

A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange

Directory of Open Access Journals (Sweden)

Mohammad Khodaei Valahzaghard

2014-10-01

Full Text Available This paper presents an empirical investigation to study the effects of free cash flow, share diversification and capital structure on Tobin-Q in selected firms on Tehran Stock Exchange. The population of the survey includes 520 firms listed on this exchange until year 2012 and the survey uses a sample of 105 firms, randomly. The study uses the models originally developed by Palepu (1985 [Palepu, K. (1985. Diversification strategy, profit performance and the entropy measure. Strategic Management Journal, 6(3, 239-255.] to measure the effects of different factors on Tobin Q. The study has indicated that while capital structure and free cash flow influence positively on Tobin Q, diversification has maintained a negative and meaningful relationship with Tobin Q.

The Impulsive Stock Market of Bangladesh and the Great Recession

Directory of Open Access Journals (Sweden)

Saif Hossain

2013-07-01

Full Text Available The paper investigates whether the stock market of Bangladesh can be related with the last world recession. The Pearson’s correlation analysis model was used to find the correlation between the Dhaka Stock Exchange General index and real GDP growth rate of the world. The findings show that no statistically significant correlation exists between the two variables inferring that the stock market of Bangladesh was not significantly affected by ‘the great recession’ (2007-2009. The findings of this study are inconsistent with the results of previous studies which claimed that the Bangladesh stock market shares a common stochastic trend with the capital market of USA. The results of this study may be explained mainly by domestic factors such as low market capitalization, market inefficiency, strict monitoring and control by the Security and Exchange Commission and low international participation in the stock market of Bangladesh. All these factors, along with the inconsistency with past results, instigate further investigation.

The impact of capital markets on the economic growth in South Africa

Directory of Open Access Journals (Sweden)

Queen Sarah Khetsi

2015-03-01

Full Text Available Capital markets are institutions that actively play a role in the development of an economy. This study investigates the impact of capital markets on economic growth in South Africa from 1971-2013. The results indicated that there is a positive relationship between economic growth and capital markets in South Africa. Furthermore, the country should focus on factors that contribute to the development of capital markets, such as the development of financial institutions. The study contributes to the existing body of empirical literature with regards to economic growth and capital markets, especially with reference to stock markets as South Africa has one of the largest stock markets (JSE in the world.

---Stock Market Devpt in Ethiopia

African Journals Online (AJOL)

Jetu_E_Ch

The term stock can be defined as “the capital or principal fund raised by a corporation .... 20 Tiruneh Legesse (2012), “Establishing Financial Markets in Ethiopia: the .... improve accounting and auditing standards, provide effective tools for.

PENGARUH KINERJA INTELLECTUAL CAPITAL TERHADAP KINERJA INTELLECTUAL CAPITAL PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI

Directory of Open Access Journals (Sweden)

Windri Windri

2010-11-01

Full Text Available The aims of this study are to analyze the effect of intellectual capital performance on intellectualcapital disclosure in annual report of manufacturing company listed in Indonesia Stock Exchange(IDX period 2004-2006 and to analyze the level of intellectual capital disclosure in annualreport period 2004-2006. 50 companies was taken as samples in the research.This paper usescontent analysis to compile a measure of disclosure on each annual report of manufacturingcompany and statistical analysis to test whether intellectual capital performance has a positiveeffect to intellectual capital disclosure. Based on statistical analysis, it is concluded that theintellectual capital performance and firm size have a positive effect to intellectual capitaldisclosure. Leverage has no effect to intellectual capital disclosure. The result of content analysisshows that the intellectual capital disclosure in annual report of manufacturing company period2004-2006 are less than 50%.

Capital Adequacy in Banks: Reflections on Selected Banks in ...

African Journals Online (AJOL)

In principle, bank capital serves two functions. First, it represents the value of shareholder's equity, and secondly, it is the value of the buffer stock available to absorb unexpected losses. Because of this second function, it is argued that a bank's capital must be adequate. Adequate capital is the foundation of any banking ...

A generalized business cycle model with delays in gross product and capital stock

International Nuclear Information System (INIS)

Hattaf, Khalid; Riad, Driss; Yousfi, Noura

2017-01-01

Highlights: • A generalized business cycle model is proposed and rigorously analyzed. • Well-posedness of the model and local stability of the economic equilibrium are investigated. • Direction of the Hopf bifurcation and stability of the bifurcating periodic solutions are determined. • A special case and some numerical simulations are presented. - Abstract: In this work, we propose a delayed business cycle model with general investment function. The time delays are introduced into gross product and capital stock, respectively. We first prove that the model is mathematically and economically well posed. In addition, the stability of the economic equilibrium and the existence of Hopf bifurcation are investigated. Our main results show that both time delays can cause the macro-economic system to fluctuate and the economic equilibrium to lose or gain its stability. Moreover, the direction of the Hopf bifurcation and the stability of the bifurcating periodic solutions are determined by means of the normal form method and center manifold theory. Furthermore, the models and results presented in many previous studies are improved and generalized.

Is there any relation between intellectual capital and the capital structure of a company? The case of Polish listed companies

Directory of Open Access Journals (Sweden)

Monika Bolek

2016-09-01

Full Text Available This study investigates the relationship of the intellectual capital of a company (proxied by its intangible assets, with leverage and equity and capital structure. Our empirical results indicate that there is a negative relation between the intellectual capital (intangible assets of a company and its leverage based on the Warsaw Stock Exchange main market and NewConnect alternative market. Moreover, the equity capital is found positively related to the level of intangibles in each of the two markets. These results support the thesis that intellectual capital (intangible assets influences the capital structure of a company.

Legal Protection for Investor in Capital Market Stock Trading

OpenAIRE

Sofyan, Tito

2013-01-01

Protection for investor is the crucial issue because it has been found many evidence of the misuse of company's resources for extensive period. Moreover, there are also the case of stock lose, case in IPO, short selling, securities fraud, market manipulation, and insider trading. Stock market is abouttrust, if it lose, the market will collpase and it will affect the other sector, mainly economic sector. Undang-UndangNomor 8 Tahun 1995 tentangPasar Modal (UUPM) is one of the legal order to s...

The offense of capital market manipulation

Directory of Open Access Journals (Sweden)

Laura MANEA

2012-01-01

Full Text Available The novelty and use of current technology in stock exchange trading operations are just a few reasons for which the capital market domain is a controversial one, and the number of crimes already committed in the financial market raises the issue of securing the supply-demand relationship of capital and capital investment protection. If in the Community law there is no incrimination of market abuse, Romanian legislature sanctioned the capital market manipulation as criminal acts committed intentionally in order to discourage such practices and also to increase the confidence of investors in the financial market

Public Capital, Congestion and Private Production in Australia

OpenAIRE

Lei Lei Song

2002-01-01

This paper is an empirical investigation into the impact of public capital on the private sector’s economic activity in Australia. In particular, it is assumed that the contribution of public capital to private factor productivity is subject to congestion. New data sets of capital stocks and private output are constructed for the Australian economy. By estimating flexible functional forms of private sector production functions with congestion in public capital services, the paper shows that p...

DOMESTIC VS INTERNATIONAL RISK DIVERSIFICATION POSSIBILITIES IN SOUTHEASTERN EUROPEAN STOCK MARKETS

Directory of Open Access Journals (Sweden)

Sinisa Bogdan

2016-12-01

Full Text Available Modern portfolio theory is one of the most important investment decision tools in finances. In 1952 Harry Markowitz set the foundations of the Modern portfolio theory, since than this theory was a backbone of many studies that dealt with investment decisions. This research applies mean-variance portfolio optimization on the international Southeastern Europe and domestic Croatian stock market exchange. Aim of this research is to compare risk diversification possibilities on the Southeastern European capital markets and on the Croatian Capital market. By analyzing nine stock market indices in the Southeastern Europe and twenty stocks from Zagreb Stock Exchange in the period of 36 months, results clearly show that internationally diversified portfolios offer better portfolio risk reduction than domestically diversified portfolios. Lowest achieved risk in international portfolio outperformed lowest achieved risk in domestic portfolio. Since risk is lower, returns are also much lower compared to domestic stock portfolios. Results of this research also report that domestic stock portfolios outperformed international portfolios at the risk level equal or higher than 0,97%, for the same risk, domestic portfolios offer greater returns.

Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Directory of Open Access Journals (Sweden)

Zainal Abidin Sahabuddin

2017-07-01

Full Text Available Debt was able to be used by firm as source of funds for investment-related activities,especially when the amount of retained earnings was not sufficient to cover the amount of investment needed. Naturally, the use of debt definitely caused the agency conflict between firm shareholders and debt holders. To reduce this conflict, the existence of fixed assets as collateral was needed when firm decided to borrow money from debt holders.The purpose of this study was to prove the agency theory perspective by testing an impact of asset structure on capital structure of firms. The population of this study was the firms listed on Indonesia Stock Exchange and Malaysian Stock Exchange. The firms as sample were taken from the population by conducting stratified random sampling method. The pooled data regression model was used as the data analysis method. This result of this study showed that asset structure had the positive impact on capital structure. It meant the causal relationship between asset structure and capital structure happened and was supported by the agency theory perspective.

THE CONNECTION BETWEEN ECONOMIC GROWTH AND STOCK MARKETS

Directory of Open Access Journals (Sweden)

Andreea Maria PECE

2015-04-01

Full Text Available This paper examines the connection between economic growth and stock market performance in the case of an emerging economy, namely Romania, by using quarterly financial data, during the period 2000-2013. This topic is widely studied in the financial literature and seeks to provide an answer for the following questions: does economic growth influences the capital market, does capital market influences economic growth, or there is no connection between these variables. I have analyzed the long term relationship between economic growth and stock market for Romania, by applying Johansen cointegration test, Granger causality and Gregory Hansen cointegration test, which allows the presence of the structural breaks in the time series. The empirical results obtained highlighted that portfolio investments have a positive impact on economic growth and the GDP growth engages in turn, a long term positive capital markets return. The main conclusion of this study is that in the case of Romanian economy, is a bi-directional link between the economic growth and the capital market performance.

Corporate governance and intellectual capital

Directory of Open Access Journals (Sweden)

Rahmat Alizadeh

2014-01-01

Full Text Available The purpose of this paper is to examine the association between corporate governance and Intellectual capital in the pharmaceutical companies accepted in Tehran Stock Exchange over the period 2004-2009 using a regression based model. The study investigates the impacts of three some independent variables of the corporate governance (i.e. the number of board members, the relative extent of nonexecutive to executive directors, the auditing committee. The results suggest that corporate governance had no special effect on intellectual capital in the pharmaceutical companies. Furthermore among corporate governance's variables, the first one (i.e. board size had negative impact on firms' intellectual capital and the second and the third variables had no effects on intellectual capital.

Farmers' involvement in capital markets investment as an alternative ...

African Journals Online (AJOL)

... markets investment were significantly associated with their investment in the capital market. The study recommended that agricultural extension agents should be mobilised to develop and disseminate information on the capital markets to farmers. Stock brokers should also visit farmer groups for enlightenment campaigns.

Impacts of the Basle Capital Standard on Japanese Banks' Behavior

OpenAIRE

Takatoshi Ito; Yuri Nagatake Sasaki

1998-01-01

This paper examines how the risk based capital standards, the so-called Basle Accord between 1990 and 1993. As the Japanese stock prices fell, banks' latent capital gains, which are part of tier II capital, became smaller. Empirical findings are consistent with a view that banks with lower capital ratios tended to issue more subordinated debts (tier II) and to reduce lending (risk assets).

Technology penetration and capital stock turnover. Lessons from IEA scenario analysis

Energy Technology Data Exchange (ETDEWEB)

Philibert, C. [International Energy Agency IEA, Organisation for Economic Co-operation and Development OECD, Paris (France)

2007-05-15

The aim of this paper is to reflect on the significant differences between the emissions reductions projections in mid-term and long-term scenarios, and to explore their policy implications. It draws mainly on two recent IEA publications: the 2006 World Energy Outlook (WEO), which contains energy and energy-related CO2 projections up to 2030, and the 2006-published Energy Technology Perspectives (ETP), which considers scenarios and strategies up to 2050. The analysis focuses on a comparison of the Alternative Policy Scenario of the 2006 WEO, and the various Accelerated Technology (ACT) Scenarios in the ETP. The next section provides the necessary background on these two publications and their energy-related CO2 emissions by 2030 and 2050, respectively. The third section investigates in some more depth the reasons for the large differences in the amount of emission reductions at these dates. Capital stock turnover and technology maturation lead times, in particular, are identified as primary reasons for the differences. The fourth section suggests several possible policy conclusions that can be drawn from this analysis. They include thought pieces with respect to the action required in the short-term; to the necessity of long-term signals; to the advantages and limitations of short-term targets; and to the opportunities and challenges the international community faces with respect to emission reductions in developing countries.

Taxing Options: Do Ceos Respond To Favorable Tax Treatment Of Stock Options?

OpenAIRE

Martin Gritsch; Tricia Coxwell Snyder

2007-01-01

CEO stock option compensation increased tremendously during the 1990s. During this period, the spread between the marginal income and capital gains tax rates increased substantially, creating the potential for tax avoidance. Using ExecuComp data from 1992-2000, we estimate CEOs’ responsiveness to changes in these tax rates. Our findings show that an increase in the marginal income and a decrease in the capital gains tax rate create a significant increase in stock option compensation. Furtherm...

Enterprises from NewConnect Stock Market

Directory of Open Access Journals (Sweden)

Grzegorz Gołębiowski

2009-12-01

Full Text Available Corporate capital structure has been the subject of extensive research in the last decades. The article briefly examines the existing theories of corporate capital structure. However, applying those concepts in practice has brought mixed results. This study is another attempt to determine capital structure in selected companies as well as analyze impact of the pre-defined debt level on effectiveness of economic entity. Variables like size and sector and their influence on debt-raising ability have also been verified. 10 companies permitted to trade on NewConnect stock market constituted the sample for this study.

The Transmission of U.S. Election Cycles to International Stock Returns

OpenAIRE

Stephen R Foerster; John J Schmitz

1997-01-01

This paper examines the international pervasiveness and importance of the previously uncovered four-year U.S. election cycle whereby U.S. stock returns are significantly lower, and negative, in year 2 following U.S. presidential election relative to years 1, 3 and 4. All eighteen countries examined over the 1957 to 1996 time period possess lower local currency stock market capital gains returns in year 2 (-0.66%) relative to the average capital gains of years 1, 3 and 4 (11.68%). These predom...

12 CFR 225.107 - Acquisition of stock in small business investment company.

Science.gov (United States)

2010-01-01

...) of the Act makes it unlawful for a bank to invest any of its funds in the capital stock of any other... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Acquisition of stock in small business...) Regulations Financial Holding Companies Interpretations § 225.107 Acquisition of stock in small business...

MODEL PENENTUAN HARGA SAHAM: PENGUJIAN CAPITAL ASSET PRICING MODEL MELALUI PENGUJIAN ECONOMIC VALUE ADDED

Directory of Open Access Journals (Sweden)

Suripto Suripto

2017-03-01

Full Text Available This research tested the influence of characteristics of the firms and of EVA (Eco-nomic Value Added to stock of returns. This Research sample was company Self-100 ValueCreator of year 2001 until 2006. Result of research indicated that company size measure,profitability, capital structure (characteristics of the firms and EVA by stimulant had aneffect on significant to stock of returns, but by partial only characteristics company. Condi-tion of company fundamentals had an effect on significance to stock of returns. This indica-tion that investor still considered factors of fundamentals was having investment. EVA didnot have an effect on significant to stock of returns. This finding indicated that Model deter-mination of stock of returns (CAPM Irrelevant determined the level of EVA and also indicatedthat CAPM (Capital Assets Pricing Model was not relevant in determining stock of returns inIndonesian Stock Exchange.

Recurrence quantification analysis of global stock markets

Science.gov (United States)

Bastos, João A.; Caiado, Jorge

2011-04-01

This study investigates the presence of deterministic dependencies in international stock markets using recurrence plots and recurrence quantification analysis (RQA). The results are based on a large set of free float-adjusted market capitalization stock indices, covering a period of 15 years. The statistical tests suggest that the dynamics of stock prices in emerging markets is characterized by higher values of RQA measures when compared to their developed counterparts. The behavior of stock markets during critical financial events, such as the burst of the technology bubble, the Asian currency crisis, and the recent subprime mortgage crisis, is analyzed by performing RQA in sliding windows. It is shown that during these events stock markets exhibit a distinctive behavior that is characterized by temporary decreases in the fraction of recurrence points contained in diagonal and vertical structures.

Social capital, desire to increase physical activity and leisure-time physical activity: A population-based study.

OpenAIRE

Lindström, Martin

2011-01-01

OBJECTIVES: To investigate the associations between social capital (trust) and leisure-time physical activity. STUDY DESIGN: The 2004 Public Health Survey in Skåne is a cross-sectional study. METHODS: In total, 27,757 individuals aged 18-80 years answered a postal questionnaire (59% participation). Logistic regression models were used to investigate the associations between trust, desire to increase physical activity and leisure-time physical activity. RESULTS: ...

An Evaluation of CAPM’s validity in the Romanian Stock Exchange

Directory of Open Access Journals (Sweden)

Camelia Colescu

2015-03-01

Full Text Available The present study tries to test the validity of the capital asset pricing model (CAPM in the Bucharest Stock Exchange Market from Romania. The tested period for this study covers 3 years from 2011 to 2013. The sample is composed by 20 companies listed at the Bucharest Stock Exchange. The relationship between risk and expected return is being examined. It was found that the security market line’s slope is downwards sloping and negative and so it was concluded that CAPM does not hold. As a general conclusion there is a weak practical implication of the Capital Asset Pricing Model in Romanian stock market. Thus, other important variables should be considered to find an effective and appropriate pricing mechanism.

THE EFFECT OF ACQUISITION ON THE STOCK RETURNS OF ACQUIRING COMPANIES: EXAMINING THE EFFECT OF ACQUISITIONS OCCURED THROUGH THE PERMISSION OF CAPITAL MARKET BOARD ON THE STOCK RETURNS OF ACQUIRING COMPANIES

Directory of Open Access Journals (Sweden)

LEVENT ÇITAK

2013-06-01

Full Text Available A merger can be defined as the economical and legal integration of two or more firms. On the other hand, an acquisiton is the transfer of all asssets and liabilities of the target firm to the acquiring firm. In the literature, merger and acquisition concepts can be used interchangeably. Firms tend to merge for the sake of creating snergy, competitive advantage, diversification, increasing firm value etc. Mergers and acquisitions are sometimes in favour of acquiring firms’ stock holders and sometimes target firms’ stock holders. Merger gains change, depending on the type of the merger and form of payment. In this study, mergers that occured through the permission of Capital Market Board have been used for the analyses. Of the mergers which have the permission, acquiring firms that are listed on Istanbul Stock Exchange have been considered and postacquisition buy and hold abnormal returns and cumulative abnormal returns have been calculated. It is concluded that postacquisition abnormal returns aren’t statistically significant. On the other hand, 1 month, 3 month, 6 month, 1 year and 2 year buy and hold abnormal returns and cumulative abnormal returns of the acquiring firms that use different payment methods are not statistically different from each other, on the basis of same return horizon. Two different methods of abnormal return calculation don’t make any difference in postacquisition abnormal returns, either.

Do Earthquakes Shake Stock Markets?

Science.gov (United States)

Ferreira, Susana; Karali, Berna

2015-01-01

This paper examines how major earthquakes affected the returns and volatility of aggregate stock market indices in thirty-five financial markets over the last twenty years. Results show that global financial markets are resilient to shocks caused by earthquakes even if these are domestic. Our analysis reveals that, in a few instances, some macroeconomic variables and earthquake characteristics (gross domestic product per capita, trade openness, bilateral trade flows, earthquake magnitude, a tsunami indicator, distance to the epicenter, and number of fatalities) mediate the impact of earthquakes on stock market returns, resulting in a zero net effect. However, the influence of these variables is market-specific, indicating no systematic pattern across global capital markets. Results also demonstrate that stock market volatility is unaffected by earthquakes, except for Japan.

Comparison of vector autoregressive (VAR) and vector error correction models (VECM) for index of ASEAN stock price

Science.gov (United States)

Suharsono, Agus; Aziza, Auliya; Pramesti, Wara

2017-12-01

Capital markets can be an indicator of the development of a country's economy. The presence of capital markets also encourages investors to trade; therefore investors need information and knowledge of which shares are better. One way of making decisions for short-term investments is the need for modeling to forecast stock prices in the period to come. Issue of stock market-stock integration ASEAN is very important. The problem is that ASEAN does not have much time to implement one market in the economy, so it would be very interesting if there is evidence whether the capital market in the ASEAN region, especially the countries of Indonesia, Malaysia, Philippines, Singapore and Thailand deserve to be integrated or still segmented. Furthermore, it should also be known and proven What kind of integration is happening: what A capital market affects only the market Other capital, or a capital market only Influenced by other capital markets, or a Capital market as well as affecting as well Influenced by other capital markets in one ASEAN region. In this study, it will compare forecasting of Indonesian share price (IHSG) with neighboring countries (ASEAN) including developed and developing countries such as Malaysia (KLSE), Singapore (SGE), Thailand (SETI), Philippines (PSE) to find out which stock country the most superior and influential. These countries are the founders of ASEAN and share price index owners who have close relations with Indonesia in terms of trade, especially exports and imports. Stock price modeling in this research is using multivariate time series analysis that is VAR (Vector Autoregressive) and VECM (Vector Error Correction Modeling). VAR and VECM models not only predict more than one variable but also can see the interrelations between variables with each other. If the assumption of white noise is not met in the VAR modeling, then the cause can be assumed that there is an outlier. With this modeling will be able to know the pattern of relationship

The Role of Stock Market Development on Economic Growth in ...

African Journals Online (AJOL)

The method of analysis used is Ordinary Least Square (OLS) techniques. The study measures the relationship between stock market development indices and economic growth. The stock market capitalization ratio was used as a proxy for market size while value traded ratio and turnover ratio were used as proxy for market ...

Techniques and Assessment of Small Business Capital | Narayanan ...

African Journals Online (AJOL)

The optimal capital structure is the one that strikes a balance between risk and return and thereby maximizes the price of the stock and simultaneously minimizes the cost of capital. When evaluating a small business for a loan, lenders ideally like to see a two-year operating history, a stable management group, a desirable ...

Dollars for lives: the effect of highway capital investments on traffic fatalities.

Science.gov (United States)

Nguyen-Hoang, Phuong; Yeung, Ryan

2014-12-01

This study examines the effect of highway capital investments on highway fatalities. We used state-level data from the 48 contiguous states in the United States from 1968 through 2010 to estimate the effects on highway fatalities of capital expenditures and highway capital stock. We estimated these effects by controlling for a set of control variables together with state and year dummy variables and state-specific linear time trends. We found that capital expenditures and capital stock had significant and negative effects on highway fatalities. States faced with declines in gas tax revenues have already cut back drastically on spending on roads including on maintenance and capital outlay. If this trend continues, it may undermine traffic safety. While states and local governments are currently fiscally strained, it is important for them to continue investments in roadways to enhance traffic safety and, more significantly, to save lives. Copyright © 2014 National Safety Council and Elsevier Ltd. All rights reserved.

THE PLACE OF BUCHAREST STOCK EXCHANGE AMONGST THE CAPITAL MARKETS FROM CENTRAL AND EASTERN EUROPE

OpenAIRE

Iulia-Oana Stefan

2015-01-01

This study performs a thorough comparative analysis over the last five years on the activity of Bucharest Stock Exchange compared to that of the major stock exchanges in Central and Eastern Europe, respectively, the Bulgarian Stock Exchange, the Bratislava Stock Exchange, the CEESEG Budapest Stock Exchange, the CEESEG Ljubljana Stock Exchange, the CEESEG Prague Stock Exchange and the Warsaw Stock Exchange. Thus, through a correlated interpretation of both the evolution of the main stock marke...

13 CFR 120.471 - What are the minimum capital requirements for SBLCs?

Science.gov (United States)

2010-01-01

...) Additional paid-in capital representing amounts paid for stock in excess of the par value; (4) Retained earnings of the business; and/or (5) For limited liability companies and limited partnerships, capital...

Emerging Forms of Cultural Capital

DEFF Research Database (Denmark)

Prieur, Annick; Savage, Mike

2013-01-01

This paper takes stock of recent research on patterns of cultural engagement in various European nations, with specific reference to British and Danish research. It argues that Bourdieu's original theorisation of cultural capital in ‘Distinction’ needs to be significantly updated to register...

Capital market efficiency III

Directory of Open Access Journals (Sweden)

Pantelić Svetlana

2015-01-01

Full Text Available In 2013 the Nobel Prize in Economic Sciences was awarded to the American economists, Eugene Fama, Lars Peter Hansen and Robert Shiller. The monetarists, Fama and Hansen, from the University of Chicago, and the Neo- Keynesian, Shiller, from the Yale University, according to the Swedish Royal Academy, won this prestigious prize for their research providing mathematical and economic models to determine (irregularities in the stock value trends at the stock exchanges. With his colleagues, in the 1960s Fama established that, in the short term, it is extremely difficult to forecast stock prices, given that new information gets embedded in the prices rather quickly. Shiller, however, determined that, although it is almost impossible to predict the stock prices for a period of few days, this is not true for a period of several years. He discovered that the stock prices fluctuate much more substantially than corporation dividents, and that the relationship between prices and dividends tends to decline when high, and to grow when low. This pattern does not apply only to stocks, but also to bonds and other forms of capital.

HOW PERFORMANCE OF JAKARTA ISLAMIC INDEX (JII STOCKS RELATIVE TO OTHER STOCKS?

Directory of Open Access Journals (Sweden)

Erna Listyaningsih

2015-09-01

Full Text Available This study was conducted to assess the performance of Jakarta Islamic Index (JII stocks and also investigate whether there was an ethical effect (JII selection restriction and compare it with non-Sharia stocks. The main model used in this study was the Capital Asset Pricing Model (CAPM single index model extended to the Fama and French three factors. This study employs elaborate matching data. The data used in this study was split into two periods: the 2005-2007 periods which consists of two groups: JII and non-JII and the 2008-2012 periods which consists of three groups: JII, Sharia and non-Sharia based on industry sector. This study found that basically there was no difference on performance between JII and non-JII stocks. Therefore, this result supports the previous studies in which there were no significant differences between Sharia and conventional investment.

PENGARUH MODAL INTELEKTUAL TERHADAP MANAJEMEN LABA RIIL DAN FUTURE STOCK RETURNS

Directory of Open Access Journals (Sweden)

Tendy Wato

2017-02-01

Full Text Available This study aims to examine the influence of Intellectual Capital (IC on Real Earnings Management (MR and  Future Stock Returns (FSR in the manufacturing companies listed in Indonesia Stock Exchange (IDX.  The data used was obtained using multiple  regression of 27 companies manufacturing for the period 2007 to 2013. Model IC using VAICTM of Pulic (2000, Model Manajemen Laba Riil (MR of Roychowdhury (2006 and the FSR of Sloan (1996. Model analysis of the test data is performed by Multiple Regression. The results showed a partial effect on the IC to MR- PROD, MR-DISX and MR-CFO. IC has affect the FSR significantly. The overall results of this study support the theory resourced-based and knowledge-based. Research of Intellectual Capital (IC is a new one in Indonesia, so that the data associated with the IC is still difficult to obtain. Also there is no official standard referenced in particular the Financial Accounting Standards (IFRSs Indonesia in calculating the IC. The paper shows that intellectual capital is an important element affecting the future stock returns with real earnings management as intervening. The paper’s finding suggest that it is necessary to improve the transparency of the accounting information, so as to reduce  real earnings management,  especially in cash flow operation and improve earnings quality to some extent, which provides valuable reference for the company’s decision. This paper extends prior research by addressing the potential effects of IC on future stock returns with real earnings management as intervening.  The findings reported in this paper provide novel insights to the empirical financial accounting literature. Keyword: Intellectual  capital, real earning management, future stock returns.

Working Capital Approaches and Firm’s Returns in Pakistan

OpenAIRE

Dr. Talat Afza; Mian Sajid Nazir

2008-01-01

This study investigates the relationship between the aggressive/conservative working capital policies for seventeen industrial groups of public limited companies listed at Karachi Stock Exchange for a period of 1998-2003. The ordinary least square regression model has been used to investigate into the relationship of working capital approaches and the returns of firms. The study found significant differences among their working capital investment and financing policies across different indust...

The Asymmetric Impulse of the Sunshine Effect on Stock Returns and Volatilities

OpenAIRE

Yuan-Ming Lee; Kuan-Min Wang

2010-01-01

This study constructs a variety of GARCH models with the consideration of the generalized error distribution to analyze the relationship between the cloud cover and stock returns in Taiwan in the whole sample period (1986 to 2007) and in the two sub-sample periods (1986 to 1996 and 1997 to 2007). The data include Taiwan Stock Exchange Capitalization Weighted Stock Index and the U.S. Dow Jones Industrial Average index to proxy the impact of U.S. stock market on Taiwan’s stock market performanc...

12 CFR 1229.11 - Capital restoration plans.

Science.gov (United States)

2010-01-01

... that the Bank will make to member stock purchase requirements, to assure that it will become adequately... meeting specific goals and benchmarks and taking other actions described in the proposed capital...

Auditor Tenure and Stock Price Volatility: TheModerating Role of Auditor Industry Specialization

Directory of Open Access Journals (Sweden)

Mehran Jorjani

2018-04-01

Full Text Available Purpose The present study aims to investigate the relationship between auditor tenure and stock return volatility and to study the moderating effect of auditor’s industry specialization on this relationship in the firms listed on the Tehran Stock Exchange (TSE. Design/methodology/approach A sample of 95 companies listed on the Tehran Stock Exchange during the period 2011 to 2015 was selected and two hypotheses were formulated and analyzed using multivariate regression and econometric models. Findings The results of the study indicate that with the increase of auditor tenure, the volatility of stock returns is reduced. However, the results showed that the use of auditors specializing in the client's industry does not affect the relationship between the length of auditor tenure and the volatility of stock returns. Originality/value The findings of current study not only extend the extant theoretical literature concerning the stock price volatility in developing countries including emerging capital market of Iran, but also help investors, capital market and audit profession regulators to make informed decisions.

Analysis of stock investment selection based on CAPM using covariance and genetic algorithm approach

Science.gov (United States)

Sukono; Susanti, D.; Najmia, M.; Lesmana, E.; Napitupulu, H.; Supian, S.; Putra, A. S.

2018-03-01

Investment is one of the economic growth factors of countries, especially in Indonesia. Stocks is a form of investment, which is liquid. In determining the stock investment decisions which need to be considered by investors is to choose stocks that can generate maximum returns with a minimum risk level. Therefore, we need to know how to allocate the capital which may give the optimal benefit. This study discusses the issue of stock investment based on CAPM which is estimated using covariance and Genetic Algorithm approach. It is assumed that the stocks analyzed follow the CAPM model. To do the estimation of beta parameter on CAPM equation is done by two approach, first is to be represented by covariance approach, and second with genetic algorithm optimization. As a numerical illustration, in this paper analyzed ten stocks traded on the capital market in Indonesia. The results of the analysis show that estimation of beta parameters using covariance and genetic algorithm approach, give the same decision, that is, six underpriced stocks with buying decision, and four overpriced stocks with a sales decision. Based on the analysis, it can be concluded that the results can be used as a consideration for investors buying six under-priced stocks, and selling four overpriced stocks.

The Differences Cost of Equity Capital between Before and After Adoption of IFRS

Directory of Open Access Journals (Sweden)

I Putu Sugiartha Sanjaya

2017-11-01

Full Text Available The objective of this study was to analyze and compare between cost of equity capital between before and after adoption of IFRS on Statement of Financial Accounting Standard Financial Instrument (PSAK for banking companies listed in Indonesian Stock Exchange. The period on this study was 2008-2009 for before adoption and 2013-2014 for after adoption. Data on this study was secondary data such as annual financial reporting and share price. Cost of equity capital was measured using Ohlson Model. Sample in this study was banking companies listed in Indonesian Stock Exchange in 2008, 2009, 2013, and 2014. Selecting sample was by purposive sampling with specific criteria. Results of this study proved that cost of equity capital was lower for after adoption of IFRS on Statement of Financial Accounting Standard Financial Instrument for banking companies listed in Indonesian Stock Exchange than before adoption. It meant that adoption IFRS could reduce cost of equity capital. This result had an impact on reducing non performing loan, increasing loan to deposit ratio, and increasing net interest margin.

Corruption and stock market development: A quantitative approach

Science.gov (United States)

Bolgorian, Meysam

2011-11-01

Studying the relation between corruption and economic factors and examining its consequences for economic development have attracted many economists and physicists in recent years. The purpose of this paper is to focus on the role of stock market development on corruption. Analyzing a data set of corruption and stock market development measures such as market capitalization and total value of share trading for 46 countries around the world for the period 2007-2009, we examine the dependence of the Corruption Perception Index (CPI) on stock market development. Our findings suggest that there exists a power-law dependence between corruption and stock market development. We also observe a negative relation between level of corruption and financial system improvement.

Interdependencies Between the Capital Market and the Monetary Policy Decisions

Directory of Open Access Journals (Sweden)

Claudia Guni

2010-12-01

Full Text Available The declared scope of this work is to highlight the main correlations between the monetary and the capital market, including identifying the adequate objective of monetary policy which might positively influence over the offer on the capital market. The main target of the monetary market consists in the stability of the prices. The link between monetary policy and stock market is extremely important. The stock prices are sensible to economical conditions. Moreover, these prices rapidly change, thus there is a chance for a deviation from the fundamental value, with side-effects for economy.

26 CFR 1.162-19 - Capital contributions to Federal National Mortgage Association.

Science.gov (United States)

2010-04-01

... issuance price (the amount of capital contributions evidenced by a share of stock) over the fair market... sale to FNMA of mortgage paper gives rise to the issuance of a share of FNMA stock during a taxable... gain or loss from the sale to FNMA of mortgage paper, with respect to which a share of FNMA stock is...

Pengaruh Intellectual Capital Terhadap Produktivitas, Profitabilitas, Nilai Pasar Pada Perusahaan Manufaktur Di Bursa Efek Indonesia

Directory of Open Access Journals (Sweden)

Eva Wany

2010-10-01

Full Text Available The research to testing and analysis the influence of intellectual capital to productivity, profitability, market value, to testing and analysis the influence of intellectual capital to market value with productivity as intervening variable, to testing and analysis the influence of intellectual capital to market value with profitability as intervening variable of manufacture company listed in Indonesia Stock Exchange. The sample of this study consists of 48 financial company listed in Indonesia Stock Exchange in period 2005-2007. The research data is analysis by using descriptive technique and tested by using using multiple regression analysis. Result of test of simple linier regression model proves that intellectual capital influence does not productivity, intellectual capital influence to profitability, intellectual capital influence to market value, intellectual capital influence to market value with productivity as intervening variable but direct influence productivity don't overweening influence to market value, intellectual capital influence to market value with profitability as intervening variable and direct influence profitability to market value statistically proven signifikan.

Rental prices, rates of return, capital aggregation and productivity : Evidence from EU and US

NARCIS (Netherlands)

Erumban, 27675

With the increasing importance of investment in information and communication technology, methods for measuring the contribution of capital to growth have re-assumed centre-stage in recent growth accounting literature. The importance of using capital service growth rates rather than capital stock

Debiasing the disposition effect by reducing the saliency of information about a stock's purchase price.

Science.gov (United States)

Frydman, Cary; Rangel, Antonio

2014-11-01

The disposition effect refers to the empirical fact that investors have a higher propensity to sell risky assets with capital gains compared to risky assets with capital losses, and it has been associated with low trading performance. We use a stock trading laboratory experiment to investigate if it is possible to reduce subjects' tendency to exhibit a disposition effect by making information about a stock's purchase price, and thus about capital gains and losses, less salient. We compare two experimental conditions: a high-saliency condition in which the purchase price of a stock is prominently displayed by the trading software, and a low-saliency condition in which it is not displayed at all. We find that individuals exhibit a disposition effect in the high-saliency condition, and that the effect is 25% smaller in the low-saliency condition. This suggests that it is possible to debias the disposition effect by reducing the saliency with which information about a stock's purchase price is displayed on financial statements and online trading platforms.

Capital budgeting practices in Indian companies

Directory of Open Access Journals (Sweden)

Roopali Batra

2017-03-01

Full Text Available The volatility of the global economy, changing business practices, and academic developments have created a need to re-examine Indian corporate capital budgeting practices. Our research is based on a sample of 77 Indian companies listed on the Bombay Stock Exchange. Results reveal that corporate practitioners largely follow the capital budgeting practices proposed by academic theory. Discounted cash flow techniques of net present value and internal rate of return and risk adjusted sensitivity analysis are most popular. Weighted average cost of capital as cost of capital is most favoured. Nevertheless, the theory-practice gap remains in adoption of specialised techniques of real options, modified internal rate of return (MIRR, and simulation. Non-financial criteria are also given due consideration in project selection.

Using the Stock Market to Teach Physics

Science.gov (United States)

Faux, David A.; Hearn, Stephen

2004-11-01

Students are interested in money. Personal finance is an important issue for most students, especially as they move into university education and take a greater control of their own finances. Many are also interested in stock markets and their ability to allow someone to make, and lose, large sums of money, with their interest fueled by the boom in technology-based stocks of 2000/2001 followed by their subsequent dramatic collapse and the publicizing of so-called "rogue-traders." There is also a much greater ownership of stocks by families following public offerings, stock-based savings products, and the ability to trade stocks online. Consequently, there has been a steady growth of finance and finance-related courses available within degree programs in response to the student demand, with many students motivated by the huge salaries commanded by those with a successful career in the financial sector. We report here details of a joint project between Charterhouse School and the University of Surrey designed to exploit the excitement of finance to teach elements of the high school (age 16-18) curriculum through modeling and simulation.

Financial Development and the Sensitivity of Stock Markets to External Influences

OpenAIRE

Dellas, Harris; Hess, Martin K.

2000-01-01

We investigate how the relative contribution of external factors to stock price movements varies with the degree of financial development. We find that financial development makes stock markets more susceptible to external influences (both financial and macroeconomic). Interestingly, this effect is present even after having accounted for capital controls and international trade effects.

Cross-sectional test of the Fama-French three-factor model: Evidence from Bangladesh stock market

Science.gov (United States)

Hasan, Md. Zobaer; Kamil, Anton Abdulbasah

2014-09-01

Stock market is an important part of a country's economy. It supports the country's economic development and progress by encouraging the efficiency and profitability of firms. This research was designed to examine the risk-return association of companies in the Dhaka Stock Exchange (DSE) market of Bangladesh by using the Fama-French three-factor model structure. The model is based on three factors, which are stock beta, SMB (difference in returns of the portfolio with small market capitalisation minus that with big market capitalisation) and HML (difference in returns of the portfolio with high book-to-market ratio minus that with low book-to-market ratio). This study focused on the DSE market as it is one of the frontier emerging stock markets of South Asia. For this study, monthly stock returns from 71 non-financial companies were used for the period of January 2002 to December 2011. DSI Index was used as a proxy for the market portfolio and Bangladesh government 3-Month T-bill rate was used as the proxy for the risk-free asset. It was found that large capital stocks outperform small capital stocks and stocks with lower book-to-market ratios outperform stocks with higher book-to-market ratios in the context of Bangladesh stock market.

Assessing the authority of political office-holders : The leadership capital index

NARCIS (Netherlands)

Bennister, Mark; t Hart, Paul; Worthy, Benjamin

2015-01-01

This article argues that the extent to which political office-holders can effectively attain and wield authority is a function of the stock of ‘leadership capital’. Drawing on the concept of political capital, the article defines leadership capital as aggregate authority composed of three

IMPACT OF ROMANIA'S INTEGRATION INTO EUROPEAN UNION ON THE CAPITAL MARKET IN ROMANIA

OpenAIRE

Leonardo Badea

2007-01-01

The present paper intends to study the development of the stock exchange market in Romania stating as marks, two simple things, namely: the progress of the stock exchange market before and after January 1, 2007, and also the progress of the stock exchange markets in the neighboring states after 2004. For this study, the mathematical calculus of the stock exchange index variation and the stock exchange capitalization is followed. The results have a direct link with the macroeconomic situation ...

CAPITAL INDUSTRY PRACTICE AND AGGRESSIVE CONSERVATIVE WORKING CAPITAL POLICIES IN NIGERIA

OpenAIRE

Rafiu Oyesola Salawu

2007-01-01

This study investigates fifteen diverse industrial groups over an extended period to establish the relationship between aggressive and conservative working capital practices. Data were sourced from the annual reports of the companies and the publications of Nigerian Stock Exchange. Descriptive statistics were used for analyzing the data collected. Results strongly show that firms in differing industries have significantly different current asset management policies. Additionally, the relative...

The National Housing Fund, Mortgage Finance and Capital Formation in Nigeria

Directory of Open Access Journals (Sweden)

ADETILOYE Kehinde Adekunle

2013-07-01

Full Text Available Mortgage financing is one of the ways by which housing stocks are added and capital formation takes place in an economy. This paper examined the impact of the National Housing Fund (NHF, a government agency, in the process of capital formation in Nigeria. The paper adopted some key variables among which are capital formation, lending rate and capital expenditure and the various aspects of mortgage loans in the economy. The paper employed the Two Stage Least Square (2SLS techniques to measure the impact of the various units. It discovers that the mortgage loan generally is significant and insurance companies advances for mortgage is also significant while the National Housing Fund (NHF is not significant. This is however due to many problems bedevilling the Fund. The paper recommends among others, the deepening of the mortgage finance market, further assistance to the help to the National Housing Fund and while the government incentivises the firms involved in lending on mortgage fiscally to improve performance and capital stocks in the economy.

Stock Analysis of S.C. ROPHARMA S.A. the Example of Romanian Pharmaceutical Entity

Directory of Open Access Journals (Sweden)

Mihaela-Cristina ONICA

2011-11-01

Full Text Available Stock performance analysis can not find a better place than after presentation of earnings per share, the latter being one of the indicators on the performance of companies listed on capital markets. Exchange rates are considered final term market performance of listed companies since they incorporate information concerning stock, but also financial and accounting data on the net result for the year, sales per share, dividend per share, book value per share, etc. Stock rate of action is the barometer of a company's overall performance, officially recognized by the public through the capital market. But changes in stock price is determined by the evolution of economic and financial results of the enterprise, but also investors' expectations about the possibilities of its development, progress and prospects the industry in which company operates, and national and international economic trends.

Exploring the Relationship between Human Capital Investment and Corporate Financial Performance of Jordanian Industrial Sectors

Directory of Open Access Journals (Sweden)

Faris Nasif ALSHUBIRI

2013-12-01

Full Text Available The revolution of globalization, computerization and information technology has entered to Jordanian market. This phenomenon requires company's attention of human element and the acquired knowledge, experience and the development of the so-called concept of intellectual capital.(IC In this study I used only the human capital as a part of IC. This study aims to exploring the relationship between human capital investment (HCI, and corporate financial performance. This study used an 11 industrial sectors listed of Amman Stock Exchange from 2005to 2011. Correlation analysis tests used in this study and the results indicate the high positive significant relationship between HCI and corporate financial performance related to, ROE , PTBV , log of sales , log of assets , DPS and ICR but no significant relationship between HCI and WCTO. The researcher recommends industrial companies to strengthen and stimulate the concept of human capital in the companies and the need for develop administrative innovation program. For future analysis may be used more sectors listed in market in addition used the all parts of intellectual capital related to structural and physical capital with corporate financial performance.

47 CFR 32.4520 - Additional paid-in capital.

Science.gov (United States)

2010-10-01

... SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS COMPANIES Instructions for Balance Sheet Accounts § 32.4520... includable in Account 4510, Capital Stock, unless such difference results in a debit balance for that class...

The role of social capital in the relationship between physical constraint and mental distress in older adults: a latent interaction model.

Science.gov (United States)

An, Sok; Jang, Yuri

2018-02-01

Building upon the widely known link between physical and mental health, the present study explored the buffering effects of social capital (indicated by social cohesion, social ties, and safety) in the relationship between physical constraint (indicated by chronic conditions and functional disability) and mental distress (indicated by symptoms of depression and anxiety). Using data from 2,264 community-dwelling older adults in the National Social Life, Health, and Aging Project (NSHAP) Wave 2 (M age = 74.51, SD = 6.67), a latent interaction model was tested. The model of mental distress, including both the main effect of physical constraint and social capital and their latent interaction, presented an excellent fit. The latent constructs of physical constraint (β = .54, p social capital (β = -.11, p interaction was also significant (β = -.26, p social capital had a heightened vulnerability to mental distress when faced with physical constraint, whereas the group with a high level of social capital demonstrated resilience. Findings call attention to ways to enhance older individuals' social capital in efforts to promote their health and well-being.

Bank stock returns, leverage and the business cycle

OpenAIRE

Jing Yang; Kostas Tsatsaronis

2012-01-01

The returns on bank stocks rise and fall with the business cycle, making bank equity financing cheaper in the boom and dearer during a recession. This provides support for prudential tools that give incentives for banks to build capital buffers at times when the cost of equity is lower. In addition, banks with higher leverage face a higher cost of equity, which suggests that higher capital ratios are associated with lower funding costs.

The implications of financial performance on stock exchange indicators of listed companies: empirical evidence for the Romanian capital market

Directory of Open Access Journals (Sweden)

Iulia-Oana ȘTEFAN(BELCIC-ȘTEFAN

2016-08-01

Full Text Available This paper examines and quantifies the implications of financial indicators of performance on the share return of companies listed on Bucharest Stock Exchange. These implications are even more relevant as the Romanian capital market could benefit from increased visibility with its reclassification as an emerging capital market in the near future. The research is conducted at the level of 33 companies listed on BSE for the time frame 2011-2013, building a multiple linear regression model that quantifies the variation in price to book value depending on the evolution of nine financial indicators of performance out of a total of 38 such possible indicators. Correcting the effects of serial correlation within the model led to its respecification resorting to the generalized differences procedure. The value of the R-squared coefficient of determination for the processed model is 0.543, eight of the nine independent variables being significant at the 1% level. The 0 probability associated to the F-test as well as its value confirm that the regression equation is globally significant. Also, all the assumptions for validating the estimated model are confirmed, both general ones, characteristic to the multiple linear regression procedure, and, in particular, according to the specific set of data under processing. The applied usefulness of the regression model is valued in the next step of the research, that of testing the effectiveness of the Romanian capital market, after which it was found that the influence of financial performance indicators was already incorporated into the market price since the end of the reporting period.

Modeling Chaotic Behavior of Chittagong Stock Indices

Directory of Open Access Journals (Sweden)

Shipra Banik

2012-01-01

Full Text Available Stock market prediction is an important area of financial forecasting, which attracts great interest to stock buyers and sellers, stock investors, policy makers, applied researchers, and many others who are involved in the capital market. In this paper, a comparative study has been conducted to predict stock index values using soft computing models and time series model. Paying attention to the applied econometric noises because our considered series are time series, we predict Chittagong stock indices for the period from January 1, 2005 to May 5, 2011. We have used well-known models such as, the genetic algorithm (GA model and the adaptive network fuzzy integrated system (ANFIS model as soft computing forecasting models. Very widely used forecasting models in applied time series econometrics, namely, the generalized autoregressive conditional heteroscedastic (GARCH model is considered as time series model. Our findings have revealed that the use of soft computing models is more successful than the considered time series model.

What's your real cost of capital?

Science.gov (United States)

McNulty, James J; Yeh, Tony D; Schulze, William S; Lubatkin, Michael H

2002-10-01

In valuing any investment project or corporate acquisition, executives must decide what discount rate to use in their estimates of future cash flows. The traditional approach is to apply the capital asset pricing model (CAPM), which has remained fundamentally unchanged for 40 years. But the formula--in particular, its beta element--has long been a source of frustration. In fact, corporate executives and investment bankers routinely fudge their CAPM estimates, say the authors, because experience and intuition tell them the model produces inappropriate discount rates. CAPM has three main problems: First, beta is a measure of both a stock's correlation and its volatility; second, beta is based on historical data; and third, CAPM rates don't take into account the term of the investment. These factors together result in discount rates that defy common sense. As an alternative to CAPM and its beta element, the authors developed a forward-looking approach to calculating a company's cost of capital, the market-derived capital pricing model (MCPM). It does not incorporate any measure of historical stock-to-market correlation, relying instead on estimates of future volatility derived from the options market. This is helpful since investor expectations from the options market are built into a company's current stock price. Using GE as an example, the authors give step-by-step instructions for how to calculate discount rates with MCPM. They also offer evidence from a range of industries to show that MCPM's discount rates are more realistic--especially from the corporate investor's perspective--than are CAPM's.

Crime(expropriation) and the existence of multiple equlibria in capital accumulation

DEFF Research Database (Denmark)

Sørensen, Jan

on an assumption on an exogenous discount rate. In this paper I will ask, what will happen, if we assume, that people which are poor, have a higher incentive to expropriate, from the capital base, which we confusingly sometimes call a crime and other times call income distribution. The effect on the capital stock...... is more or less the same (assuming away any relevant discussion of public goods). The main thesis in this paper is that an weak central planner, which is unable to set a high enough punishment (higher than a natural rate), in turn would be “rewarded” by a higher risk premium, which in turn would hurt...... the capital stock, lower income, and therefore turn the incentives to “steal” even higher. The negative forces could become so strong, that it is able to overwhelmed the forces from the Inada condition, meaning that the return of capital becomes higher and higher. Then a society is on the path to destruction...

Earnings announcements and the variability of stock returns

OpenAIRE

Eilifsen, Aasmund; Knivsflå, Kjell Henry; Sættem, Frode

1999-01-01

This paper is concerned with the dissemination process of firm-specific annual earnings information in the Norwegian capital market. We find a significant reduction in stock price volatility in the post-announcement period relative to the pre-announcement period for companies traded on the Oslo Stock Exchange in the period 1990-1995. Potential explanations for this phenomenon are tested by relating the observed return volatility to changes in the volatility of the underlying business, the spe...

Comparative Analysis of Investment Funds Stocks-based Portfolios and BET Stocks-based Portfolios

Directory of Open Access Journals (Sweden)

Ion STANCU

2010-04-01

Full Text Available In this paper we intend to find out what is the best choice of stocks-based portfolio. The major goal is to find whether is more efficient to invest the whole capital in a single sector, like financial investments, or to create a diversified portfolio, taking into account assets from various economic sectors. Capital allocation will be based on the concept of cointegration. We have chosen this method because it can be applied on non-stationary data series, and, besides, it has the advantage of using the whole set of information provided by the financial assets. Another goal is to study how the portfolio structure adjusts if a shock occurs during the period under analysis so that to preserve a certain return or minimize a potential loss. The study will result in an investment solution in the Romanian capital market, even in the context of financial crisis.

The Educational Asset Market: A Finance Perspective on Human Capital Investment

DEFF Research Database (Denmark)

Christiansen, Charlotte; Nielsen, Helena Skyt

2002-01-01

on type and level of education enables us to focus on the shared features between human capital and stock investments. An innovative finance-labor approach is applied to study the educational asset market. A risk-return trade-off is revealed which is not directly related to the length of education.......Like the stock market, the human capital market consists of a wide range of assets, i.e. educations. Each young individual chooses the educational asset that matches his preferred combination of risk and return in terms of future income. A unique register-based data set with exact information...

Forward-looking disclosure and corporate reputation as mechanisms to reduce stock return volatility

Directory of Open Access Journals (Sweden)

Francisco Bravo

2016-01-01

Full Text Available The purpose of this paper is to investigate whether forward-looking disclosures and corporate reputation lead to a reduction in stock return volatility. This study measures financial forward-looking information, by conducting a content analysis of annual reports for a sample of US companies. Since every annual report was manually examined and coded, the study is therefore restricted to the companies listed in Standard and Poor's 100. Results show that financial forward-looking information has significant effects on capital markets. This study contributes to the current literature on voluntary disclosure, by examining the link between the disclosure of financial forward-looking information and stock return volatility. Since stock volatility is linked to information asymmetries and to a higher risk of a company, this analysis implies certain practical implications for both managers and regulators regarding the importance of specific disclosure strategy in capital markets. Moreover, results indicate that forward-looking information disclosed by companies of a higher reputation has a greater effect on stock return volatility. This is the first study that demonstrates that corporate reputation moderates the effects of forward-looking information in capital markets. In addition to the level of disclosed information, the interpretation and the effectiveness of forward-looking information depends on the reputation of a company.

On the "essential condition" of intellectual capital: labour!

DEFF Research Database (Denmark)

O'Donnell, David; Tracey, Mairead; Henriksen, Lars Bo

2006-01-01

Following Marx and Engels' identification of the "essential condition of capital", the purpose of this paper is to begin an initial critical exploration of the essential condition of intellectual capital, particularly the ownership rights of labor. Adopting a critically modernist stance on unitar......, reducing reported accounting expense in order to boost reported earnings, deferring taxes, and attracting, retaining and exploiting key elements of labor....... on unitarist HR and OB discourse, and contextualized within a background on the stock option phenomenon and recent accounting regulation, the paper argues that the fundamental nature of capital-labor relation continues resiliently into the IC labor (intellectual capital-labor) relation. There is strong...

Intellectual capital disclosure and dividend policy

DEFF Research Database (Denmark)

Nielsen, Christian; Farooq, Omar

2015-01-01

The purpose of this article is to document the relationship between intellectual capital disclosure and dividend policies of biotechnology firms listed on the Copenhagen Stock Exchange during the period between 2001 and 2010. The firms’ intellectual capital disclosures were computed from the annual...... financial reports, while data on dividend policies was retrieved from Worldscope. This paper defines dividend policies by three variables: (1) Dividend payout ratio, (2) Decision to pay dividend, and (3) Increase in dividend payout. The results show that firms with higher intellectual capital disclosures...... not only have high payout ratios, but also have a greater likelihood of increasing and paying dividends. Our findings are consistent with our hypothesis that lower information asymmetries of firms with high intellectual capital disclosure lead to more favourable dividend policies. In opposition...

Cooperation, social capital and economic performance

Directory of Open Access Journals (Sweden)

Marcos Fernandes Gonçalves da Silva

2006-09-01

Full Text Available The objective of this paper is to define social capital as social infrastructure and to try to include this variable in an economic growth model. Considering social capital in such a way could have an impact on the productivity of production factors. Firstly, I will discuss how institutional variables can affect growth. Secondly, after analyzing several definitions of social capital, I will point out the benefits and problems of each one and will define social capital as social infrastructure, aiming to introduce this variable into an economic growth model. Finally, I will try to open the way for subsequent empirical studies, both in the area of measuring the stock of social infrastructure as well as those comparing economies, with the idea of showing the impact of social infrastructure on economic growth.

Do stock prices drive people crazy?

Science.gov (United States)

Lin, Chung-Liang; Chen, Chin-Shyan; Liu, Tsai-Ching

2015-03-01

This is the first research to examine a potential relation between stock market volatility and mental disorders. Using data on daily incidences of mental disorders in Taiwan over 4000 days from 1998 through 2009 to assess the time-series relation between stock price movements and mental disorders, we observe that stock price fluctuation clearly affects the hospitalization of mental disorders. We find that during a 12-year follow-up period, a low stock price index, a daily fall in the stock price index and consecutive daily falls in the stock price index are all associated with greater of mental disorders hospitalizations. A 1000-point fall in the TAIEX (Taiwan Stock Exchange Capitalization Weighted Stock Index) increases the number of daily mental disorders hospitalizations by 4.71%. A 1% fall in the TAIEX in one single day increases daily hospitalizations for mental disorders by 0.36%. When the stock price index falls one consecutive day, it causes a daily increase of approximately 0.32% hospitalizations due to mental disorders on that day. Stock price index is found to be significant for both gender and all age groups. In addition, daily change is significant for both gender and middle-age groups, whereas accumulated change is significant for males and people aged 45-64. Stockholdings can help people accumulate wealth, but they can also increase mental disorders hospitalizations. In other words, stock price fluctuations do drive people crazy. Published by Oxford University Press in association with The London School of Hygiene and Tropical Medicine © The Author 2014; all rights reserved.

Fuzzy C-Means Clustering Model Data Mining For Recognizing Stock Data Sampling Pattern

Directory of Open Access Journals (Sweden)

Sylvia Jane Annatje Sumarauw

2007-06-01

Full Text Available Abstract Capital market has been beneficial to companies and investor. For investors, the capital market provides two economical advantages, namely deviden and capital gain, and a non-economical one that is a voting .} hare in Shareholders General Meeting. But, it can also penalize the share owners. In order to prevent them from the risk, the investors should predict the prospect of their companies. As a consequence of having an abstract commodity, the share quality will be determined by the validity of their company profile information. Any information of stock value fluctuation from Jakarta Stock Exchange can be a useful consideration and a good measurement for data analysis. In the context of preventing the shareholders from the risk, this research focuses on stock data sample category or stock data sample pattern by using Fuzzy c-Me, MS Clustering Model which providing any useful information jar the investors. lite research analyses stock data such as Individual Index, Volume and Amount on Property and Real Estate Emitter Group at Jakarta Stock Exchange from January 1 till December 31 of 204. 'he mining process follows Cross Industry Standard Process model for Data Mining (CRISP,. DM in the form of circle with these steps: Business Understanding, Data Understanding, Data Preparation, Modelling, Evaluation and Deployment. At this modelling process, the Fuzzy c-Means Clustering Model will be applied. Data Mining Fuzzy c-Means Clustering Model can analyze stock data in a big database with many complex variables especially for finding the data sample pattern, and then building Fuzzy Inference System for stimulating inputs to be outputs that based on Fuzzy Logic by recognising the pattern. Keywords: Data Mining, AUz..:y c-Means Clustering Model, Pattern Recognition

Capital structure and profitability. A case of JSE Listed Companies.

Directory of Open Access Journals (Sweden)

Faith Mashavave

2015-03-01

Full Text Available The research aims to find out the relationship between capital structure and profitability focusing on firms listed on the Johannesburg stock exchange in South Africa. Past research on this topic excluded the Johannesburg Stock Exchange listed firms. The research results will be useful to the business people in South Africa because it will be more in line with the South African economic status and thus relevant. From the graphs and tables of the companies analyzed, it appears there is no relationship between the capital structure and profitability. The fluctuations in the debt/equity ratio and profitability ratio are so severe to such an extent that no meaningful conclusion regarding the relationship between capital structure and profitability can be made. The outcomes are haphazard there is no uniformity and consistence on the outcomes. Other hindrances to the relationship between capital structure and profitability were also discovered and these were attributed to the environmental factors of the company such as economic, political, and social and all other external forces that companies under study were exposed to.

Stock prices forecasting based on wavelet neural networks with PSO

Directory of Open Access Journals (Sweden)

Wang Kai-Cheng

2017-01-01

Full Text Available This research examines the forecasting performance of wavelet neural network (WNN model using published stock data obtained from Financial Times Stock Exchange (FTSE Taiwan Stock Exchange (TWSE 50 index, also known as Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX, hereinafter referred to as Taiwan 50. Our WNN model uses particle swarm optimization (PSO to choose the appropriate initial network values for different companies. The findings come with two advantages. First, the network initial values are automatically selected instead of being a constant. Second, threshold and training data percentage become constant values, because PSO assists with self-adjustment. We can achieve a success rate over 73% without the necessity to manually adjust parameter or create another math model.

Determinants Of Equity Prices In The Stock Market

Directory of Open Access Journals (Sweden)

Muhammad Usman Javaid

2010-12-01

Full Text Available This study examines the effect of market variables on the movement stock prices in Pakistan. Asset pricing is considered as efficient if the asset prices reflect all available market information. This study examined the extent to which some "information factors" or market indices affect the stock price. A simple regression model has been used to develop a relation between the variables (stock prices, earnings per share, gross domestic product, dividend, inflation and KIBOR after testing for multi-collinearity among the independent variables. All the variables have shown positive correlation with stock prices with some exceptions of GDP and inflation. This study has enriched the existing literature while it would help policy makers who are interested in deploying instruments of monetary policy and other economic indices for the growth of the capital market.

Cash management improvement in the Navy Stock Fund

OpenAIRE

Linquist, James E.; Evans, Timothy S.

1986-01-01

Approved for public release; distribution is unlimited The Navy Stock Fund (NSF) is a working capital fund used to purchase and hold designated inventories of supply items at various stock points until needed by a customer. The fund is currently comprised of ten separate Budget Projects with total collections and expenditures projected to be in excess of $ 1 8 bi 1 1 ion for Fiscal Year 1 986. The authors examined the background and current operation of the NSF with empha...

The Volatility of Indonesia Shari’ah Capital Market Stock Price Toward Macro Economics Variable

Directory of Open Access Journals (Sweden)

Helma Malini

2014-08-01

Full Text Available Shari’ah stock market is also affected by many highly interrelated economic, social, political andother factor, same as the conventional stock market, the interaction between macroeconomic variablesand Shari’ah stock market creating volatility in the stock price as a response towards severalshocks. The sensitivity of Shari’ah stock market towards shocks happened related with the futureexpectation of micro and macro factor in one country which can be predict or unpredictable.There are six macroeconomic variables that used in this research; inflation, exchange rate, interestrate, dow jones index, crude oil palm price, and FED rate. Using vector error correction model(VECM, the result shows that domestic macroeconomic variables that significantly affect IndonesiaShari’ah compliance for long term, while for international macroeconomic variables the selectedvariable such as FED rate and Dow Jones Index are not significantly affected Indonesia Shari’ahcompliance both in short term and long term. Keywords: Indonesia Shari’ah compliance, Macro Economic Indicators, Impulse Response Function,Stock Price Volatility

On the Feed-back Mechanism of Chinese Stock Markets

Science.gov (United States)

Lu, Shu Quan; Ito, Takao; Zhang, Jianbo

Feed-back models in the stock markets research imply an adjustment process toward investors' expectation for current information and past experiences. Error-correction and cointegration are often used to evaluate the long-run relation. The Efficient Capital Market Hypothesis, which had ignored the effect of the accumulation of information, cannot explain some anomalies such as bubbles and partial predictability in the stock markets. In order to investigate the feed-back mechanism and to determine an effective model, we use daily data of the stock index of two Chinese stock markets with the expectational model, which is one kind of geometric lag models. Tests and estimations of error-correction show that long-run equilibrium seems to be seldom achieved in Chinese stock markets. Our result clearly shows the common coefficient of expectations and fourth-order autoregressive disturbance exist in the two Chinese stock markets. Furthermore, we find the same coefficient of expectations has an autoregressive effect on disturbances in the two Chinese stock markets. Therefore the presence of such feed-back is also supported in Chinese stock markets.

Policy Impact on the Chinese Stock Market: From the 1994 Bailout Policies to the 2015 Shanghai-Hong Kong Stock Connect

Directory of Open Access Journals (Sweden)

Yang-Chao Wang

2017-01-01

Full Text Available From the 1994 bailout policies to the 2015 Shanghai-Hong Kong Stock Connect, the policy impact on the Chinese stock market has changed over time. By May 2015, global investors can directly invest in a more legalized and normalized Chinese stock market, whereas they are still concerned about the policy-oriented market and its attendant risks. In this study, we employ the family of GARCH models to investigate the structural changes in risks with the implementation of a series of policies. Our results show that although many policies improve or stabilize the stock market, certain policies lead to substantial volatility. Among them, macro-control policies and transaction cost adjustments are a double-edged sword, which should be used with caution. Furthermore, with opening-up policies being launched recently, the Chinese stock market has entered a new stage in which it affects international capital markets. However, the increased risks, which may result in a sharp turnaround, cause worry.

Notes on Economic Depreciation of Natural Resource Stocks and National Accounting

OpenAIRE

John W. Hartwick

1991-01-01

We consider numerous variations on the theme that stock diminution weighted by marginal rent should be netted from basic NNP to account for economic depreciation of natural stocks. Mineral discoveries, durable exhaustible resources, and mining pollution effects are examined. Capital appreciation from transforming land in virgin forest to land in agriculture is considered. Attention is paid to second best prices.

Investment Strategies of Different Holding Periods: Evidence from Stock Markets of Hong Kong, Korea, Shanghai, and Taiwan

OpenAIRE

Massoud Moslehpour; Munkh-Ulzii Batmunkh

2013-01-01

Although there is abundant research focusing on estimating the level of returns on stock market, there is a lack of studies examining the comparison of stock return movements for short-term and long-term investment in the Asian stock market. The present study examines return on investment of different holding periods among selected stock markets in Asia. Based on the trading performance of key indices and market capitalization value, Korean Stock Exchange (KRE), Shanghai Stock Exchange (SSE),...

Financial links between the stock market and the debt securities market

Directory of Open Access Journals (Sweden)

Francisco Eduardo de Luna e Almeida Santos

2008-07-01

Full Text Available The aim of this paper is to measure the endogenous relationship between stock and bond markets. To recover the structural form of this relationship, the author applied the method of identification through heteroskedasticity. Both coefficients were found to be negative which is consistent with the notion that, given an opportunity cost of capital, the returns move in opposite directions in order to promote the equilibrium of the capital flow. However, only the coefficient that measures the impact of bond market over stock markets was significantly different from zero. Thus, the intensity of this relationship also depends on the relative size of the markets under study.

Theoretical backgrounds of investigating of intellectual and human capital

Directory of Open Access Journals (Sweden)

Vladimir Nikiforovich Belkin

2011-03-01

Full Text Available This paper reviews the theoretical aspects of a company's intellectual capital. This capital consists of stock and movement of knowledge which is useful for organizing. There are three components of intellectual capital - human, social and organizational capital. The differences of intellectual and human capital are established. In particular, if human capital is characterized by mundane knowledge, the intellectual one - by the new, and if the products of human capital are the usual goods and services, the products of intellectual capital are the result of translating and implementing new knowledge. The coincidence of research subjects of the theory of intellectual capital and the theory of innovative enterprise development is shown. The concept of "intellectual potential of the enterprise" is introduced and the building structure is discussed. This potential consists of intellectual capital, patents and licenses unrealized by the enterprises, formalized ideas and hypotheses and undiscovered creative potential of the staff. Finally, a realization model of the intellectual potential of the company is proposed.

Factors explaining the level of voluntary human capital disclosure in the Brazilian capital market Factors explaining the level of voluntary human capital disclosure in the Brazilian capital market Factors explaining the level of voluntary human capital disclosure in the Brazilian capital market

OpenAIRE

Clea Beatriz Macagnan; Fernando Batista Fontana

2013-01-01

Purpose: This paper presents a study on factors explaining the level of voluntary human capital information in companies with shares in the Brazilian stock exchange. Assuming the existence of information asymmetry between managers and shareholders, agency theory states that disclosure might lead to a reduction in agency costs. The proprietary costs theory indicates that information disclosure might increase the company’s costs. According to these theories, the likelihood that the managers wil...

THE PROCESS OF EVALUATING PRIMARY FINANCIAL ASSETS ON THE CAPITAL MARKET

Directory of Open Access Journals (Sweden)

Ionel Eduard Ionescu

2013-12-01

Full Text Available The capital market is where supply meets demand and stocks, bonds, future contracts and other stock products are circulated. This study intends to argue for the importance of financial instruments on the capital market, and especially their evaluating process. On such a market, the moment when an investor decides to buy or sell a portfolio is very important. Hence the numerous questions that an investor is faced with: should I buy today? Should I wait? What will be the price trend the following days? In order to be able to handle any situation, it is necessary to carry out calculations on the evaluation indicators of financial instruments.

Stock Market Integration Measurement: Investigation of Malaysia and Singapore Stock Markets

OpenAIRE

B. K. Yeoh; Z. Arsad; C. W. Hooy

2010-01-01

This paper tests the level of market integration between Malaysia and Singapore stock markets with the world market. Kalman Filter (KF) methodology is used on the International Capital Asset Pricing Model (ICAPM) and the pricing errors estimated within the framework of ICAPM are used as a measure of market integration or segmentation. The advantage of the KF technique is that it allows for time-varying coefficients in estimating ICAPM and hence able to capture the varying degree of market int...

A Stock Trading Recommender System Based on Temporal Association Rule Mining

Directory of Open Access Journals (Sweden)

Binoy B. Nair

2015-04-01

Full Text Available Recommender systems capable of discovering patterns in stock price movements and generating stock recommendations based on the patterns thus discovered can significantly supplement the decision-making process of a stock trader. Such recommender systems are of great significance to a layperson who wishes to profit by stock trading even while not possessing the skill or expertise of a seasoned trader. A genetic algorithm optimized Symbolic Aggregate approXimation (SAX–Apriori based stock trading recommender system, which can mine temporal association rules from the stock price data set to generate stock trading recommendations, is presented in this article. The proposed system is validated on 12 different data sets. The results indicate that the proposed system significantly outperforms the passive buy-and-hold strategy, offering scope for a layperson to successfully invest in capital markets.

PEMILIHAN SAHAM YANG OPTIMAL MENGGUNAKAN CAPITAL ASSET PRICING MODEL (CAPM

Directory of Open Access Journals (Sweden)

Dioda Ardi Wibisono

2017-08-01

Full Text Available Optimal portfolio is the basis for investors to invest in stock. Capital Asset Pricing Model (CAPM is a method to determine the value of the risk and return of a company stock. This research uses a secondary data from the closing price of the monthly stock price (monthly closing price, Stock Price Index (SPI, and the monthly SBI rate. The samples of this research are 41 stocks in LQ45 February-July 2015 on the Indonesian Stock Exchange (ISE. The study period is during 5 year from October 2010 - October 2015. The result of analysis shows that the optimal portfolio consists of 18 companies. The average return of the optimal portfolio is higher than the average risk-free return (SBI rate and the average market return. This proves that investing in stocks is more profitable than a risk-free investment. � Keywords: Stock, CAPM, return, risk�

China’s Capital Market: its Structure and Characteristics

Directory of Open Access Journals (Sweden)

Ionela Bălțătescu

2010-10-01

Full Text Available The purpose of the present article is to briefly overview the main characteristics and structure of China’s capital market. The first part of the paper presents the main stock exchanges, futures exchanges and commodity exchanges of China, securities products available in China, China’s level of domestic market capitalization and other key financial information and statistics regarding China capital market. The second part of the paper contains a short review on the liberalization and reforms of China’s financial market, especially the programs QFII (Qualified Foreign Institutional Investor, QDII (Qualified Domestic Institutional Investor and mini-QFII.

Stock Market Volatility: Examining North America, Europe and Asia

OpenAIRE

Gamini Premaratne; Lakshmi Bala

2004-01-01

An understanding of volatility in stock markets is important for determining the cost of capital and for assessing investment and leverage decisions as volatility is synonymous with risk. Substantial changes in volatility of financial markets are capable of having significant negative effects on risk averse investors. Using daily returns from 1992 to 2002, we investigate volatility co-movement between the Singapore stock market and the markets of US, UK, Hong Kong and Japan. In order to gauge...

Working Capital Approaches and Firm’s Returns in Pakistan

Directory of Open Access Journals (Sweden)

Dr. Talat Afza

2008-09-01

Full Text Available This study investigates the relationship between the aggressive/conservative working capital policies for seventeen industrial groups of public limited companies listed at Karachi Stock Exchange for a period of 1998-2003. The ordinary least square regression model has been used to investigate into the relationship of working capital approaches and the returns of firms. The study found significant differences among their working capital investment and financing policies across different industries. Moreover, these significant differences are remarkably stable over the period of six years. The aggressive investment working capital policies are accompanied by aggressive working capital financing policies. Finally, we found a negative relationship between the profitability measures of firms and degree of aggressiveness of working capital investment and financing policies. The study would contribute a better understanding of working capital management policies in an emerging market like Pakistan.

Testing Commodities as Safe Haven and Hedging Instrument on ASEAN's Five Stock Markets

Directory of Open Access Journals (Sweden)

Robiyanto Robiyanto

2017-08-01

Full Text Available This study attempts to analyze commodity market instruments such as gold, silver, platinum, palladium, and West Texas Intermediate (WTI crude oil’s potential as hedge and safe haven toward some stock markets in South East Asia such as in Indonesia, Singapore, Malaysia, Philippines, and Thailand. To analyze the data, GARCH (1,1 was applied. The research findings showed that gold, silver, platinum, palladium, and WTI could not play their role as hedging instrument for five South East Asian capital markets. WTI could act as a robust safe haven for most South East Asian capital markets. Gold could do the role as a robust safe haven in Singapore and Malaysia, whereas, platinum and silver consistently could be safe haven only for Singapore Stock Exchange. Palladium could only be safe haven for Philippines Stock Exchange.

The technical analysis of the stock exchange and physics: Japanese candlesticks for solar activity

Science.gov (United States)

Dineva, C.; Atanasov, V.

2013-09-01

In this article, we use the Japanese candlesticks, a method popular in the technical analysis of the Stock/Forex markets and apply it to a variable in physics-the solar activity. This method is invented and used exclusively for economic analysis and its application to a physical problem produced unexpected results. We found that the Japanese candlesticks are convenient tool in the analysis of the variables in the physics of the Sun. Based on our observations, we differentiated a new cycle in the solar activity.

The contribution of public capital towards economic growth: A KwaZulu-Natal case study

Directory of Open Access Journals (Sweden)

Clive E. Coetzee

2017-04-01

Aim: The way provincial or regional growth depends on infrastructure is investigated in this article and it is applied to data from KwaZulu-Natal province, as an illustration. Setting: This study investigates the extent to which infrastructure in KwaZulu-Natal province in South Africa leads towards economic growth of the province. Methods: From a theoretical framework, this article develops an endogenous growth model, which investigates the association between provincial public capital stock expenditure and economic growth. Data series for public capital formation are first developed to apply in this study and others to follow. Econometric techniques are then employed, using quarterly data between 2001 and 2015, to assess the set hypothesis that growth in expenditure on public capital leads to national economic growth. Results: The empirical results support the argument of a positive relationship between provincial capital stock and economic growth in the long-term. The findings also suggests that the long-term causality or effect fades over time, albeit slowly. Conclusion: The nature and statistical significance of the long-term equilibrium relationship seems to be ambiguous at best. Some evidence of an equilibrium relationship in the short-term was, however, also observed. In conclusion, there also seems to be some causality between provincial capital stock and provincial gross domestic product in the short-run.

Stock Market Integration: Are Risk Premiums of International Assets Equal?

Directory of Open Access Journals (Sweden)

Kusdhianto Setiawan

2014-02-01

Full Text Available This paper studies previous research on capital market integration and applies a simple international capital asset pricing model by considering the incompleteness in market integration and heteroscedasticity of the market returns. When we disregarded those two factors, we found that stock markets were integrated and the law of one price on risk premiums prevails. However, when the factors were considered, the markets were just partially integrated.

Stock volatility as a risk factor for coronary heart disease death.

Science.gov (United States)

Ma, Wenjuan; Chen, Honglei; Jiang, Lili; Song, Guixiang; Kan, Haidong

2011-04-01

The volatility of financial markets may cause substantial emotional and physical stress among investors. We hypothesize that this may have adverse effects on cardiovascular health. The Chinese stock markets were extremely volatile between 2006 and 2008. We, therefore, examined the relationship between daily change of the Shanghai Stock Exchange (SSE) Composite Index (referred as the Index) and coronary heart disease (CHD) deaths from 1 January 2006 to 31 December 2008 in Shanghai, the financial capital of China. Daily death and stock performance data were collected from the Shanghai Center for Disease Control and Prevention and SSE, respectively. Data were analysed with over-dispersed generalized linear Poisson models, controlling for long-term and seasonal trends of CHD mortality, day of the week, Index closing value, weather conditions, and air pollution levels. We observed a U-shaped relationship between the Index change and CHD deaths: both rising and falling of the Index were associated with more deaths and the fewest deaths coincided with little or no change of the index. We also examined the absolute daily change of the Index in relation to CHD deaths: in a 1-day lag model, each 100-point change of the Index corresponded to 5.17% (95% confidence interval: 1.71, 8.63%) increase in CHD deaths. Further analysis showed that the association was stronger for out-of-hospital CHD death than for in-hospital death. We found that CHD deaths fluctuated with daily stock changes in Shanghai, suggesting that stock volatility may adversely affect cardiovascular health.

The Financial Indicators’ and Listed Company‘s Stock Price Link Determining the Value

Directory of Open Access Journals (Sweden)

Rima Tamošiūnienė

2016-06-01

Full Text Available The demand for value determination increased after rising of the Lithuanian economics. The joint-stock company value depends on the stock price and the company’s profit according to the “stock pricing for profit” method. The purpose of this scientific paper is the financial indicators’ and listed company’s stock price link determining the value. The analysis methods are: the research of scientific literature, data analysis, summarizing and graphic visualization. The link between financial indicators and the stock price is determined on the basis of correlation regression analysis. The analysis showed that listed on the stock exchange company’s stocks already have some value as they raise the capital. The research results revealed the stock price’s direct dependence on the fixed asset turnover and the debt-to-asset ratios.

Volatility of Capital Flows to Emerging Economies

Directory of Open Access Journals (Sweden)

Katia Rocha

2013-09-01

Full Text Available The paper proposes a panel model to the determinants of capital flow volatility to a group of 18 emerging market economies (EME in the period of 2000 to 2011. It studies the robustness of the model regarding different volatility measures; analyses several types of gross capital inflow; focusing the role of government institutional quality and the development of domestic financial system (banks, insurance companies, and capital markets – stocks, bonds and derivatives. The EME analyzed represented roughly 95% of the Emerging Markets Bond Index Global – EMBIG in January 2013, being the biggest destination to international capital flow to EME according to the report of the Bank for International Settlements - BIS (2009. The main conclusion suggests that a reduction of capital flow volatility can be achieved by the adoption of policies that improve government institutional quality and promote development, stability and efficiency of the domestic financial system.

An Analysis of Social Capital and Environmental Management of Higher Education Institutions

Science.gov (United States)

Evangelinos, Konstantinos I.; Jones, Nikoleta

2009-01-01

Purpose: The purpose of this paper is to analyse the importance of the theory of social capital for the challenges presented during environmental management initiatives in higher education institutions (HEIs). In particular, the paper utilises the fundamental components of social capital theory and assesses a hypothesis that higher stocks of…

Market capitalization of the trucking industry sector, 2005

Science.gov (United States)

2006-08-01

This report focuses on the market valuation of the overall trucking industry sector and each segment within it. In the past, while the focus has been on stock price appreciation or depreciation, this report emphasizes market capitalization returns. S...

Modeling the effects of urban expansion on natural capital stocks and ecosystem service flows: A case study in the Puget Sound, Washington, USA

Science.gov (United States)

Zank, Ben; Bagstad, Kenneth J.; Voigt, Brian; Villa, Ferdinando

2016-01-01

Urban expansion and its associated landscape modifications are important drivers of changes in ecosystem service (ES). This study examined the effects of two alternative land use-change development scenarios in the Puget Sound region of Washington State on natural capital stocks and ES flows. Land-use change model outputs served as inputs to five ES models developed using the Artificial Intelligence for Ecosystem Services (ARIES) platform. While natural capital stocks declined under managed (1.3–5.8%) and unmanaged (2.8–11.8%) development scenarios, ES flows increased by 18.5–56% and 23.2–55.7%, respectively. Human development of natural landscapes reduced their capacity for service provision, while simultaneously adding beneficiaries, particularly along the urban fringe. Using global and local Moran’s I, we identified three distinct patterns of change in ES due to projected landuse change. For services with location-dependent beneficiaries – open space proximity, viewsheds, and flood regulation – urbanization led to increased clustering and hot-spot intensities. ES flows were greatest in the managed land-use change scenario for open space proximity and flood regulation, and in the unmanaged land-use change scenario for viewsheds—a consequence of the differing ES flow mechanisms underpinning these services. We observed a third pattern – general declines in service provision – for carbon storage and sediment retention, where beneficiaries in our analysis were not location dependent. Contrary to past authors’ finding of ES declines under urbanization, a more nuanced analysis that maps and quantifies ES provision, beneficiaries, and flows better identifies gains and losses for specific ES beneficiaries as urban areas expand.

A study on the relationship between capital structure and the performance of production market: A case study of firms listed on Tehran Stock Exchange

Directory of Open Access Journals (Sweden)

Kobra Sadat Salek Esfahani

2013-04-01

Full Text Available One of the most complicated and challenging issues in today's financial managers is the relationship between the components of capital structure in terms of bonds and shares used for financing and share price of their company, and its effects on the macroeconomic variables. This research aims to study the relationship between the capital structure and performance of the production market in some firms listed on Tehran Stock Exchange (TSE. In this research, the index of capital structure is debt ratio and that of production market performance is sales growth and return of assets (ROA. The statistical sample of this research includes 128 companies, which have been active in 11 various industries and listed on TSE over the period 2005-2010. The statistical techniques used to test the hypotheses of this research include correlation coefficient and pooled least squares regression (panel data. Based on the results of our survey, there is a strong and significant relationship between debt ratio and return on assets among the companies listed on TSE and most industries especially based metals at the confidence level of 95%. In contrast, there is no strong and significant relationship between debt ratio and sales growth in the above-mentioned companies and in most industries.

Influence of External Factors on the Taiwan Stock Exchange

OpenAIRE

Chin-Wen Huang

2014-01-01

Due to the small market size and the low trading volume, emerging markets are, in general, shallow and easily affected by external factors such as the capital flows from foreign portfolio investment and the stock market fluctuations of their major trading partners. This study attempts to investigate how foreign portfolio investment and the trading partner’s equity market affect the local stock market and whether such impacts are persistent through time. Adopting the GARCH-EVT-Copula approac...

Does Automation Improve Stock Market Efficiency? Evidence from Ghana

OpenAIRE

Mensah, Justice T.; Pomaa-Berko, Maame; Adom, Philip Kofi

2012-01-01

As a burgeoning capital market in an emerging economy, automation of the stock market is regarded as a major step towards integrating the financial market as a conduit for economic growth. The automation of the Ghana Stock Exchange (GSE) in 2008 is expected among other things to improve the efficiency of the market. This paper therefore investigates the impact of the automation on the efficiency of the GSE within the framework of the weak-form Efficient Market Hypothesis (EMH) using daily mar...

Analisis Portofolio Menggunakan Capital Asset Pricing Model (Capm) Untuk Penetapan Kelompok Saham-saham Efisien (Studi Pada Seluruh Saham Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2010-2012)

OpenAIRE

Elvira, Nasika

2014-01-01

The objective of research is to explain the analysis against the performance of stocks of the companies listed in Indonesia Stock Exchange based on their return and risk, and to explain the analysis of the determination of efficient stock group based on Capital Asset Pricing Model (CAPM) over the stocks of the companies listed in Indonesia Stock Exchange for portfolio establishment in period 2010-2012. The USAge of Capital Asset Pricing Model (CAPM) in this research is that CAPM method can ex...

Statistical properties and pre-hit dynamics of price limit hits in the Chinese stock markets.

Science.gov (United States)

Wan, Yu-Lei; Xie, Wen-Jie; Gu, Gao-Feng; Jiang, Zhi-Qiang; Chen, Wei; Xiong, Xiong; Zhang, Wei; Zhou, Wei-Xing

2015-01-01

Price limit trading rules are adopted in some stock markets (especially emerging markets) trying to cool off traders' short-term trading mania on individual stocks and increase market efficiency. Under such a microstructure, stocks may hit their up-limits and down-limits from time to time. However, the behaviors of price limit hits are not well studied partially due to the fact that main stock markets such as the US markets and most European markets do not set price limits. Here, we perform detailed analyses of the high-frequency data of all A-share common stocks traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2000 to 2011 to investigate the statistical properties of price limit hits and the dynamical evolution of several important financial variables before stock price hits its limits. We compare the properties of up-limit hits and down-limit hits. We also divide the whole period into three bullish periods and three bearish periods to unveil possible differences during bullish and bearish market states. To uncover the impacts of stock capitalization on price limit hits, we partition all stocks into six portfolios according to their capitalizations on different trading days. We find that the price limit trading rule has a cooling-off effect (object to the magnet effect), indicating that the rule takes effect in the Chinese stock markets. We find that price continuation is much more likely to occur than price reversal on the next trading day after a limit-hitting day, especially for down-limit hits, which has potential practical values for market practitioners.

Testing the CAPM and Three Factors Model in China: Evidence from the Shanghai Stock Exchange

OpenAIRE

Wang, Weixi

2015-01-01

Since inception, China’s stock market has grown rapidly and has become one of the most important emerging markets in the world. However, many popular financial media depicts China’s stock market as irrational. Besides, empirical studies on asset pricing in China’s stock market do not provide a consistent conclusion for different periods. This study tests the Capital Asset Pricing Model (CAPM) and Fama-French Three Factors Model in Shanghai Stock Exchange, China. For validity test of the CAPM,...

Neighborhood social capital and infant physical abuse: a population-based study in Japan.

Science.gov (United States)

Fujiwara, Takeo; Yamaoka, Yui; Kawachi, Ichiro

2016-01-01

We sought to investigate the relationship between neighborhood social capital and infant physical abuse using a population-based sample of women with 4-month-old infants in Japan. A questionnaire was administered to women who participated in a 4-month health checkup program (n = 1277; valid response rate, 80 %). We inquired about their perceptions of the level of trust in their neighborhood (an indicator of "social capital") as well as the availability of support from their personal social networks. Infant physical abuse during the past month was assessed by self-reports of spanking, shaking or smothering. The prevalence of infant physical abuse at 4 months of age was 9.0 % (95 % confidence interval [CI], 7.6-10.7 %). Women living in trusting neighborhoods were less likely to report infant physical abuse compared to those living in areas with low neighborhood trust (odds ratio [OR] 0.25, 95 % CI 0.06-0.97). In addition, women with supportive social networks were less likely to report infant physical abuse (OR 0.59, 95 % CI 0.36-0.99). In addition to one's personal social network, social trust in the neighborhood was independently associated with lowered risk of infant physical abuse. To prevent infant abuse, interventions should consider strengthening community social bonds in addition to strengthening the social network of isolated mothers.

Marketing of green electrons. Solar-power stock exchanges

International Nuclear Information System (INIS)

Nussbaumer-Waelti, E.

1999-01-01

An independent power producer evaluates the current solar-power stock exchanges in Switzerland. Most stock exchanges have been created by electric utilities which want to deliver 'green' power to those of their clients asking for. A first group of solar-power stock exchanges offer to take over the produced solar power at a marginal price. Among them, some organise a competition between the potential solar-power producers, in order to press down the investment cost for the new photovoltaic plants to build. Other stock exchanges propose a periodical adaptation of the prices, especially an adaptation to the capital interest rate. For sure, the total length of the time period for which the contract is established is one of the decisive factors. Because no bank is ready to grant a credit for such an investment without having seen a long-running take-over contract for the produced power [de

Corporate campaign contributions and abnormal stock returns after presidential elections

OpenAIRE

Juergen Huber; Michael Kirchler

2008-01-01

In the U.S. campaign contributions by companies play a major role in financing election campaigns. We analyze contributions by companies before an election and stock market performance after the election for the presidential elections from 1992 until 2004. We find that (i) the percentage of contributions given to the winner in a presidential election and (ii) the total contribution (divided by market capitalization) have a significant positive impact on a company's stock market performance af...

On the Risk-Return Tradeoff in the Stock Exchange of Thailand: New Evidence

OpenAIRE

Jiranyakul, Komain

2011-01-01

This paper provides new evidence on the positive risk-return tradeoff in the Thai stock market using monthly data. An AR(p)-GARCH-in-mean model is applied to the data from January 1981 to December 2009. Since stock prices and dividend series are not cointegrated, the excess returns are separately calculated as capital gain and dividend excess returns. By incorporating the dummy variables that capture the impact of the 1987 global stock market crash and the Asian 1997 financial crisis in th...

Energy and the capital of nations

Science.gov (United States)

Karakatsanis, Georgios

2016-04-01

The economically useful time of fossil fuels in Earth is estimated in just ~160 years, while humanity itself counts ~150*103 years. Within only ~0,15% of this time, humanity has used more energy, accumulating so much wealth than within the rest of its existence time. According to this perspective, the availability of heat gradients is what fundamentally drives the evolution of economic systems, via the extensive enhancement -or even substitution- of human labor (Ayres and Warr 2009). In the modern industrial civilization it is estimated (Kümmel 2011) that the average human ability to generate wealth (productivity) has increased by ~40%-50% -including the effects from the growth of human population- further augmented by significant economies of scale achieved in the industrial era. This process led to significant accumulation of surpluses that generally have the form of capital. Although capital is frequently confused with the stock of mechanical equipment, capital can be generalized as any form of accumulated (not currently consumed) production factor that can deliver a benefit in the future. In that sense, capital is found in various forms, such as machinery, technology or natural resources and environmental capacities. While it is expected that anthropogenic forms of capital are accumulated along the increase of energy use, natural capital should be declining, due to the validity of the Second Law of Thermodynamics (2nd Law), entropy production and -in turn- the irreversible (monotonic) consumption of exergy (Wall 2005). Regressions of the LINear EXponential (LINEX) function (an economic growth function depending linearly on energy and exponentially on output elasticity quotients) (Lindenbeger and Kummel 2011) for a number of industrialized economies -like the USA, Germany and Japan, found that output elasticities were highest for energy (except for US where it was second highest after capital); meaning that in industrial economies, energy comprises the most

FAVAR Analysis of Foreign Investment with Capital Market Predictors: Evidence on Nigerian and Selected African Stock Exchanges

Directory of Open Access Journals (Sweden)

David Umoru

2018-03-01

Full Text Available Econometrically, we analyzed role of selected African stock exchanges in welcoming FDI inflows by estimating time-varying factor augmented vector auto-regression (FAVAR model for 2006:Q1 to 2017:Q4. Our results support FDI being massively influenced by movements in two stock market predictors namely, stock market's size, that is, total market value of stock market's listed shares calculated by multiplying a stock market’s shares listed by current market price of one share and stock market liquidity which is total value of traded shares relative to the size of the economy. By empirical inference, African stock exchanges exhibit inordinate turnover ratio and so these markets are exceedingly liquid. Particularly, transactions at stock exchange are significant indicators for foreign investors and total market value of listed shares in stock markets is linked positively with FDI inflow into Africa. The empirical finding is that viable African stock exchanges are attractive indicator of market concentration and high investment profile in Africa. The study so remarked the requisite to advance the stock exchange in order to boost funds accumulation for investment drive. Also, African governments should project and implement stock market-friendly procedures acceptable to maximize welfares of spillover effects of FDI.

Rules and Discretion in Monetary Policy: Is the Response of the Stock Market Rational?

Directory of Open Access Journals (Sweden)

Ion-Iulian MARINESCU

2015-04-01

Full Text Available We investigate the effects of the monetary policy conduct on the domestic capital market for a sample of developed countries where the capital market plays a significant role in the economy. We break down the policy rate innovations in rules-based and discretionary components in order to determine the degree of prudentiality in the monetary policy conduct and we study their accounts with respect to capital market rationality. The rules-based component is determined using an interpolated vanilla Taylor-rule policy rate at the event date and the discretionary component is obtained by subtracting the rules-based rate from the target monetary policy rate innovation. Using an event study approach, we analyze the impact of monetary policy components on the returns of the stock market and we determine that the conduct of the monetary policy can cause irrational responses of the capital market. More than that, we show, for the analyzed countries, that if the general level of discretion in the monetary policy is high the response of the stock market becomes increasingly erratic, indicating that forward guidance may help reduce uncertainty on capital markets.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI INTELLECTUAL CAPITAL DISCLOSURE(ICD

Directory of Open Access Journals (Sweden)

Thresya Stephani

2011-05-01

Full Text Available Increased attention regarding intellectual capital as a dominant factor in the growingcompetitiveness and strength of a firm has encouraged the organizations to disclose theirintellectual capital. This study aims to analyze the factors that affect the disclosure of intellectualcapital, namely firm size, firm age, leverage, profitability, and type of auditor in a firm. Thesamples used were secondary data from the Indonesia Stock Exchange (IDX Annual Report ofmanufacturing companies listed on the Stock Exchange in 2008-2010. Samples were taken witha purposive sampling method, and who meet the criteria for sample selection. This study usesMultiple Linear Regression Analysis, with t statistics test the hypothesis testing and statistical testF. The results showed that firm size, leverage, and type of auditor affect the intellectual capitaldisclosure(ICD. However, firm age and profitability has no effect on ICD

Dynamique jointe stock/option et application aux stratégies de trading sur options

OpenAIRE

El Aoud , Sofiene

2015-01-01

This thesis explores theoretically and empirically the implications of the stock/option joint dynamics on applications related to option trading. In the first part of the thesis, we look into the relations between stock options and index options under the risk-neutral measure. The Capital Asset Pricing Model offers an adequate mathematical framework for this study as it provides a modeling approach for the joint dynamics between the stock and the index. As we compute option prices according t...

Statistical Properties and Pre-Hit Dynamics of Price Limit Hits in the Chinese Stock Markets

Science.gov (United States)

Wan, Yu-Lei; Xie, Wen-Jie; Gu, Gao-Feng; Jiang, Zhi-Qiang; Chen, Wei; Xiong, Xiong; Zhang, Wei; Zhou, Wei-Xing

2015-01-01

Price limit trading rules are adopted in some stock markets (especially emerging markets) trying to cool off traders’ short-term trading mania on individual stocks and increase market efficiency. Under such a microstructure, stocks may hit their up-limits and down-limits from time to time. However, the behaviors of price limit hits are not well studied partially due to the fact that main stock markets such as the US markets and most European markets do not set price limits. Here, we perform detailed analyses of the high-frequency data of all A-share common stocks traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2000 to 2011 to investigate the statistical properties of price limit hits and the dynamical evolution of several important financial variables before stock price hits its limits. We compare the properties of up-limit hits and down-limit hits. We also divide the whole period into three bullish periods and three bearish periods to unveil possible differences during bullish and bearish market states. To uncover the impacts of stock capitalization on price limit hits, we partition all stocks into six portfolios according to their capitalizations on different trading days. We find that the price limit trading rule has a cooling-off effect (object to the magnet effect), indicating that the rule takes effect in the Chinese stock markets. We find that price continuation is much more likely to occur than price reversal on the next trading day after a limit-hitting day, especially for down-limit hits, which has potential practical values for market practitioners. PMID:25874716

ANALYSIS OF THE INDICATORS SPECIFIC TO ENTITIES LISTED ON THE CAPITAL MARKET AND THEIR ROLE IN QUANTIFYING COMPANY PERFORMANCE

Directory of Open Access Journals (Sweden)

Maria Daniela BONDOC

2014-06-01

Full Text Available The paper aims at presenting certain indicators specific to entities listed on the capital market and their analysis based on the financial statements of C.N.T.E.E. Transelectrica S.A., listed on the Bucharest Stock Exchange: growth stock exchange indices (market capitalization, earnings per share, price to book ratio, price to sales ratio, price earnings ratio, cash EPS and dividend stock exchange ratios (dividend per share, dividend yield, and dividend payout ratio. The research methodology involved studying the financial statements of the entity for the 2009-2013 period. The case study method was used to study the evolution of the stock exchange indices and opinions were formulated concerning the performance reflected by the analysed indices.

Monetary shocks and stock returns: identification through the impossible trinity

OpenAIRE

Ali K. Ozdagli; Yifan Yu

2012-01-01

This paper attempts to identify how monetary policy shocks affect stock prices by using Mundell and Fleming's theory of the "Impossible Trinity." According to this theory, it is impossible to simultaneously have a fixed exchange rate, free capital movement (an absence of capital controls), and an independent monetary policy. The authors present evidence that Hong Kong's monetary policy is heavily dependent on the monetary policy of the United States, a stance which is consistent with this the...

Operationalization of social capital in small societies

DEFF Research Database (Denmark)

Lauridsen Lolle, Elisabeth

2013-01-01

, and the inequalities between cities and rural areas are getting more pronounced. If Denmark is to keep its social capital and strengthen the regional development, we need to examine the condition of the social capital and find ways to maintain or maybe even strengthen its stock. However, it is difficult to measure...... by educational institutions as platforms for offering educations on different locations in the periphery. How do these new possibilities affect the social capital of small communities and thus the regional development? Does it enhance the sense of community cohesion, or is this just another way of communicating......? This article will examine these questions through three case studies covering the educational (schools) and cultural (museums) sector in different settings in rural Denmark....

THEORETICAL-METHODOLOGICAL IMPORTANCE OF INTERNATIONAL LISTING OF STOCKS FOR INVESTORS AND EMITENTS

Directory of Open Access Journals (Sweden)

I. Mazur

2018-03-01

Full Text Available In the conditions of globalization of the economic environment, the integration processes of the international capital markets are intensifying, which envisages the possibility of placing securities in foreign markets. This gives some benefits to national investors and issuers. These benefits include: scaling up the attraction of investors' financial resources; strengthening of the business reputation and issuer's credit rating; Successful placement of shares in the international market contributes to the increase of profits. International listing of shares increases the prestige and image of the issuer. The main motivation of most companies entering the foreign capital markets is only financial - they plan to increase their capital in the markets of highly developed countries and increase the liquidity of their shares. International listing provides new markets for more active securities that do not require detailed reporting and have significant liquidity. In some cases, the introduction of international listing increases the value of the company's shares. As a rule, this happens more often in the US, when the market value of shares is higher than that existing on the issuer's market. Moreover, the fact of an increase in the number of investors who buys company shares increases the liquidity of shares, narrowing the spread. That is, the main motive for stock quotes abroad is to increase the value of its capital and liquidity of shares, which will eventually give an opportunity to attract additional capital. All this contributes to the growth of the number of national companies that market their shares on foreign stock exchanges. Investigated double listingof shares of companies; discloses the conditions under which the international listing of shares of companies becomes one of the most appropriate ways of financing business; the influence of international listing of companies' shares on the liquidity of shares in the domestic market, increase

Descubrimiento de oportunidades empresariales: capital humano, capital social y género

Directory of Open Access Journals (Sweden)

Nuria González-Álvarez

2011-09-01

Full Text Available El objetivo de este trabajo es analizar cuáles son los factores que influyen sobre la segunda de las etapas del proceso de creación empresarial establecidas por Shane y Venkataraman (2000, es decir, sobre el descubrimiento de oportunidades de creación empresarial. Para ello, por un lado, se analiza la influencia que pudiera tener sobre esta etapa tanto el capital humano como el capital social. Por otra parte, también se pretende analizar la existencia de diferencias de género en el descubrimiento de oportunidades empresariales. Para ello, se utiliza una muestra de 28.888 individuos provenientes del Proyecto Gem (2009, que permite concluir que los individuos que poseen un mayor stock de capital humano, así como aquellos que están inmersos en amplias redes sociales, descubrirán más oportunidades de creación empresarial. asimismo, este trabajo muestra que existen diferencias de género en cuanto al descubrimiento de oportunidades de creación empresarial.

18 CFR 367.2040 - Account 204, Preferred stock issued.

Science.gov (United States)

2010-04-01

... GAS ACT Balance Sheet Chart of Accounts Proprietary Capital § 367.2040 Account 204, Preferred stock... REGULATORY COMMISSION, DEPARTMENT OF ENERGY REGULATIONS UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 2005, FEDERAL POWER ACT AND NATURAL GAS ACT UNIFORM SYSTEM OF ACCOUNTS FOR CENTRALIZED SERVICE COMPANIES SUBJECT...

18 CFR 367.2010 - Account 201, Common stock issued.

Science.gov (United States)

2010-04-01

... GAS ACT Balance Sheet Chart of Accounts Proprietary Capital § 367.2010 Account 201, Common stock... REGULATORY COMMISSION, DEPARTMENT OF ENERGY REGULATIONS UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 2005, FEDERAL POWER ACT AND NATURAL GAS ACT UNIFORM SYSTEM OF ACCOUNTS FOR CENTRALIZED SERVICE COMPANIES SUBJECT...

China's stock market integration with a leading power and a close neighbor

OpenAIRE

Yi, Zheng; Heng, Chen; Wong, Wing-keung

2009-01-01

Current integration and co-movement among international stock markets has been boosted by increased globalization of the world economy, and profit-chasing capital surfing across borders. With a reputation as the fastest growing economy in the world, China's stock market has continued gaining momentum during recent years and incurred growing attention from academicians, as well as practitioners. Taking into account economic and geographical considerations, the US and Hong Kong are considerably...

Do Colleges and Universities Increase Their Region's Human Capital? Staff Report No. 401

Science.gov (United States)

Abel, Jaison R.; Deitz, Richard

2009-01-01

We investigate whether the degree production and research and development (R&D) activities of colleges and universities are related to the amount and types of human capital present in the metropolitan areas where the institutions are located. We find that degree production has only a small positive relationship with local stocks of human capital,…

Features of the Institutional Structure of the Polish Stock Market under Conditions of Transformational Changes in the Global Financial Environment

Directory of Open Access Journals (Sweden)

Goncharenko Nataliia I.

2017-03-01

Full Text Available Under modern conditions of transformational changes in the global financial environment, the international stock market acquires stable features of activization of investment activity, formation of a large network of professional participants in the stock market and its multi-level institutional structure, expansion of the range of trade in securities, access of economic entities of different countries to financial resources and diversification of mechanisms of concentration, etc. There conducted a study of peculiarities of the institutional structure of the Polish stock market in the context of transformational changes in the global economic system. The factors influencing the volume of capitalization of the Warsaw Stock Exchange are analyzed; the dependence of the capitalization of the Exchange on foreign portfolio investments in shares of Polish issuers is revealed. Based on the results of own calculations of multiple correlation coefficients, the level of dependence between capital stock market indicators and assets of such financial institutions in Poland as investment and open pension funds, insurance companies is determined, and a significant interconnection of assets of investment and open pension funds and insurance companies is revealed. The obtained results can become a basis for institutional investors in the process of making effective decisions on expanding the range of trading in securities.

Hedge Fund Stock Trading in the Financial Crisis of 2007--2009

OpenAIRE

Itzhak Ben-David; Francesco Franzoni; Rabih Moussawi

2012-01-01

Hedge funds significantly reduced their equity holdings during the recent financial crisis. In 2008:Q3----Q4, hedge funds sold about 29% of their aggregate portfolio. Redemptions and margin calls were the primary drivers of selloffs. Consistent with forced deleveraging, the selloffs took place in volatile and liquid stocks. In comparison, redemptions and stock sales for mutual funds were not as severe. We show that hedge fund investors withdraw capital three times as intensely as mutual fund ...

INTERDEPENDENCE BETWEEN JAKARTA STOCK EXCHANGE AND OTHER PACIFIC-BASIN STOCK MARKETS

Directory of Open Access Journals (Sweden)

Noer Azam Achsani

2011-08-01

Full Text Available Normal 0 false false false MicrosoftInternetExplorer4 International capital markets linkages have been studied since early 90-es.  Most of these studies have mainly focused on the US and other developed markets. There were only a few researches on this topic in the emerging markets.  This paper examines the dynamic linkages among Indonesian and other Pacific-Basin stock markets using correlation analysis, Granger-causality and vector autoregressive (VAR approach. All the methods give generally similar results. Our empirical results indicate a high degree of international co-movement among the stock price indices.  The degree of integration among these markets after Asian Crisis increased substantially in compare to those before Asian Crisis. The results also show that there are close relationships among the geographically and economically closed markets such as ASEAN markets, New Zealand-Australian and also Hong Kong - South Korea.  The pattern of impulse-response functions illustrates a rapid transmission of stock market events. Shocks in the developed markets are immediately transmitted to other markets. Shocks in the emerging markets are also transmitted to other markets, but without such a big effect comparing to those in the developed markets. The Jakarta stock exchange is strongly correlated with other Pacific-Basin markets, especially with ASEAN markets, Hong Kong and Australia.   The strongest foreign effects for the JSX come from Singapore, Hong Kong and Thailand. They can explain about 5 – 8% of error variance of the Jakarta Index. In contrast, the JSX index can explain 3 - 5 % of their error variances. 

What Makes International Capital Flows So Volatile?: Push vs. Pull Factors in the Case of Korea

Directory of Open Access Journals (Sweden)

Tae-Joon Kim

2010-12-01

Full Text Available This paper analyzes the determinants of financial capital flows in Korea, which provides an intriguing case for examining the volatility of such flows as an almost fully opened capital market. Our empirical analysis finds both pull and push factors have significantly affected all three types of foreign capital flows- foreign equity investment, foreign bond investment and foreign other-type investment- in Korea, though the relative importance of each factor varies by sample period and type of financial capital. First, the determinants of capital inflows changed substantially following the 1997 currency crisis. The impact of push factors on foreign investment strengthened, rendering the Korean stock and bond market more susceptible to external shocks. Second, the global financial crisis, which increased global financial instability and preference for safe assets, appears to have had a negative effect on other-type investment. However, fThis paper analyzes the determinants of financial capital flows in Korea, which provides an intriguing case for examining the volatility of such flows as an almost fully opened capital market. Our empirical analysis finds both pull and push factors have significantly affected all three types of foreign capital flows- foreign equity investment, foreign bond investment and foreign other-type investment- in Korea, though the relative importance of each factor varies by sample period and type of financial capital. First, the determinants of capital inflows changed substantially following the 1997 currency crisis. The impact of push factors on foreign investment strengthened, rendering the Korean stock and bond market more susceptible to external shocks. Second, the global financial crisis, which increased global financial instability and preference for safe assets, appears to have had a negative effect on other-type investment. However, foreign equity investment showed a quick recovery in the wake of global financial

Cost of Capital Estimation for Highway Concessionaires in Chile

Directory of Open Access Journals (Sweden)

Cristian Vergara-Novoa

2018-01-01

Full Text Available In this paper, we present the cost of capital estimation for highway concessionaires in Chile. We estimated the cost of equity and the cost of debt and determined the capital structure for each one of twenty-four concessionaires that operate highways. We based our estimations on the developments of Sharpe (1964, Modigliani and Miller (1958, and Maquieira (2009, which were also compared with the Brusov et al. (2015 developments. We collected stock prices for different highway concessionaires around the world from Google Finance and Reuters’ websites in order to determine the Beta of equity using a representative company. After that, we estimated the cost of equity considering Hamada (1969 and a Capital Asset Pricing Model. Then, we estimated the cost of capital using the cost of debt and the capital structure of Chile’s highway concessionaires. With all above, we were able to determine the Weighted Average Cost of Capital (WACC for highway concessions which ranges from 5.49 to 6.62%.

PHYSICAL CAPITAL, HUMAN AND SOCIAL AND RESPONSIBILITY PUBLIC ACCOUNTANT WITH POVERTY

OpenAIRE

Wong Torres, Zelma; Salcedo Guzmán, Luisa Elena

2014-01-01

This article is the result of research carried out in 2010, entitled, physical capital, human and social, and social responsibility of the Certified Public Accountant with Poverty. This article seeks to demonstrate the interest in settlement mechanisms to achieve equity and achieve a development strategy. In this perspective, the article insisted that social policy should be able to influence the structural determinants through which reproduce poverty and inequality, maldistribution of educat...

Human Capital and Economic Growth : Operationalising Growth Theory, with Special Reference to the Netherlands in the 19th Century"

NARCIS (Netherlands)

Albers, Ronald

1997-01-01

This paper presents new estimates of the stock of human capital in the Netherlands between 1800 and 1913. The estimates of human capital are derived from data on primary, secondary and tertiary schooling. It is argued that the measure of human capital presented here is conceptually better than

Decision making under uncertainty in fisheries management: capital adjustment, fishermen behavior and stochasticity in fish stocks

NARCIS (Netherlands)

Dijk, van D.

2013-01-01

The world’s marine fisheries are characterized by declining global catch, an increasing number of overexploited stocks and high natural variability in fish stocks. Policy makers are becoming more aware that effective management systems have to be implemented to rebuild overexploited fish stocks. The

IMPACT OF CAPITAL STRUCTURE POLICY ON VALUE OF THE FIRM – A STUDY ON SOME SELECTED CORPORATE MANUFACTURING FIRMS UNDER DHAKA STOCK EXCHANGE

Directory of Open Access Journals (Sweden)

Jahirul HOQUE

2014-07-01

Full Text Available The study is about capital structure policy and its impacts on value of the firm. The outcome of this study was both the primary and secondary data. The study was based on opinions survey of 80 respondents of the 20 manufacturing corporate firms, enlisted under Dhaka Stock Exchange. The empirical analysis of the study was limited to a period of five years ranging 2008-2012. The major findings of the study are: (i the most important determinant of capital structure policy as rated by the respondents have been financial risk , profitability, availability of fund, productivity, liquidity, operating risk, growth rate, proper timing, corporate tax, stability of sales/ investment etc, (ii the study reveals that in terms of the average positions of capital structure and financial structure during 2008-2012, Beximco pharma has ranked first followed by Square pharma, Apex Adelchi, DESCO, ACI ltd, Titas gas, Bata shoe,Aftab automobile, Reneata pharma, Square textile ltd etc,(iii as regards the value of the firm during the study period, Titas gas has obtained first rank followed by Square pharma, DESCO, Beximco pharma, BATBC, ACI, Reneta pharma, Apex Tennary, Apex Adelchi, Bata shoe and so on.(iv this study has portrayed that the independent variables namely capital structure (CS, debt to equity (DER & debt to asset (DR, fixed assets to total assets(Tangibility, earnings before interest and taxes to interest charges(ICR, financial leverage multiplier(FLM have influenced value of the firm(VF to the extent of 79.1 percent significantly. Therefore, it is recommended that the relevant firm’s authority should take proper measures in order to improve the independent variables having positive influence on value of the firms.

Benchmarking a Transition Economy Capital Market

Directory of Open Access Journals (Sweden)

A. Keller

2007-09-01

Full Text Available As the centrally planned communist nations of Central Europe lacked liquid and efficient capital markets,financial systems architecture became instrumental to their transition into market economies. Now, afteralmost 17 years of operations, it is time to take a snapshot of one of these economies and compare it to a welldeveloped capital market. This study is the first to provide a quantifiable comparison of the quality of thecapital markets of a fully developed and a transition economy; namely Euronext France [Euronext] and theWarsaw Stock Exchange [WSE]. Using intraday data for the Euronext market and the WSE it is shown thatwhile overall liquidity is certainly much greater in Euronext, range based intra-day volatility is significantlylower in the WSE. For stocks with the highest market capitalisation the WSE has lower transaction costs inthe first [largest] decile than Euronext. These results indicate that while the established market is significantlymore liquid in terms of average trade size and trade numbers it does not always offer lower transaction costsor volatility. This is a new result as most contributions to the literature argue that an emerging market within atransition economy will suffer from excess volatility.

Pengaruh Pertumbuhan Penjualan, Likuiditas, Profitabilitas, dan Working Capital Terhadap Struktur Modal Pada Perusahaan Otomotif Dan Komponen yang Terdaftar Di Bursa Efek Indonesia (BEI) Tahun 2010-2013

OpenAIRE

Faisal, Aldi

2015-01-01

This study aimed to test whether the Growth of Sales, Liquidity, Profitability, and Working Capital has the effect of partially or simultaneously to Capital Stock in automotive and components companies listed in Indonesia Stock Exchange period 2010 to 2013. This research is a type of causal research, which used data from a population of 16 automotive and components companies listed in Indonesia Stock Exchange. The sampling method used in this research is purposive sampling and acquired co...

THE PAID-IN CAPITAL AS THE INDICATOR OF GOODWILL ASSESSMENT

Directory of Open Access Journals (Sweden)

Evgeni I. Ponomarev

2014-01-01

Full Text Available The article considers the problem of the goodwill assessment of joint-stock companies through the indicator of the paid-in capital. It allows to estimate and to forecast objectively the results and risks of investment activity.

Specific Human Capital as a Source of Superior Team Performance

OpenAIRE

Egon Franck; Stephan Nüesch; Jan Pieper

2009-01-01

In this paper, we empirically investigate the performance effect of team-specific human capital in highly interactive teams. Based on the tenets of the resource-based view of the firm and on the ideas of typical learning functions, we hypothesize that team members’ shared experience in working together positively impacts team performance, but at diminishing rates. Holding a team’s stock of general human capital and other potential drivers constant, we find support for this prediction. Implica...

Stock Price Reaction to Announcements of Right Issues and Debenture Issues: Evidence from Colombo Stock Exchange

Directory of Open Access Journals (Sweden)

Udani Chathurika Edirisinghe

2015-02-01

Full Text Available This study investigates the stock market reaction for right issues and debenture issues of Colombo Stock Exchange (CSE during the period of 2005 to 2011 while providing evidence for the research question “how do stock prices react to the debt and equity issue announcements of listed companies in CSE?” In investigating the ex-ante and ex-post market reactions the study employees event study methodology, while predicting abnormal returns, based on three alternative normal/expected returns modeling methods, namely Mean Adjusted Model, Market Adjusted Model, and Capital Asset Pricing Model. When testing the alternative hypothesis, whether stock prices significantly reacts to the announcement of right & debenture issues, results of all models show positive market reaction during the 30 days prior to the announcement and react negatively from 2 days after the announcements for right issues, but for debenture issues market reacted negatively during the period prior to debenture issues and continue to do the same during the post event period. Although the magnitude and significance of abnormal return generated through three alternatives methods differ, the pattern of the CAAR of all models are similar. Thus, as far as the speed of the price adjustment is concerned it seems that the CSE is not efficient.

Intangible Capital, Corporate Valuation and Asset Pricing

OpenAIRE

Danthine, Jean-Pierre; Jin, Xiangrong

2006-01-01

Recent studies have found unmeasured intangible capital to be large and important. In this paper we observe that by nature intangible capital is also very different from physical capital. We find it plausible to argue that the accumulation process for intangible capital differs significantly from the process by which physical capital accumulates. We study the implications of this hypothesis for rational firm valuation and asset pricing using a two-sector general equilibrium model. Our main fi...

DOES ECO-EFFICENCY REDUCE THE COST OF EQUITY CAPITAL? EMPIRICAL EVIDENCE FROM INDONESIA

OpenAIRE

Lisa Alviani; Mahfud Sholihin

2015-01-01

The objective of this study is to examine the effect of eco-efficiency on the cost of equity capital. The study hypothesizes that the implementation of eco-efficiency reduces the cost of equity capital. Using manufacturing companies listed on the Indonesian Stock Exchange for the period 2010-2012 as data, and controlling for beta, company size, Book to Market ratio, and leverage; the study finds that the implementation of eco-efficiency may reduce the cost of equity capital. The findings sugg...

Outlook '98 - Stock markets

International Nuclear Information System (INIS)

Vankka, D.

1998-01-01

In view of the recent drop of some 20 per cent in energy stock prices, and the decline in the value of the Canadian dollar, forecasting oilpatch financing in 1998 is a risky undertaking. Based on a variety of relevant factors, it is expected that there will be a slowdown in oil and gas financing deals in the short term. On the other hand, longer term outlook is bullish, based on the huge capital requirements over the next few years for conventional projects, heavy oil, oilsands and pipelines projects. Corporate mergers and acquisitions will continue at about the same rate as in 1997, as companies attempt to achieve ''economies of scale'' and growth in the most economically sensible manner. Adding production and reserves through corporate transactions at the current lower stock prices will be a powerful incentive. Creative deal structuring will become more prevalent. Corporate reorganizations into separate companies in search of value maximization will increase

Validating Virtual Safety Stock Effectiveness through Simulation

Directory of Open Access Journals (Sweden)

Maria Elena Nenni

2013-08-01

safety stock effectiveness through simulation in an inventory system using a base stock policy with periodic reviews and backorders. This approach can be useful for researchers as well as practitioners who want to model the behaviour of an inventory system under uncertain conditions and verify the opportunity for setting up a virtual safety stock on top of, or instead of, the traditional physical safety stock.

The Impact of Working Motivation and Working Environment on Employees Performance in Indonesia Stock Exchange

OpenAIRE

Riyanto, Setyo; Sutrisno, Ady; Ali, Hapzi

2017-01-01

In the face of the Asean economic community role of capital market demanded to be pro-active. The capital market expected to have contribution to the Indonesian economy by preparing regulations in accordance with the actual of economic conditions which would require of human resources who has a good performance at Indonesia stock exchange (IDX) as the regulator of capital market in Indonesia. This research aims to know the influence of working motivation toward employee performance at IDX, to...

A self-similar hierarchy of the Korean stock market

Science.gov (United States)

Lim, Gyuchang; Min, Seungsik; Yoo, Kun-Woo

2013-01-01

A scaling analysis is performed on market values of stocks listed on Korean stock exchanges such as the KOSPI and the KOSDAQ. Different from previous studies on price fluctuations, market capitalizations are dealt with in this work. First, we show that the sum of the two stock exchanges shows a clear rank-size distribution, i.e., the Zipf's law, just as each separate one does. Second, by abstracting Zipf's law as a γ-sequence, we define a self-similar hierarchy consisting of many levels, with the numbers of firms at each level forming a geometric sequence. We also use two exponential functions to describe the hierarchy and derive a scaling law from them. Lastly, we propose a self-similar hierarchical process and perform an empirical analysis on our data set. Based on our findings, we argue that all money invested in the stock market is distributed in a hierarchical way and that a slight difference exists between the two exchanges.

Integration of Capital Markets from Central and Eastern Europe: Implications for EU Investors

Directory of Open Access Journals (Sweden)

Alexandra HOROBET

2014-04-01

Full Text Available Our paper investigates the extent of capital market co-movements between three emerging markets Czech Republic, Hungary and Poland and three developed markets from the European Union – Austria, France and Germany. We test whether an increase in correlations between the six markets took place in recent years, as revealing higher integration of capital markets in the region. We find a statistically significant positive trend in cross-market correlations between 1999 and 2008, before the emergence of the global financial crisis. Movements in national stock markets are not fully synchronized, but increases in market volatilities lead to increases in cross-country correlations. There is a long-term relationship between some of these countries capital markets, and information is transmitted from one market to the other. Our findings confirm previous studies and lead to the conclusion that stock markets from Central and Eastern Europe became more integrated with the developed markets in European Union.

Managing soil natural capital

DEFF Research Database (Denmark)

Cong, Ronggang; Termansen, Mette; Brady, Mark

2017-01-01

Farmers are exposed to substantial weather and market related risks. Rational farmers seek to avoid large losses. Future climate change and energy price fluctuations therefore make adaptating to increased risks particularly important for them. Managing soil natural capital—the capacity of the soil...... to generate ecosystem services of benefit to farmers—has been proven to generate the double dividend: increasing farm profit and reducing associated risk. In this paper we explore whether managing soil natural capital has a third dividend: reducing the downside risk (increasing the positive skewness of profit......). This we refer to as the prudence effect which can be viewed as an adaptation strategy for dealing with future uncertainties through more prudent management of soil natural capital. We do this by developing a dynamic stochastic portfolio model to optimize the stock of soil natural capital—as indicated...

Corruption and Stock Market Development: New Evidence from GCC Countries

Directory of Open Access Journals (Sweden)

Moaz Alsherfawi Aljazaerli

2016-06-01

Full Text Available The theoretical relationship between corruption and stock market development has been debated quite extensively in the literature, yet the evidence on the impact of corruption on stock market development remains contradictory and ambiguous. This paper investigates the impact of corruption, as measured by Corruption Perception Index (CPI published by Transparency International, on stock market development focusing exclusively on Gulf Cooperation Council (GCC countries with its special characteristics of combining richness with relatively high level of corruption. Results from an estimation of alternative regression models on a panel of six GCC countries over the period 2003–2011, through which CPI is legitimately comparable, confirms a positive impact of corruption on stock market development, where the latter is measured by market capitalization. This is consistent with the view that corruption greases the wheels of economy by expediting transactions and allowing private firms to overcome governmentally imposed inefficiencies.

PORTFOLIO OPTIMIZATION ON CROATIAN CAPITAL MARKET

Directory of Open Access Journals (Sweden)

Sinisa Bogdan

2013-12-01

Full Text Available Purpose of this paper was to research portfolio optimization problem on Croatian capital market using Markowitz theory. Research systematically investigated the selection of securities, and defined the importance of using fundamental analysis when selecting the best combination of securities. Since fundamental analysis involves a large number of indicators, this paper selected key indicators that enable a complete and quick securities review on the market. This paper clarifies diversification effect and influence of the correlation coefficient on diversification. Two basic types of assets (stocks and cash funds have been chosen to build the optimal portfolio. Cash funds were selected because they represent a form of risk-free investment, while stocks were chosen because of the high level of return which they achieve. At the end of paper, optimal portfolio was calculated with an excellent yield of 1.82% and deviation of 5.77% on a monthly basis which corresponds to the minimum deviation of the selected stocks. Calculated optimal portfolio achieves better expected value than investing in stock index CROBEX, which for the same period achieves the expected result of -0.02%.

Renewable Resources, Capital Accumulation, and Economic Growth

OpenAIRE

Wei-Bin Zhang

2011-01-01

This paper proposes a dynamic economic model with physical capital and renewable resources. Different from most of the neoclassical growth models with renewable resources which are based on microeconomic foundation and neglect physical capital accumulation, this study proposes a growth model with dynamics of renewable resources and physical capital accumulation. The model is a synthesis of the neoclassical growth theory and the traditional dynamic models of renewable resources with an alterna...

Stock repurchase and Arab Spring empirical evidence from the MENA region

Directory of Open Access Journals (Sweden)

Foued Hamouda

2018-03-01

Full Text Available This paper examines how repurchase programs are used in the MENA region in the context of the political instability associated with the Arab Spring. We extend the knowledge regarding the relationship between stock repurchases and firm performance. We find that repurchase programs are used differently across countries. In fact, repurchases are negatively related to prior stock price performance. However, the market reacts more favorably to repurchases made by low market capitalization firms and by firms with high book-to-market ratio.

New variables for detecting transport disadvantages. The role of social capital

Energy Technology Data Exchange (ETDEWEB)

Ciommo, F. di

2016-07-01

This paper explores the potential role of social capital variables on the transport mode choice. Traditionally travel behavior model included social capital as empowerment factor (i.e. social capital as substitute of financial capital) or as social network influence on travel choice. Only recently constraints of social capital are considered as factors influencing travel behavior (Swanen et al, 2015, Di Ciommo & Martens, 2015).This article will show both aspects of empowerments and constraints of social capital in a dynamic way stressing two dynamic aspects of social capital: the building up social capital and use of social capital. Both aspects are related with the value of time: when you are doing something for others ( i.e. Voluntary actions, pick up all family members, etc) you are loosing your time, and your mode choice will be oriented to saving time, therefore a private mode will be chosen, while when you are using your social capital benefit (somebody else is helping you), you will easily choose the less flexible and more time consuming public transport. After defining social capital notion in both aspects of empowerments and constraints, a set of social capital variables is defined. Then two of these variables are tested through a smartphone short panel survey, where 100 individuals living or working in one surrounding southern area of Madrid have participated in entering their travel data for an entire working week. The estimated mixed-logit model that incorporated two “social capital variables: participation in voluntary activities and receiving help for various tasks (i.e. child care) show how people who have less social capital, but that are trying to build it up choose more private than public modes: building social capital stock has a cost in term of time that push people to use more flexible transport mode (i.e. private car), while people who have already a stock of social capital and can use it (i.e. helped people) receive time from others and

The impact of financial crisis on portuguese firms' capital structure

OpenAIRE

Lemos, Jéssica Andreia Rocha

2017-01-01

G01, G32 This study aims to verify the impacts of financial crises in the capital structure for Portuguese companies. The purpose is to study different firm-specific determinants of a sample of general PSI Portuguese listed firms at the Euronext Lisbon stock exchange, during the recent crises that endured from 2011 until 2013 and test the impacts on short and long-term debt. In order to test the changes/impacts on Portuguese firms’ capital structure, the most important theor...

Fuzzy time-series based on Fibonacci sequence for stock price forecasting

Science.gov (United States)

Chen, Tai-Liang; Cheng, Ching-Hsue; Jong Teoh, Hia

2007-07-01

Time-series models have been utilized to make reasonably accurate predictions in the areas of stock price movements, academic enrollments, weather, etc. For promoting the forecasting performance of fuzzy time-series models, this paper proposes a new model, which incorporates the concept of the Fibonacci sequence, the framework of Song and Chissom's model and the weighted method of Yu's model. This paper employs a 5-year period TSMC (Taiwan Semiconductor Manufacturing Company) stock price data and a 13-year period of TAIEX (Taiwan Stock Exchange Capitalization Weighted Stock Index) stock index data as experimental datasets. By comparing our forecasting performances with Chen's (Forecasting enrollments based on fuzzy time-series. Fuzzy Sets Syst. 81 (1996) 311-319), Yu's (Weighted fuzzy time-series models for TAIEX forecasting. Physica A 349 (2004) 609-624) and Huarng's (The application of neural networks to forecast fuzzy time series. Physica A 336 (2006) 481-491) models, we conclude that the proposed model surpasses in accuracy these conventional fuzzy time-series models.

Does Eco-efficency Reduce the Cost of Equity Capital? Empirical Evidence From Indonesia

OpenAIRE

Alviani, Lisa; Sholihin, Mahfud

2015-01-01

The objective of this study is to examine the effect of eco-efficiency on the cost of equity capital. The study hypothesizes that the implementation of eco-efficiency reduces the cost of equity capital. Using manufacturing companies listed on the Indonesian Stock Exchange for the period 2010-2012 as data, and controlling for beta, company size, Book to Market ratio, and leverage; the study finds that the implementation of eco-efficiency may reduce the cost of equity capital. The findings sugg...

Market Efficiency Analysis at the Stockholm Stock Exchange: Measuring Intraday Stock Price Performance around Interim Reports of the OMXS30 Large Cap Stocks - An Event Study Approach

OpenAIRE

Tames Blanco, Juan Marcelo; Nsiah, Samuel Osei

2010-01-01

The purpose of this thesis is to perform event studies that determine the level of efficiency of twenty-two large cap stocks from the OMXS30 Index. Under the event study methodology, analysts’ expectations, the standard Capital Asset Pricing Model and a set of parametric tests are implemented. As a result, significant evidence is found on the existence of intraday abnormal returns at the exact moment of an interim report publication. However, further evidence on market corrections state effic...

75 FR 16211 - MCG Capital Corporation; Notice of Application

Science.gov (United States)

2010-03-31

... SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 29191; File No. 812-13694] MCG Capital Corporation; Notice of Application March 25, 2010. AGENCY: Securities and Exchange... exchange on which its shares of common stock may be traded in the future) as of the date of the transaction...

MAPPING EUROPEAN CAPITAL MARKETS TENDENCIES

Directory of Open Access Journals (Sweden)

Andreea Avadanei

2011-01-01

Full Text Available The scope of this paper is to analyze the main tendencies influencing European capitalmarkets development. In order to point out their implications, we structured our study onfour chapters. The first one illustrates the consolidation of stock exchanges at the Europeanlevel; the seconds presents some considerations about the deregulation/re-regulation of EUcapital markets; the third section highlights the globalization implications on their evolutionand the fourth one indicates the effects of financial innovation. The progressive integrationof European capital markets over the past decade contributed to the lowering of capital costas a result of increased risk diversification opportunities and reduced transaction costs dueto the specialization of financial system provisions. Moreover, the expansion of thesemarkets improved firms financing decisions, leading to an increased share of non-bankfunding sources.

Pengaruh Intellectual Capital terhadap Market Value pada Perusahaan Telekomunikasi yang Terdaftar di Bursa Efek Indonesia Tahun 2006-2011

OpenAIRE

Psp, Doni Diwaf; Efni, Yulia; Wijaya, Errin Yani

2014-01-01

This study examined the effect of Intellectual Capital (IC) on financial performance. the variable is the Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Customer Capital Efficiency (CCE) to variable Market to Book Value (MB).The population on this research is the entire of telecommunications sector companies that have go public and listed on the Indonesia Stock Exchange (IDX) during the period of 2006-2011. The sampling technique used was a saturated sampling (census)...

Analysis of portfolio optimization with lot of stocks amount constraint: case study index LQ45

Science.gov (United States)

Chin, Liem; Chendra, Erwinna; Sukmana, Agus

2018-01-01

To form an optimum portfolio (in the sense of minimizing risk and / or maximizing return), the commonly used model is the mean-variance model of Markowitz. However, there is no amount of lots of stocks constraint. And, retail investors in Indonesia cannot do short selling. So, in this study we will develop an existing model by adding an amount of lot of stocks and short-selling constraints to get the minimum risk of portfolio with and without any target return. We will analyse the stocks listed in the LQ45 index based on the stock market capitalization. To perform this analysis, we will use Solver that available in Microsoft Excel.

Exploring futures from an energy perspective. A natural capital accounting model study into the long-term economic development potential of the Netherlands

International Nuclear Information System (INIS)

Noorman, K.J.

1995-01-01

The need to quantify economic activity in physical flows has been stressed several times elsewhere. To relate economic development with 'physical reality', in this thesis Resource Accounting (or Natural Capital Accounting) has been adopted as a method. This physical perspective on sustainable development has been made operational by designing an ECCO (Enhancement of Capital Creation Options) model for the Netherlands using energy as a physical numeraire. The purpose of the model is to investigate the long-term physical aspects of contemporary and future (economic or political) strategies to move the economy towards a more sustainable state and to explore the dynamics of such a process. Chapter 2 deals with the physical nature of economic processes and the fundamental role of thermodynamics in an economic system. Chapter 3 discusses the application of the ECCO paradigm within the context of Natural Capital Accounting methodology. Furthermore, the main structure of an ECCO model is presented. Chapter 4 elaborates on the Dutch model. Historical trends in direct energy use and the methodology of I-O analysis as well as the results of I-O analysis are presented in chapter 5. A method has been developed to estimate the primary energy captured in capital stocks in the diverse ECCO sectors. This method as well as the results, derived from applying this method, are presented in chapter 6. In chapter 7 the application of ECCO as a tool for assessing long term physical consequences of different development strategies is discussed. With respect to reducing the throughput of matter and energy, this study concentrates on energy conservation to reduce the demand for primary energy and the transition to a more sustainable energy supply sector by introducing renewable energy sources. figs., tabs., appendices, refs

The impact of foreign investors on the Serbian stock market

Directory of Open Access Journals (Sweden)

Rakočević Rade

2016-01-01

Full Text Available Frontier markets, such as Serbia, which are at the early stages of development, are characterized by very low level of solvency, absence of corporate management rules and reports to the public, insufficiently developed regulations, as well as significant participation of foreign portfolio investors in the exchange. Those are usually foreign investment funds specialized in risky investments at such markets; they apply the principle of geographic portfolio diversification in their investment policy. At the Belgrade Stock Exchange, foreign investors have been present at the stock market since 2002 and they participated in high volumes in stock buying during the stock market growth in the period from 2002 to 2007, whereas during the crisis at the Serbian capital market from 2008 to 2010 there was a significant increase in foreign investors' participation on the selling side and a withdrawal from the Belgrade Stock Exchange. Such behavior of foreign investors was initially prompted by local factors, but was intensified by the global financial crisis and will be analyzed in this paper.

Causalidade entre os retornos de mercados de capitais emergentes e desenvolvidos Causality between stock return rates: emerging versus developed capital markets

Directory of Open Access Journals (Sweden)

Wagner Moura Lamounier

2007-04-01

Full Text Available Utilizando-se de instrumentais estatísticos para a análise de séries temporais, procurou-se verificar as relações entre os retornos dos principais mercados de capitais emergentes e dos principais mercados desenvolvidos. A amostra foi divida em dois períodos: entre 1995-2002 e entre 2003-2005, tendo em vista os momentos distintos dos mercados quanto à vulnerabilidade externa. No primeiro momento, apesar das diversas crises econômicas, verificou-se que apenas o retorno do mercado emergente da Rússia sofreu grandes impactos ante os choques dos retornos dos outros mercados. Entre 2003-2005, no entanto, os retornos de outros mercados emergentes, como o do Brasil e o do México, responderam de forma significativa aos choques nos retornos dos demais mercados analisados.Using statistical instruments for the analysis of time series, - this work aims to verify the relation of returns of stock investments between the main emerging and the developed capital markets. The sample was divided in two periods: 1995-2002 and 2003-2005, in view of their different external vulnerability moments. At the beginning, - in spite of - several economic crises, only Russia’s stock market returns - suffered great impacts, compared with those at other markets’. Between 2003-2005, however, the returns of other emerging markets, as Brazil’s and Mexico’s, answered in a more significant form to the shocks in the returns of other markets.

Conference on EU Capital Markets Union: Contents and Discontents

NARCIS (Netherlands)

N. Dorn (Nicholas)

2015-01-01

markdownabstract__Abstract__ In February 2015 the Commission published its Green Paper on Capital Markets Union (CMU) and an Action Plan will follow later in 2015. The consultation period ends in May, so June/July is a good time to take stock. In terms of its intentions for market structure, CMU

An Analysis of Capital Control and Long Memory Effects in Bursa Malaysia Stock Exchange

OpenAIRE

Feng, Weishan

2006-01-01

On 1 September 1998, the Malaysian government imposed capital control to recover its economy from Asian financial crisis. This study examined the effect of capital control on Bursa Malaysia Main Board indices. It found the indices reacted quickly to reflect the effect of capital control announcement. The ARFIMA (p, d, q) model then was employed to examine the long memory effects in all indices during five different periods. It is found that long memory existed in Consumer Products Index, and ...

Value Investing in the Stock Market of Thailand

Directory of Open Access Journals (Sweden)

Gerardo “Gerry” Alfonso Perez

2017-11-01

Full Text Available Value investment and growth investment have attracted a large amount of research in recent decades, but most of this research focuses on the U.S. and Europe. This article covers the Thai stock market which has very different characteristics compared to western markets and even South East Asian countries such as Indonesia or Malaysia. Among South East Asian countries, Thailand has one of the most dynamic capital markets. In order to see if some well-known trends in other markets exist in Thailand the performance of value and growth stocks in the Thai market were analyzed for a period of 17 years using existing style indexes (MSCI as well as creating portfolios using individual stocks. For this entire period, when using the indexes, returns are statistically significant superior for value stocks compared to growth stocks. However, when analyzing the performance of the market in any given calendar year from 1999 to 2016, the results are much more mixed with in fact growth stocks outperforming in several of those years. Interestingly, when building portfolios using criteria such as low P/E or low P/B the results are not statistically different. Suggesting perhaps that the classification into value or growth stocks is more complex than it would appear. One of the common assumptions of value investing is that those stocks outperform over long periods of time. It might well be that in the Thai case one year is not a long enough period for value stocks to outperform. While there have been some clear efforts over recent years to modernize the stock market of Thailand, it remains relatively underdeveloped, particularly when compared to markets such as the U.S. Hence, its behavior regarding value versus growth investment might be rather different.

Hot money and China's stock market volatility: Further evidence using the GARCH-MIDAS model

Science.gov (United States)

Wei, Yu; Yu, Qianwen; Liu, Jing; Cao, Yang

2018-02-01

This paper investigates the influence of hot money on the return and volatility of the Chinese stock market using a nonlinear Granger causality test and a new GARCH-class model based on mixed data sampling regression (GARCH-MIDAS). The empirical results suggest that no linear or nonlinear causality exists between the growth rate of hot money and the Chinese stock market return, implying that the Chinese stock market is not driven by hot money and vice versa. However, hot money has a significant positive impact on the long-term volatility of the Chinese stock market. Furthermore, the dependence between the long-term volatility caused by hot money and the total volatility of the Chinese stock market is time-variant, indicating that huge volatilities in the stock market are not always triggered by international speculation capital flow and that Chinese authorities should further focus on more systemic reforms in the trading rules and on effectively regulating the stock market.

The Role of Classroom Teacher Social Capital in a Comprehensive School Physical Activity Program

Science.gov (United States)

Jordan, Michelle E.; Lorenz, Kent; Stylianou, Michalis; Kulinna, Pamela Hodges

2018-01-01

This study examined classroom teachers' involvement in a yearlong Comprehensive School Physical Activity Programs (CSPAP) implemented in one K-8 rural U.S. school district. Its purpose was to describe patterns of social interaction among teachers, administrators, and families associated with the intervention (i.e., social capital) and whether…

DOES ECO-EFFICENCY REDUCE THE COST OF EQUITY CAPITAL? EMPIRICAL EVIDENCE FROM INDONESIA

Directory of Open Access Journals (Sweden)

Lisa Alviani

2015-05-01

Full Text Available The objective of this study is to examine the effect of eco-efficiency on the cost of equity capital. The study hypothesizes that the implementation of eco-efficiency reduces the cost of equity capital. Using manufacturing companies listed on the Indonesian Stock Exchange for the period 2010-2012 as data, and controlling for beta, company size, Book to Market ratio, and leverage; the study finds that the implementation of eco-efficiency may reduce the cost of equity capital. The findings suggest that companies should implement eco-efficency.

Applying Moving Objects Patterns towards Estimating Future Stocks Direction

Directory of Open Access Journals (Sweden)

Galal Dahab

2016-01-01

Full Text Available Stock is gaining vast popularity as a strategic investment tool not just by investor bankers, but also by the average worker. Large capitals are being traded within the stock market all around the world, making its impact not only macro economically focused, but also greatly valued taking into consideration its direct social impact. As a result, almost 66% of all American citizens are striving in their respective fields every day, trying to come up with better ways to predict and find patterns in stocks that could enhance their estimation and visualization so as to have the opportunity to take better investment decisions. Given the amount of effort that has been put into enhancing stock prediction techniques, there is still a factor that is almost completely neglected when handling stocks. The factor that has been obsolete for so long is in fact the effect of a correlation existing between stocks of the same index or parent company. This paper proposes a distinct approach for studying the correlation between stocks that belong to the same index by modelling stocks as moving objects to be able to track their movements while considering their relationships. Furthermore, it studies one of the movement techniques applied to moving objects to predict stock movement. The results yielded that both the movement technique and correlation coefficient technique are consistent in directions, with minor variations in values. The variations are attributed to the fact that the movement technique takes into consideration the sibling relationship

Relationship between cost of equity capital and voluntary corporate disclosures

NARCIS (Netherlands)

Petrova, E.; Georgakopoulos, G.; Sotiropoulos, I.; Vasileiou, K.Z.

2012-01-01

The relationship between disclosure and cost of equity capital has always been interesting not only for managers, but for investors as well. Economic theory suggests that by increasing the level of corporate reporting firms not only increase their stock market liquidity, but they also decrease the

Factors explaining the level of voluntary human capital disclosure in the Brazilian capital market

Directory of Open Access Journals (Sweden)

Fernando Batista Fontana

2013-04-01

Full Text Available Purpose: This paper presents a study on factors explaining the level of voluntary human capital information in companies with shares in the Brazilian stock exchange. Assuming the existence of information asymmetry between managers and shareholders, agency theory states that disclosure might lead to a reduction in agency costs. The proprietary costs theory indicates that information disclosure might increase the company’s costs. According to these theories, the likelihood that the managers will voluntarily disclose information depends on certain factors that are characteristic of the company. Understanding the disclosure of information regarding intangible assets, specifically human capital, has strategic relevance for enterprises because these features, although not always recorded in accounting, represent a competitive business edge in the current economy.Design/methodology/approach: The study examined 145 annual reports, representing 29 companies in the period of 2005-2009. The level of voluntary disclosure was determined through content analysis of annual reports using representative indicators of human capital information.Findings: The statistical results indicate that factors such as size, debt, growth and time of registration with the brazilian Securities and Exchange Commission explain the level of voluntary human capital disclosure of the companies studied.Originality/value: An important contribution of this research is the formulation and non-repudiation of the time of registration with the CVM hypothesis as a factor that explains the level of human capital disclosure because none of the revised studies have tested this hypothesis.

THE SUCCESS OF EMERGING CAPITAL MARKETS IN DETERMINING ECONOMIC GROWTH

Directory of Open Access Journals (Sweden)

Ion POHOAŢĂ

2014-06-01

Full Text Available Capital markets are regarded as “the barometer” of economic activity at the national level, but among emerging markets, the position of this segment in the economy is far from ideal. The answers that we try to offer are concerning the contribution of capital markets to the economic welfare of nations in transition from Central and Eastern Europe, using Granger causality tests. Our findings highlight that in this geographical area, the relation between capital markets and economic growth is a bidirectional one. However, although both the establishment of stock exchanges and their liberalization represented governments’ strategy of economic development, their objective was not fully achieved. Institutional transformations are required in order to attract foreign investors.

Stock Market Capitalisation and Interest Rate in Nigeria: A Time ...

African Journals Online (AJOL)

Obviously for the Nigerian capital market to enhance economic growth and development and compare favourably with those of developed market economies, investors will need to be abreast with the happenings and great benefits of the stock market. In this case a lot depends on considerable control of the interest rate, the ...

Investigating the effects of liquidity and exchange rate on Tehran Stock Exchange

Directory of Open Access Journals (Sweden)

Younos Vakil Alroaia

2014-08-01

Full Text Available This paper presents an empirical investigation to study the effects of two macroeconomic factors; namely exchange rate and liquidity on stock index. The proposed study was applied in Iran and on major index of Tehran Stock Exchange over the period 2001-2011. They reported that the currency exchange maintained negative impact on stock exchange for the period of investigation. This is due to the fact that when currency devalued, working capital decreases and firms did not enough money to purchase raw materials, pay wages, etc. In addition, liquidity marinated a direct and positive relationship with exchange index. However, the impact of liquidity seems to be bigger than currency exchange.

The formation of joint-stock companies, its role in modern economic developments

OpenAIRE

Gafurova R.

2017-01-01

The Joint-stock Company is a form of economic activity of the organization, which its authorized capital is divided into some number of shares. Shares of JSC are issued by the company and assigned to its shareholders with certain rights, including the right for company management and receiving a part of the profit in the form of dividends of the company. The shareholder of the joint-stock company is an owner of company shares. In other words, shares are equity securities that assigned a share...

Pengaruh Pengungkapan Intellectual Capital (IC dan Economic Value Added (EVA terhadap Harga Saham Perusahaan Manufaktur yang terdaftar di BEI

Directory of Open Access Journals (Sweden)

Achmad Fauzi

2015-07-01

Full Text Available This study aims at finding out if The Influence of Intellectual Capital (ICand Economic Value Added (EVA on Stock Price of Manufacturing Companies listed on the Indonesia Stock Exchange (BEI in 2012. The hypothesis of this study is : There is Influence of Intellectual Capital (IC and Economic Value Added (EVA on Stock Price of Manufacturing Company listed on the Indonesia Stock Exchange (BEI in 2012. The method used is the author of the survey method with a quantitative approach . This study population is the entire manufacturing companies listed on the Stock Exchange in 2012 his sampling technique is random sampling as many as 36 samples .. Correlation Coefficient significance test ( Test A of 0.512 , indicating that there is a middle relationship between IC and EVA on Stock Price. The results of the coefficient of determination ( R2 Test stated that R2 is 0.262 or 26.2% . This shows that the percentage contribution of the effect of independent variables ( IC and EVA on the dependent variable ( stock price of 26.2 % . Or variations of the independent variables used in the model ( IC and EVA are able to explain 26.2% of variation in the dependent variable ( stock price . While the remaining 73.8 % are influenced or explained by other variables not included in this research model .

The Stock Market, Profit and Investment

OpenAIRE

Olivier Blanchard; Changyong Rhee; Lawrence Summers

1990-01-01

Should managers, when making investment decisions, follow the signals given by the stock market even if those do not coincide with their own assessments of fundamental value? This paper reviews the theoretical arguments and examines the empirical evidence, constructing and using a new US time series of data on the q ratio from 1900 to 1988. We decompose q - - the ratio of the market value of corporate capital to its replacement cost - - into the product of two terms, reflecting "fundamentals"...

Optimal Portfolio Selection in Ex Ante Stock Price Bubble and Furthermore Bubble Burst Scenario from Dhaka Stock Exchange with Relevance to Sharpe’s Single Index Model

Directory of Open Access Journals (Sweden)

Javed Bin Kamal

2012-09-01

Full Text Available The paper aims at constructing an optimal portfolio by applying Sharpe’s single index model of capital asset pricing in different scenarios, one is ex ante stock price bubble scenario and stock price bubble and bubble burst is second scenario. Here we considered beginning of year 2010 as rise of stock price bubble in Dhaka Stock Exchange. Hence period from 2005 -2009 is considered as ex ante stock price bubble period. Using DSI (All share price index in Dhaka Stock Exchange as market index and considering daily indices for the March 2005 to December 2009 period, the proposed method formulates a unique cut off point (cut off rate of return and selects stocks having excess of their expected return over risk-free rate of return surpassing this cut-off point. Here, risk free rate considered to be 8.5% per annum (Treasury bill rate in 2009. Percentage of an investment in each of the selected stocks is then decided on the basis of respective weights assigned to each stock depending on respective ‘β’ value, stock movement variance representing unsystematic risk, return on stock and risk free return vis-à-vis the cut off rate of return. Interestingly, most of the stocks selected turned out to be bank stocks. Again we went for single index model applied to same stocks those made to the optimum portfolio in ex ante stock price bubble scenario considering data for the period of January 2010 to June 2012. We found that all stocks failed to make the pass Single Index Model criteria i.e. excess return over beta must be higher than the risk free rate. Here for the period of 2010 to 2012, the risk free rate considered to be 11.5 % per annum (Treasury bill rate during 2012.

Using the Idea of Market-Expected Return Rates on Invested Capital in the Verification of Conformity of Market Evaluation of Stock-Listed Companies with their Intrinsic Value

Directory of Open Access Journals (Sweden)

Paweł Mielcarz

2012-12-01

Full Text Available This article presents the concept of investor-expected rates of return on capital of listed companies and the use of these rates in the assessment of the extent to which the stock evaluation of a given entity is compatible with its intrinsic value. The article also features results of the research aimed at verification – with the use of the presented tool – of whether the market value of WSE-listed companies reflects their fundamental value. The calculations presented in the empirical part of the article show that at the beginning of 2011, market evaluation of the most of the analysed entities greatly exceeded their fundamental value.

Capital Requirements, Monetary Policy, and Aggregate Bank Lending: Theory and Empirical Evidence.

OpenAIRE

Thakor, Anjan V

1996-01-01

Capital requirements linked solely to credit risk are shown to increase equilibrium credit rationing and lower aggregate lending. The model predicts that the bank's decision to lend will cause an abnormal run-up in the borrower's stock price and that this reaction will be greater the more capital-constrained the bank. The author provides empirical support for this prediction. The model explains the recent inability of the Federal Reserve to stimulate bank lending by increasing the money suppl...

Inventory Optimization through Safety Stock Schemata

Directory of Open Access Journals (Sweden)

Abdul Aleem

2013-04-01

Full Text Available In the complex business environment and stiff competition, inventory optimization in an industry's supply chain has gained tremendous significance. It has become business imperative to optimally tune the supply chain and save lot of working capital by reducing inventory levels; this can surely be done while increasing the customer service level and utilizing the internal capacities optimally. Stock out costs and stock surplus costs both impact businesses badly, the former in the form of opportunity loss and resultantly causing customer annoyance and later in high financial markups and increasing cost and reducing margins accordingly. So inventory optimization can essentially help to reduce costs, which results in a considerable improvement of the company performance indicators. Traditional IMS (Inventory Management System followed in a selected manufacturing industry has been examined for all types of inventories, i.e. raw materials; WIP (Work In Process, and finished goods as a case study. The paper suggests an optimized inventory model for an organization to provide the best possible customer service within the restraint of the lowest practical inventory costs. The safety stock optimization was implemented in a complex business environment and considerable savings were realized thereof

Sustainability of the use of natural capital in a city: Measuring the size and depth of urban ecological and water footprints.

Science.gov (United States)

Fang, Kai; Zhang, Qifeng; Yu, Huajun; Wang, Yutao; Dong, Liang; Shi, Lei

2018-08-01

The Sustainable Development Goals (SDGs) are limited in their ability to measure progress towards environmental sustainability especially at the city level. The aim of this paper is to provide insights into an integrated assessment of urban sustainability, with emphasis on the significance of the maintenance of natural capital stocks. The use of water and land as critical natural capital in Guiyang, a southeast city in China was investigated by bringing together the ecological footprint (EF), water footprint (WF) and corresponding capacity indicators into an improved three-dimensional (i3D) model. Results showed that Guiyang has long been operating in a state of overshoot due to shortage of annual natural capital flows and accumulated depletion of stocks. This is particularly true for land use, whose stocks maintained a relatively stable level of depletion between 2000 and 2014. As of 2014, an EF depth of 6.45 was accumulated. With respect to water use, a shift in the city's role from creditor to debtor was observed in 2004. Industrial use of natural capital has more than tripled over the past 15 years and replaced agriculture to be the main driver of water unsustainability. Overall, Guiyang's economic growth did not show signs of decoupling from the EF and WF. These findings highlight the need for effective policies that would help Guiyang reduce dependency on the use of critical natural capital. Finally, this paper provided an in-depth discussion of the methodological strengths and limitations of the i3D model and concluded that it is able to track the structural and characteristic dynamics of both flows and stocks while avoiding burden shifting across various components within single forms of natural capital from a strong sustainability perspective. Our study enhances understanding of the critical role of natural capital in ensuring urban sustainability and improving human welfare in connection with SDGs. Copyright © 2018 Elsevier B.V. All rights reserved.

Capital Structure Analysis Of EBX Group’s Companies: Combining Theory And Practice

Directory of Open Access Journals (Sweden)

Matheus da Costa Gomes

2017-12-01

Full Text Available According to market timing theory, companies tend to issue stocks or debts in order to exploit the opportunity window and this behavior is a significant determinant for capital structure. Based on this assertion and recent evidence found in the Brazilian market, this paper has the objective of analyzing the market timing behavior of the six publicly-traded companies in BM&FBOVESPA of the EBX Group (MPX, MMX, OXX, LLX, OSX and CCX, until mid-2013. For this purpose, the methodology used was a case study and as the main source of evidence indicators related to capital structure and stock market. An econometric approach to panel data has also been inserted to strengthen analyzes. The results show that the financial decisions made by managers of the EBX Group indicate attempts to exploit the opportunity windows related to the stock market, mainly measured by Shiller's price-to-earnings ratio (Shiller PE, an aggregate market index, as well as the market-to-book (M/B ratio of each company analyzed. This paper contributes to the discussion of market timing in Brazil, combining theory and practice in an intuitive and dynamic way bringing aspects related to companies and market conditions.

Eugene F. Fama: Nobel prize for 2013: Capital market efficiency

Directory of Open Access Journals (Sweden)

Pantelić Svetlana

2015-01-01

Full Text Available In 2013 the Nobel Prize in Economic Sciences was awarded to the American economists, Eugene Fama, Lars Peter Hansen and Robert Shiller. The monetarists, Fama and Hansen, from the University of Chicago, and the Neo- Keynesian, Shiller, from the Yale University, according to the Swedish Royal Academy, won this prestigious prize for their research providing mathematical and economic models to determine (irregularities in the stock value trends at the stock exchanges. With his colleagues, in the 1960s Fama established that, in the short term, it is extremely difficult to forecast stock prices, given that new information gets embedded in the prices rather quickly. Shiller, however, determined that, although it is almost impossible to predict the stock prices for a period of few days, this is not true for a period of several years. He discovered that the stock prices fluctuate much more substantially than corporation dividents, and that the relationship between prices and dividends tends to decline when high, and to grow when low. This pattern does not apply only to stocks, but also to bonds and other forms of capital.

Robert J. Shiller: Nobel prize for 2013: Capital market efficiency

Directory of Open Access Journals (Sweden)

Pantelić Svetlana

2015-01-01

Full Text Available In 2013 the Nobel Prize in Economic Sciences was awarded to the American economists, Eugene Fama, Lars Peter Hansen and Robert Shiller. The monetarists, Fama and Hansen, from the University of Chicago, and the Neo- Keynesian, Shiller, from the Yale University, according to the Swedish Royal Academy, won this prestigious prize for their research providing mathematical and economic models to determine (irregularities in the stock value trends at the stock exchanges. With his colleagues, in the 1960s Fama established that, in the short term, it is extremely difficult to forecast stock prices, given that new information gets embedded in the prices rather quickly. Shiller, however, determined that, although it is almost impossible to predict the stock prices for a period of few days, this is not true for a period of several years. He discovered that the stock prices fluctuate much more substantially than corporation dividents, and that the relationship between prices and dividends tends to decline when high, and to grow when low. This pattern does not apply only to stocks, but also to bonds and other forms of capital.

An application to measure impact of working capital management on profitability in firms in manufacture sector quoted on ISE

OpenAIRE

Akbulut, Ramazan

2011-01-01

The purpose of this study is to investigate the relationship between working capital management and firm profitability of corporations in manufacture sector which are listed in İstanbul Stock Exchange for the period of 2000-2008. Working capital management is important part in firm financial management decision. The ability of the firm to continuously operate in longer period depends on how they deal with investment in working capital management. The optimal of working capital management coul...

PENGARUH KOMPONEN WORKING CAPITAL TERHADAP PROFITABILITAS PERUSAHAAN

Directory of Open Access Journals (Sweden)

Anggita Langgeng Wijaya

2012-03-01

Full Text Available Penelitian ini menguji efek komponen modal kerja terhadap profitabilitas  perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia selama periode 2005-2007. Komponen modal kerja yang digunakan dalam penelitian ini meliputi aktiva lancar terhadap rasio aset total, kewajiban lancar terhadap  rasio aset total, rasio lancar, rasio leverage dan uang tunai. Populasi penelitian ini adalah semua perusahaan manufaktur di Bursa Efek Indonesia. Metode pengambilan sampel yang digunakan adalah metode purposif. Dan analisis regresi berganda digunakan untuk uji hipotesisnya. Hasil penelitian menunjukkan bahwa: komponen modal kerja memiliki pengaruh penting pada profitabilitas perusahaan. Kewajiban lancar terhadap rasio aset total, rasio lancar dan leverage berdampak negatif terhadap profitabilitas. Di sisi lain, current aset terhadap aset rasio total dan cash ratio berdampak positif pada profitabilitas. This research tests the effect of working capital’s component to the profitability of manufacturing company listed in Indonesia Stock Exchange over the period of 2005-2007. The working capital’s components used in this research include current asset to total asset ratio, current liabilities to total asset ratio, current ratio, leverage and cash ratio. Population of this research is all of manufacturing company at Indonesia Stock Exchange. Sampling method uses purposive sampling method. Hypothesis test uses multiple regression analysis. The results show that working capital component has significance influence on corporate profitability, current liabilities to total asset ratio, current ratio and leverage have negative impact on profitability. In other side, current asset to total asset ratio and cash ratio have positive impact on profitability.

Capital Adequacy, Cost Income Ratio and the Performance of Saudi Banks (2007-2011)

OpenAIRE

Ahmad Aref Almazari

2013-01-01

This paper examines the relationship between Capital adequacy and profitability. Necessary data were gathered from the financial statements of nine Saudi banks listed in the stock exchange market over the period of 2007-2011. The results of analyzing the data based on the implementation of linear regression technique reveals that there is a meaningful relationship between capital adequacy, cost-income ratio and bank size with profitability. Profitability represented in this study by the retur...

MANDATORY TAKEOVER BIDS ON ROMANIAN CAPITAL MARKET

Directory of Open Access Journals (Sweden)

Cristian GHEORGHE

2017-05-01

Full Text Available The Romanian Capital Market Law (Law no 297/2004 lays down rules regarding public offers (to buy or sell of securities admitted to trading on a regulated market. Such offers are not unknown in the general framework of companies’ regulations, i.e. Company Law no 31/1990. Actually a public limited liability company (joint stock company can use a public subscriptions (offering shares for sale to raise the registered capital for incorporation of the company or to increase the company’s share capital already established. But all such operations are voluntary decisions. The founders or the shareholders of the company are those who decide to launch a public subscriptions. Capital Market Law comes with something new and at least peculiar at first sight: mandatory takeover bid, meaning a mandatory public offer made by an offeror to the holders of the securities of a company (offeree to acquire all or some of those securities. Can someone be forced to buy securities on the regulated market? The Capital Market Law responds affirmatively, but only if such takeover bid follows or has as its objective the acquisition of control of the offeree company in accordance with national law. The takeover bid remains under supervision and authorization of the national authority of the Capital Market (FSA – Financial Supervisory Authority.

Reducing the cost of health care capital.

Science.gov (United States)

Silberman, R

1984-08-01

Although one may ask four financial experts their opinion on the future of the hospital capital market and receive five answers, the blatant need for financial strategic planning is evident. Clearly, the hospital or system with sound financial management will be better positioned to gain and/or maintain an edge in the competitive environment of the health care sector. The trends of the future include hospitals attempting to: Maximize the efficiency of invested capital. Use the expertise of Board members. Use alternative capital sources. Maximize rate of return on investments. Increase productivity. Adjust to changes in reimbursements. Restructure to use optimal financing for capital needs, i.e., using short-term to build up debt capacity if long-term financing is needed in the future. Take advantage of arbitrage (obtain capital and reinvest it until the funds are needed). Delay actual underwriting until funds are to be used. Better management of accounts receivable and accounts payable to avoid short-term financing for cash flow shortfalls. Use for-profit subsidiaries to obtain venture capital by issuing stock. Use product line management. Use leasing to obtain balance sheet advantages. These trends indicate a need for hospital executives to possess a thorough understanding of the capital formation process. In essence, the bottom line is that the short-term viability and long-term survival of a health care organization will greatly depend on the financial expertise of its decision-makers.

THE MOMENTUM EFFECT EXEMPLIFIES THE INFLUENCE OF INVESTORS’ IRRATIONAL BEHAVIOUR ON CHANGING PRICES OF SHARES AND STOCKS: AN ANALYSIS OF THE MOMENTUM EFFECT ON THE WARSAW STOCK EXCHANGE

Directory of Open Access Journals (Sweden)

Paweł Merło

2015-08-01

Full Text Available An efficient market should not show any anomalies. When new information reaches a market which is efficient, it should automatically translate into prices of assets, which ought to eliminate the possibility of gaining an advantage over other investors, thus preventing excess profits. However, studies on capital markets indicate that in reality it is possible to earn unusually high profits by taking advantage of certain anomalies which occur on a given market. Among such anomalies there is the momentum effect. This study performed on the Stock Exchange in Warsaw has shown that the momentum effect occurred throughout the entire analyzed time period. Positive returns demonstrated for investment strategies based on the momentum effect were unexplainable by the classical theory of finances. A correlation was found between the economic situation on the stock exchange and portfolio return rates, but it was too weak to attribute the effect to a single decisive factor. In addition, the returns from investments based on the momentum effect were statistically higher in January than in the other months, which was caused by the January effect, stimulating the occurrence of statistically higher returns at the beginning of a year rather than later on during the analyzed period of time. Research in this field carried out in other countries justifies the claim that there are many irrational factors which together create the momentum effect on the stock exchange. Thus, it is possible to conclude that irrational decisions may have strong impact on the pricing of stocks on the capital market. The momentum effect persisted throughout the entire analyzed period, although its power changed cyclically, which coincides with results of research carried out in other countries. The fact that the momentum effect did not disappear may suggest that the factors involved in its creation are an indispensable part of the market, and this seems to undermine the commonly accepted

The development of capital market and bank risk: The case of Iran

Directory of Open Access Journals (Sweden)

Navid Babak Jamshidi

2017-01-01

Full Text Available This paper is an attempt to investigate about relationship between the development of capital market and bank risk in Tehran Stock Exchange. Three hypotheses were presented in this research. This is a descriptive- correlative research. Multi-variable regression was used in this research. According to results of this research, there is a significant relationship between the development of capital market and bank risk. Additionally, there is significant relationship between Beta, income variety, and market value and capital market development. Also, due to effective role of bank in Iran economy bridge market, it is possible to point out its effective role in capital market. Results of this research confirm this claim. It is suggested to stakeholders and users of banking information and capital market to pay attention to bank risks regard their decision-making.

Illiquidity premium and expected stock returns in the UK: A new approach

Science.gov (United States)

Chen, Jiaqi; Sherif, Mohamed

2016-09-01

This study examines the relative importance of liquidity risk for the time-series and cross-section of stock returns in the UK. We propose a simple way to capture the multidimensionality of illiquidity. Our analysis indicates that existing illiquidity measures have considerable asset specific components, which justifies our new approach. Further, we use an alternative test of the Amihud (2002) measure and parametric and non-parametric methods to investigate whether liquidity risk is priced in the UK. We find that the inclusion of the illiquidity factor in the capital asset pricing model plays a significant role in explaining the cross-sectional variation in stock returns, in particular with the Fama-French three-factor model. Further, using Hansen-Jagannathan non-parametric bounds, we find that the illiquidity-augmented capital asset pricing models yield a small distance error, other non-liquidity based models fail to yield economically plausible distance values. Our findings have important implications for managing the liquidity risk of equity portfolios.

Analisis Faktor-Faktor Yang Mempengaruhi Bid Ask Spread Pada Masa Sebelum Dan Sesudah Stock Split Di Bursa Efek Indonesia Periode 2008-2013

OpenAIRE

Pakpahan, Quitsyah Agnes

2014-01-01

Bid Ask Spread is the difference of ask-price and bid-price of shares on the capital market. Bid ask spread is a factor that can influence the investor decision whether hold or sell their shares and make profit from spread of ask price and bid price. This is indicates that the stock liquidity as reflected in the stock price, trading volume, stock return will affect bid ask spread. Bid ask spread will increase if the risk of stock is increase, such as the less liquidity of stock, the higher ri...

Global Concept of Financial Institutional Transformation of Stock Exchange

Directory of Open Access Journals (Sweden)

Burmaka Mykola

2017-12-01

Full Text Available The article is about the research of processes of global transformation of stock exchanges through the mechanisms of internationalization, corporate and network consolidation, and technology. Objective processes of internationalization in stock markets affected by financial globalization and arising global information resources create new challenges for stock exchanges that can be overcome by adequate development strategies. The growing competition between stock exchanges and new capital institutes requires stock exchanges to use modern exchange technologies, primarily innovative, in order to maintain liquidity and increase investment attractiveness. Have been analysed the newest tendencies and determinants of modern global financial institutional architecture construction, the leading role in which are starting to play new stock exchanges and stalk exchange platforms, formed in growing financial centres of the world. Have been identified he main components of international stock market restructurization in the process of financial globalization, one of the attributes of which turned out to be a certain fragmentation of markets and their universalization. Through the example of US and EU financial market modernization processes of the last decade have been analysed financial and legal mechanisms of the national and regional levels, which are designed to ensure sustainable development of the global economy at the postcrisis stage. Have been diagnosed international activity of stock exchanges through the quantity indexed of foreign companies in listing, volume of trade with foreign financial instruments, and participation of foreign investors in exchange trade. Have been offered and calculated indices of internationalization of the world’s leading stock market. Have been analysed consolidation processes of the leading stock exchanges and new electronic trading systems at the regional, meso-global and global levels, which resulted in formation of

Social capital, family violence, and neglect.

Science.gov (United States)

Zolotor, Adam J; Runyan, Desmond K

2006-06-01

Social capital includes collective efficacy, psychological sense of community, neighborhood cohesion, and parental investment in the child. It has been shown to be associated with a variety of health and welfare outcomes and may be useful in understanding and preventing parenting behaviors on the continuum of child abuse and neglect. The purpose of this research was to evaluate low social capital as a risk factor for harsh physical punishment, neglectful parenting, psychologically harsh parenting, and domestic violence. This study is an analysis of cross-sectional telephone survey data of mothers in North and South Carolina (n = 1435). We constructed a 4-point social capital index reflecting survey responses to items ascertaining neighborhood characteristics, willingness to take personal action, the presence of 2 adults in the household, and regular religious service participation. We assessed the relationship of social capital to inventories of self-reported parenting behaviors and in-home violence. In adjusted analysis, we found that each 1 point increase in a 4-point social capital index was associated with a 30% reduction in the odds of neglectful parenting, psychologically harsh parenting, and domestic violence. There was no relationship between social capital and harsh physical punishment. This study demonstrates that increasing social capital decreases the odds of neglectful parenting, psychologically harsh parenting, and domestic violence but not harsh physical punishment. This supports further investigation into developing social capital as a resource for families.

FACTORS AFFECTING TOBIN'S Q COAL MINING COMPANY REGISTERED IN INDONESIA STOCK EXCHANGE

Directory of Open Access Journals (Sweden)

E. Batara Manurung

2016-05-01

Full Text Available The purpose of this study is to examine the effect of capital structure (debt to asset ratio and debt to equity ratio, economic value added, and coal reserves towards Tobin’s Q, as a proxy of firms’ value, of coal companies listed on the Indonesia Stock Exchange (IDX. This study also aims to examine the contribution of Tobin’s Q towards sectoral stock index price of coal production companies. From a total population of 23 companies, this study took a sample of 16 coal production companies using purposive sampling method. The data used is collected from the companies audited financial statements and annual reports in IDX’s website from 2009 to 2014. The results of multiple linear regression analysis show that there is significant impact of economic value added, coal reserves and profitability dummy towards Tobin’s Q. Furthermore, the results of linear regression analysis show that there is significant impact of Tobin’s Q towards sectoral stock index price of coal production companies. Based on the results of this study, the financial decision makers in coal production companies are advised to use economic value added, availability of coal reserves and profitability in improving firm value reflected in its share price.Keywords: capital structure, coal reserves, economic value added, Tobin’s Q

Causality tests between stock market development and economic growth in West African Monetary Union

Directory of Open Access Journals (Sweden)

Maman Tachiwou ABOUDOU

2009-12-01

Full Text Available This paper examines the causal relationship between stock market development and economic growth for the West African Monetary Union economy over the last decade or so. By applying the techniques of unit–root tests and the long–run Granger noncausality test proposed by Toda and Yamamoto (1995, the causal relationships between the real GDP growth rate and two stock market development proxies are tested. The results are in line with the supply leading hypothesis in the sense that there is strong causal flow from the stock market development to economic growth. A unidirectional causal relationship is also observed between real market capitalization ratio and economic growth.

Russian Capital in Latvia: Trends and Perspectives

Directory of Open Access Journals (Sweden)

N A Volgina

2015-12-01

Full Text Available The article deals the issue of the positions of Russian capital in Latvian market. The paper aims to estimate the volume and dynamics of Russian capital inflows into Latvia in compliance with Russian economic interests; to identify key sectors of Latvian economy that Russian capital is interested to invest in; to systemize information concerning Russian firms investing in Latvia; to assess the role of Russian capital in Latvian economy in comparison with other foreign investors; to propose author’s view on challenges and perspectives of Latvian-Russian investment cooperation in the situation of economic sanctions and geo-political conflict in east Ukraine. The author underlines that at the end of 2013, investments of Russian business to Latvia constituted about 5.0% of the total FDI stock and by that time Russia was the 7th largest investor with 0.5 bln euro of capital invested. The main sectors of Russian interests in Latvia are - gas supply, transport communications (transit corridors, banking and real estate. The article concludes that though the future of Russian-Latvian economic relations in the short-run is on a substantial pressure of geopolitical factors, the economic interests in mutual investment relations will prevail in the long-run perspectives.

Relative cost of capital for marginal firms over the business cycle

OpenAIRE

Gikas A. Hardouvelis; Thierry A. Wizman

1992-01-01

The authors compare the effects of the business cycle on the cost of capital faced by small, distressed firms and their larger, more financially secure counterparts. The analysis draws on stock market returns data for a broad range of traded companies during the 1963-91 period.

Can ethnic-linguistic diversity explain cross country differences in social capital?: a global perspective

DEFF Research Database (Denmark)

Wang, Cong; Steiner, Bodo

2015-01-01

Motivated by theoretical arguments (see e.g. Putnam, 2007) that assert a negative impact of ethnolinguistic diversity on social capital, this paper aims to provide some empirical evidence on the relationship between the two variables. In particular, using a cross section sample of 68 developed an...... diversity tend to have lower levels of social trust, fewer memberships in social organizations, deteriorated social norms and structure, hence, lower overall social capital stock....

INVESTIGATING FINANCIAL INNOVATION AND EUROPEAN CAPITAL MARKETS. THE CASE OF CATASTROPHE BONDS AND LISTED REINSURANCE COMPANIES

Directory of Open Access Journals (Sweden)

CONSTANTIN LAURA-GABRIELA

2014-12-01

Full Text Available Focusing on the financial innovation – stock market interconnections, the present research studies the association between the insurance-linked market activity of European (reinsurance companies and their evolution on the capital markets. With the aim of emphasizing the connections from the perspective of the stock performance and their risk, the empirical analysis is based on vector autoregression (VAR and Granger causality analyses. The proposed examination is further developed by considering both impulse response functions and variance decomposition insights. The proxies of the catastrophe bond market, as financial innovation, there are employed both the size and the number of catastrophe bonds transactions, while the stock returns and their standard deviation stand for representatives of the evolution of the reinsurance companies on the capital markets in terms of financial performance and risk. The main results confirm other studies, suggesting that the effects of issuing cat bonds on the ceding companies is reflected rather in terms of stocks’ risk diminishing

INVESTIGATING FINANCIAL INNOVATION AND EUROPEAN CAPITAL MARKETS. THE CASE OF CATASTROPHE BONDS AND LISTED REINSURANCE COMPANIES

Directory of Open Access Journals (Sweden)

CONSTANTIN LAURA-GABRIELA

2014-12-01

Full Text Available Focusing on the financial innovation – stock market interconnections, the present research studies the association between the insurance-linked market activity of European (reinsurance companies and their evolution on the capital markets. With the aim of emphasizing the connections from the perspective of the stock performance and their risk, the empirical analysis is based on vector autoregression (VAR and Granger causality analyses. The proposed examination is further developed by considering both impulse response functions and variance decomposition insights. The proxies of the catastrophe bond market, as financial innovation, there are employed both the size and the number of catastrophe bonds transactions, while the stock returns and their standard deviation stand for representatives of the evolution of the reinsurance companies on the capital markets in terms of financial performance and risk. The main results confirm other studies, suggesting that the effects of issuing cat bonds on the ceding companies is reflected rather in terms of stocks’ risk diminishing.

MEASURES OF THE STATE FOR INTRODUCTION DEOFFSHORIZATION IN STOCK MARKET OF UKRAINE

Directory of Open Access Journals (Sweden)

Oksana Kiktenko

2016-11-01

Full Text Available The purpose of the article is to improve monitoring and control in the system of state regulation of the stock market and to develop practical recommendations for an integrated mechanism, which is aimed at stabilizing and improving the functioning of its state regulators. Methodology. The following research methods were used: analysis and synthesis – to identify the most important factors affecting the operation of the stock market, consolidation of trends and evaluation the effectiveness of individual measures of government regulation; statistical analysis, comparison and generalization – to study the effectiveness of the regulatory bodies of the stock market in Ukraine. Results. It’s necessary to introduce deoffshorization, which is a tool of economic mechanism of the development of state regulation of the stock market and optimal combination of the tax burden, comfortable business environment and the country’s stock market capitalization. Practical significance. Practical recommendations on the need to introduce deoffshorization in the stock market of Ukraine are seen as a tool of economic mechanism for further state regulation development of the stock market, used in the formation of proposals to introduce deoffshorization in the stock market in the Regulations of the National Commission on Securities and Stock Market. Value/originality. Implementation of the deoffshorization in the stock market will allow the State to strengthen the protection of investors’ rights, it is a strategic goal of Ukraine, as well as to strengthen the local stock market and increase its credibility among the population.

An evaluation of airline beta values and their application in calculating the cost of equity capital.

OpenAIRE

Turner, Sheelah; Morrell, Peter

2003-01-01

This paper focuses on the calculation of the cost of equity capital in a sample of airlines, in comparison to industry-calculated values. The approach usually taken is to apply the Capital Asset Pricing Model to airline stock prices and market indices. The research shows that the calculated b values are sensitive to the precise methodology and calculations used. Further, the low regression model fits indicate the Capital Asset Pricing Model may not be the most suitable model for b value calcul...

Investor Reaction to Market Surprises on the Istanbul Stock Exchange Investor Reaction to Market Surprises on the Istanbul Stock Exchange = İstanbul Menkul Kıymetler Borsasında Piyasa Sürprizlerine Yatırımcı Tepkisi

Directory of Open Access Journals (Sweden)

Yaman Ömer ERZURUMLU

2011-08-01

Full Text Available This paper examines the reaction of investors to the arrival of unexpected information on the Istanbul Stock Exchange. The empirical results suggest that the investor reaction following unexpected news on the ISE100 is consistent with Overreaction Hypothesis especially after unfavorable market surprises. Interestingly such pattern does not exist for ISE30 index which includes more liquid and informationally efficient securities. A possible implication of this study for investors is that employing a semi contrarian investment strategy of buying losers in ISE100 may generate superior returns. Moreover, results are supportive of the last regulation change of Capital Market Board of Turkey which mandates more disclosure regarding the trading of less liquid stocks with lower market capitalization.

CONTAGIOUS EFFECTS OF OIL PRICES ON ASIAN STOCK MARKETS’ BEHAVIOUR

Directory of Open Access Journals (Sweden)

Jok-Tong Wan

2016-05-01

Full Text Available The main objective of this study is to examine the stock markets’ shock due to the effect of the price of oil in the East Asia Region. Particularly, this study examines if there is stock market interdependence during global oil price shocks (sudden changes for a sample of five total oil importers (the Philippines, Hong Kong SAR, Taiwan, South Korea, and Japan, four net oil importers (Indonesia, Singapore, Thailand, and China, and one net oil exporter (Malaysia between 1999 and 2014. From the result, an oil price change is collectively found to have a small but significant positive impact on the stock markets, in particular where a sudden decrease in oil prices tends to cause a stock market downturn and volatility. The world economy’s spending, financial investments in oil futures and foreign investment by oil rich nations are some underlying motives for inducing this oil-stock positive relation. The same direction of time-varying conditional correlations is found across East Asian stock markets during negative oil price shocks. The integration among East Asian stock markets is inducing the oil shock contagion to be transmitted from direct oil-affected countries (South Korea, Hong Kong, and Singapore to non-direct oil affected countries’ (Japan and Taiwan stock markets. In spite of a long practiced ASEAN+3 macroeconomics surveillance process and Early Warning System (EWS which can be customized for stock markets to prevent or detect the oil risk, hedging against initial oil-affected stock markets and a stronger influence by the East Asian countries in the global world of oil and capital investment are strongly suggested.

Applying Portfolio Selection: A Case of Indonesia Stock Exchange

Directory of Open Access Journals (Sweden)

Maria Praptiningsih

2012-01-01

Full Text Available This study has three objectives. First, we investigate whether Modern Portfolio Theory can be applied on the financial decisions that made by investors or individual in order to increase their wealth through investment activities. Second, we examine the real behavior of each asset in terms of capital assets pricing models. Third, we determine whether our portfolio is the best model to produce a higher return in a given level of risk or a lowest risk in a particular level of return. It is found that three different stocks listed in the Indonesia Stock Exchange have a positive relationship with market returns. The reactions of the investor regarding these stocks are not influenced by each other. Lastly, the minimum variance portfolio (MVP point which represents the single portfolio with the lowest possible level of standard deviation, occurs when the expected return of portfolio is approximately 2.2 percent at a standard deviation of 8.8 percent.

An Empirical Analysis of the Impact of Capital Market Activities on ...

African Journals Online (AJOL)

An Empirical Analysis of the Impact of Capital Market Activities on the Nigerian Economy. ... Others include the expansion of the stock market in terms of depth and breadth and the attraction of foreign direct investment and foreign portfolio investment into the Nigerian economic landscape. Keywords: Nigeria, Market ...

Multinational Enterprises and Social Capital as Location Factor

DEFF Research Database (Denmark)

Pedersen, Kurt; Svendsen, Gunnar L.H.; Svendsen, Gert Tinggaard

2013-01-01

across borders. We review the literature and identify a gap regarding social capital as a potential instrument for reducing the level of volatility. An existing stock of social capital may be advantageous not only to the host country but also to the MNE in the sense that optimal in-company resource......It is generally assumed that multinational enterprises (MNEs) are more volatile than local firms. From the viewpoint of host countries, the volatility of MNE subsidiaries is often seen as a problem. Therefore it becomes relevant to look for ways to reduce the volatility of multinational activity...... allocation and profits could be improved even further. Thus, the dominating theory of FDI (Foreign Direct Investment), the eclectic paradigm as developed by John Dunning, offers a relevant opportunity to fill a gap in the literature and include social capital in FDI decisions as a new location factor....

Analysis of value creation by eva® and stock return of real estate companies in brazil

Directory of Open Access Journals (Sweden)

Marcelo Rangner Vasconcelos

2017-01-01

Full Text Available In the last years, the real estate industry in Brazil grew and consolidated, causing the opening of capital of several companies in this segment. This scenario raises the need to evaluate the financial and the value creation of this sector. Faced with this situation, the present study aims to verify what is the relationship between Economic Value Added (EVA® and stock return of the construction industry that make up the Indix BM&FBOVESPA Real Estate (IMOB. As for methodological procedures, it is a bibliographical research, descriptive and as well as a multicaso study, contemplating nine companies that compose said index in 2015. The ability to generate value of this sector was analyzed through the Economic Value Added (EVA®, in which information was collected from the companies analyzed for the financial years 2010 to 2014, with the purpose of obtaining Return on Investment (ROI, Economic Value Added (EVA® and Stock Return. In general, the results of the survey that the average performance of companies, in those years, represents the destruction of value, provided by the impact of the cost of capital, which was higher than the net results of the Companies. Lastly, nominal EVA® and stock return are negatively correlated. On the other hand, residual ROI and stock return are Positively correlated significantly.

Taking Stock of Risk Factors for Child/Youth Externalizing Behavior Problems.

Science.gov (United States)

Hann, Della M., Ed.

Research on child and adolescent conduct problems has proliferated over the past 15 years, resulting in an extensive array of risk factors, processes, and targets for intervention. To capitalize fully on this extensive research base and contribute effectively to public mental health, the field now needs to take stock of what is known about child…

Government policy uncertainty and stock prices: The case of Australia's uranium industry

International Nuclear Information System (INIS)

Ferguson, Andrew; Lam, Peter

2016-01-01

We investigate effects of government policy uncertainty on stock prices, reflecting tension between ‘private interest’ (economic benefits) and ‘public interest’ arguments over uranium mining. Using a sample of Australian-listed uranium firms from January 2005 through June 2008, we document a positive contemporaneous correlation between stock returns and volatility and two measures of government policy uncertainty, proxied by the spread in voters' opinion polls between the two major political parties and a news-based sentiment index. Event-study results show significant stock price reactions to key uranium-related policy events, with cross-sectional variation in event returns predicted by models incorporating firm- and project-level characteristics. Our research design and findings may inform future research on the capital market effects of government policy uncertainty in other regulated industries. - Highlights: • Government policy uncertainty has direct effects on stock prices of uranium explorers. • Stock returns are positively related to the spread in two-party-preferred voting intention. • Stock volatility is positively related to a uranium news-based sentiment index. • Event-study results show significant market reaction to key uranium policy events.

Minority Shareholders' Wealth Effects and Stock Market Development: Evidence from Increase-in-Ownership M&As

OpenAIRE

Petmezas, D

2010-01-01

This paper examines, using a global M&A data set, the relationship between the target firm’s minority shareholders’ returns and a country’s stock market development in deals in which large shareholders increase their ownership stakes. For the purpose of this study, we use two measures of stock market development: (1) turnover over GDP, and (2) turnover over market capitalization. We provide evidence supporting the view that minority shareholders in target firms gain significantly more in coun...

26 CFR 1.263(a)-2 - Examples of capital expenditures.

Science.gov (United States)

2010-04-01

...) INCOME TAX (CONTINUED) INCOME TAXES Items Not Deductible § 1.263(a)-2 Examples of capital expenditures... subsidiary and increasing the value of its stockholdings in the subsidiary shall not deduct amounts paid in... be added to the cost of its stock in the subsidiary. (h) The cost of good will in connection with the...

Evidence on the relation between public capital and Government efficiency

OpenAIRE

Francisca Guedes de Oliveira

2010-01-01

This paper intends to contribute to the literature by providing empirical evidence on the relation between public capital stock and government efficiency. We present some objective indicators fo government efficiency and explore the mentioned relation. we find a positive and significant relation between both variables that survives the introduction of controls and robustness checking.

PENGARUH STRUKTUR KEPEMILIKAN DALAM MEKANISME CORPORATE GOVERNANCE TERHADAP COST OF EQUITY CAPITAL

Directory of Open Access Journals (Sweden)

tarjo tarjo

2009-10-01

Full Text Available Corporate governance mechanisms believed to have strong impact to the companies’ performance. Corporate governance mechanisms examined in this study are managerial ownership and institutional ownership structure. The purposes of this study are to know the variables effect of managerial ownership and institutional ownership on cost of equity capital. The samples of the study are firms listed in Jakarta Stock Exchange in 2005. The F-test on the all variables at the level confidence 1% indicates the effect of all variables on cost of equity capital is significant. The result of this study showed that managerial ownership and institutional ownership have positive significant impact (at the level of confidence 1% and 5% on the cost of equity capital. However this result showed that corporate governance mechanisms fail to decrease the cost of equity capital.  Keywords: corporate governance, managerial ownership, institutional ownership, cost of equity capital.

Organizational Capital of the Enterprise

Directory of Open Access Journals (Sweden)

Vladimir Nikiforovich Belkin

2016-09-01

Full Text Available In the article, the main theoretical questions of the organizational capital of the enterprise are considered. The concept of «organizational capital of the enterprise» as a system consisting of three subsystems (organization of production, labour organization and management is introduced. It is shown that the organizational capital forms the labour relations system at the enterprise consisting of the cooperation, technological, economic, moral labour relations and the relations of workers’ responsibility. The model of cyclic evolution of crisis at the enterprise caused by shortcomings of the organizational capital is revealed. It is shown that the organizational capital is a basis for the realization of the human capital, which creates value added. A considerable attention is paid to the experience of the creation and functioning of the organizational capital at the enterprises of the Japanese corporation «Toyota». The Russian economic literature on crisis management quite often considers only the financial aspects of diagnostics, proposing the optimization of cash flows, elimination of excess stocks, transition to the medium-term budgeting and others. However, the deep reasons of crisis need to be found not only in financial streams, but also in the system of the work relationships. The shortcomings in the development of technological, cooperation, economic, moral labour relations and the relations of responsibility directly reflects the shortcomings in the development of the elements of the organizational capital as they «are adjusted» by these elements. In turn, organizational problems affect the product quality leading to the customer attrition and decrease in the enterprise’s financial performance. The lack of financial resources cause the need to save costs (first of all, on personnel, that was brightly shown by the economic crisis of 2009 that even more weakens the enterprise and system of labour relations. Finally, the

Mandatory IFRS adoption and the cost of Equity Capital. Evidence from Spanish Firms

Directory of Open Access Journals (Sweden)

David Castillo-Merino

2014-05-01

Full Text Available Purpose: The main objective of this paper analyses the effects of mandatory International Financial Reporting Standards (IFRS adoption by Spanish firms in 2005 on the cost of equity capital. Design/methodology: Using a sample of listed Spanish companies during the 1999 to 2009 period and a country-level focused analysis. To achieve our objective we relied on OLS regression analysis and estimate the dependent variable – the cost of equity – by using the proxy suggested in Easton (2004. Findings: We find evidence that, unlike previous studies, Spanish listed companies show a significant reduction in their cost of equity capital after the mandatory adoption of IFRS in 2005, after controlling by a set of firm-risk and market variables. According to our results, increased financial disclosure and enhanced information comparability, along with changes in legal and institutional enforcement, seem to have a joint effect on the cost of capital, leading to a large decrease in expected equity returns. Research limitations: The main limitation of the study is that the sample represents just one country. Practical implications: The findings of the study may have implications for the firms’ management staff, as they reveal what information determines the cost of equity capital. The systematic risk and the leverage affect positively the cost of stocks and therefore their market value. The results are consistent with the financial principle establishing that the higher risk and the higher leverage, the higher cost of capital. Originality/value: As a result of the conducted research, one is able to figure out which stock-return variables should be observed to anticipate the change of a company’s cost of capital.

East Asian Capital Markets: Integration and Convergence

Directory of Open Access Journals (Sweden)

Yana Valeryevna Dyomina

2016-09-01

Full Text Available The article examines the interdependence of East Asian stock and bond markets. Hierarchical cluster analysis of bond markets of ten regional countries shows that the most similar ones are the following: Indonesia, Malaysia, the Philippines and Singapore. In 2006-2009 Thailand also belonged with this group, however, since 2010 it is a separate cluster. The second cluster includes Hong Kong, the Republic of Korea and China, the third one - Japan, the fourth one - Vietnam. As for regional equity markets, the study shows that regional stock indices respond to the dynamics of American ones to a greater extent than to the dynamics of each other. In addition, Asian indices’ interconnection is chiefly negative. To assess stock indices’ convergence the author employs cluster analysis which divides 16 studied stock exchanges in 7 different groups. According to the obtained results, the author concludes that integration of regional capital markets is the long-term goal. Besides, markets’ integration will be easier and faster within clusters; inter-cluster mergers will be the next step. The basic problem here arises from the Japanese market, which, in the case of forced or ill-conceived program of events, will absorb all other markets or end up outside the integration processes

The importance of economic, social and cultural capital in understanding health inequalities: using a Bourdieu-based approach in research on physical and mental health perceptions.

Science.gov (United States)

Pinxten, Wouter; Lievens, John

2014-09-01

In this article we adopt a Bourdieu-based approach to study social inequalities in perceptions of mental and physical health. Most research takes into account the impact of economic or social capital on health inequalities. Bourdieu, however, distinguishes between three forms of capital that can determine peoples' social position: economic, social and cultural capital. Health research examining the effects of cultural capital is scarce. By simultaneously considering and modelling indicators of each of Bourdieu's forms of capital, we further the understanding of the dynamics of health inequalities. Using data from a large-scale representative survey (N = 1825) in Flanders, Belgium, we find that each of the forms of capital has a net effect on perceptions of physical and mental health, which persists after controlling for the other forms of capital and for the effects of other correlates of perceived health. The only exception is that the cultural capital indicators are not related to mental health. These results confirm the value of a Bourdieu-based approach and indicate the need to consider economic, social and cultural capital to obtain a better understanding of social inequality in health. © 2014 The Authors. Sociology of Health & Illness © 2014 Foundation for the Sociology of Health & Illness/John Wiley & Sons Ltd.

What stock market returns to expect for the future?

Science.gov (United States)

Diamond, P A

2000-01-01

In evaluating proposals for reforming Social Security that involve stock investments, the Office of the Chief Actuary (OCACT) has generally used a 7.0 percent real return for stocks. The 1994-96 Advisory Council specified that OCACT should use that return in making its 75-year projections of investment-based reform proposals. The assumed ultimate real return on Treasury bonds of 3.0 percent implies a long-run equity premium of 4.0 percent. There are two equity-premium concepts: the realized equity premium, which is measured by the actual rates of return; and the required equity premium, which investors expect to receive for being willing to hold available stocks and bonds. Over the past two centuries, the realized premium was 3.5 percent on average, but 5.2 percent for 1926 to 1998. Some critics argue that the 7.0 percent projected stock returns are too high. They base their arguments on recent developments in the capital market, the current high value of the stock market, and the expectation of slower economic growth. Increased use of mutual funds and the decline in their costs suggest a lower required premium, as does the rising fraction of the American public investing in stocks. The size of the decrease is limited, however, because the largest cost savings do not apply to the very wealthy and to large institutional investors, who hold a much larger share of the stock market's total value than do new investors. These trends suggest a lower equity premium for projections than the 5.2 percent of the past 75 years. Also, a declining required premium is likely to imply a temporary increase in the realized premium because a rising willingness to hold stocks tends to increase their price. Therefore, it would be a mistake during a transition period to extrapolate what may be a temporarily high realized return. In the standard (Solow) economic growth model, an assumption of slower long-run growth lowers the marginal product of capital if the savings rate is constant

Has the 2008 financial crisis affected stock market efficiency? The case of Eurozone

Science.gov (United States)

Anagnostidis, P.; Varsakelis, C.; Emmanouilides, C. J.

2016-04-01

In this paper, the impact of the 2008 financial crisis on the weak-form efficiency of twelve Eurozone stock markets is investigated empirically. Efficiency is tested via the Generalized Hurst Exponent method, while dynamic Hurst exponents are estimated by means of the rolling window technique. To account for biases associated with the finite sample size and the leptokurtosis of the financial data, the statistical significance of the Hurst exponent estimates is assessed through a series of Monte-Carlo simulations drawn from the class of α-stable distributions. According to our results, the 2008 crisis has adversely affected stock price efficiency in most of the Eurozone capital markets, leading to the emergence of significant mean-reverting patterns in stock price movements.

Capital productivity in industrialised economies: Evidence from error-correction model and lagrange multiplier tests

Directory of Open Access Journals (Sweden)

Trofimov Ivan D.

2017-01-01

Full Text Available The paper re-examines the “stylized facts” of the balanced growth in developed economies, looking specifically at capital productivity variable. The economic data is obtained from European Commission AMECO database, spanning 1961-2014 period. For a sample of 22 OECD economies, the paper applies univariate LM unit root tests with one or two structural breaks, and estimates error-correction and linear trend models with breaks. It is shown that diverse statistical patterns were present across economies and overall mixed evidence is provided as to the stability of capital productivity and balanced growth in general. Specifically, both upward and downward trends in capital productivity were present, while in several economies mean reversion and random walk patterns were observed. The data and results were largely in line with major theoretical explanations pertaining to capital productivity. With regard to determinants of the capital productivity movements, the structure of capital stock and the prices of capital goods were likely most salient.

MANAGEMENT OF THE WORKING CAPITAL AND FIRM PERFORMANCE IN THE ROMANIAN PHARMACEUTICAL SECTOR

Directory of Open Access Journals (Sweden)

LAURA RAISA MILOŞ

2014-12-01

Full Text Available The objective of the study is to reveal the connection between working capital and firm performance, in the case of some selected Romanian pharmaceutical companies, listed on Bucharest Stock Exchange. Regression analysis was performed in order to check our hypothesis. The main conclusion of our study is that there is a negative, but weak relationship between working capital and firm performance. In other words, the shorter the period between production and sale of products, the larger firm’s profitability.

INVESTIGATING FINANCIAL INNOVATION AND EUROPEAN CAPITAL MARKETS. THE CASE OF CATASTROPHE BONDS AND LISTED REINSURANCE COMPANIES

OpenAIRE

CONSTANTIN LAURA-GABRIELA; CERNAT-GRUICI BOGDAN; IAMANDI IRINA-EUGENIA

2014-01-01

Focusing on the financial innovation – stock market interconnections, the present research studies the association between the insurance-linked market activity of European (re)insurance companies and their evolution on the capital markets. With the aim of emphasizing the connections from the perspective of the stock performance and their risk, the empirical analysis is based on vector autoregression (VAR) and Granger causality analyses. The proposed examination is further develope...

Intellectual capital statements on their way to the stock exchange: Analyzing new reporting systems

DEFF Research Database (Denmark)

Nielsen, Christian; Bukh, P.N.; Mouritsen, J.

2006-01-01

Purpose - The purpose of this paper is to propose and illustrate the use of a set of rules to make an analytical reading of the indicators of an intellectual capital statement possible. Design/methodology/approach - The paper proposes a model to analyze intellectual capital statements and applies...... demonstrates the use of a theoretically anchored and practical, useful model for analysing disclosure in the narrative part of a financial report....

Welfare of African catfish : effects of stocking density

NARCIS (Netherlands)

Nieuwegiessen, van de P.G.

2009-01-01

The general aim of this thesis was to determine the impact of stocking density on welfare indicators in African catfish, Clarias gariepinus, cultured in a recirculating aquaculture system. The following factors were studied: 1) the effects of stocking density on physical, physiological, and

Emerging interdependence between stock values during financial crashes.

Directory of Open Access Journals (Sweden)

Jacopo Rocchi

Full Text Available To identify emerging interdependencies between traded stocks we investigate the behavior of the stocks of FTSE 100 companies in the period 2000-2015, by looking at daily stock values. Exploiting the power of information theoretical measures to extract direct influences between multiple time series, we compute the information flow across stock values to identify several different regimes. While small information flows is detected in most of the period, a dramatically different situation occurs in the proximity of global financial crises, where stock values exhibit strong and substantial interdependence for a prolonged period. This behavior is consistent with what one would generally expect from a complex system near criticality in physical systems, showing the long lasting effects of crashes on stock markets.

Emerging interdependence between stock values during financial crashes.

Science.gov (United States)

Rocchi, Jacopo; Tsui, Enoch Yan Lok; Saad, David

2017-01-01

To identify emerging interdependencies between traded stocks we investigate the behavior of the stocks of FTSE 100 companies in the period 2000-2015, by looking at daily stock values. Exploiting the power of information theoretical measures to extract direct influences between multiple time series, we compute the information flow across stock values to identify several different regimes. While small information flows is detected in most of the period, a dramatically different situation occurs in the proximity of global financial crises, where stock values exhibit strong and substantial interdependence for a prolonged period. This behavior is consistent with what one would generally expect from a complex system near criticality in physical systems, showing the long lasting effects of crashes on stock markets.

TESTING FORMARKET ANOMALIES IN DIFFERENT SECTORS OFTHE JOHANNESBURG STOCK EXCHANGE

OpenAIRE

Mpho I. Mahlophe; Paul-Francois Muzindutsi

2017-01-01

Thisstudy comparedthe performance of different asset-pricing models and theirability to account for market anomalies in different sectors of the JohannesburgStock Exchange (JSE). The total sample size of the study consisted of 156companies categorised into six differentsectors namely, resources, consumergoods, consumer services, financial, industrial and others.Various asset-pricingmodels such asthe Capital Asset pricing Model(CAPM),the Fama and Frenchthree-factor model an...

Nursing intellectual capital theory: operationalization and empirical validation of concepts.

Science.gov (United States)

Covell, Christine L; Sidani, Souraya

2013-08-01

To present the operationalization of concepts in the nursing intellectual capital theory and the results of a methodological study aimed at empirically validating the concepts. The nursing intellectual capital theory proposes that the stocks of nursing knowledge in an organization are embedded in two concepts, nursing human capital and nursing structural capital. The theory also proposes that two concepts in the work environment, nurse staffing and employer support for nursing continuing professional development, influence nursing human capital. A cross-sectional design. A systematic three-step process was used to operationalize the concepts of the theory. In 2008, data were collected for 147 inpatient units from administrative departments and unit managers in 6 Canadian hospitals. Exploratory factor analyses were conducted to determine if the indicator variables accurately reflect their respective concepts. The proposed indicator variables collectively measured the nurse staffing concept. Three indicators were retained to construct nursing human capital: clinical expertise and experience concept. The nursing structural capital and employer support for nursing continuing professional development concepts were not validated empirically. The nurse staffing and the nursing human capital: clinical expertise and experience concepts will be brought forward for further model testing. Refinement for some of the indicator variables of the concepts is indicated. Additional research is required with different sources of data to confirm the findings. © 2012 Blackwell Publishing Ltd.

Knight Capital Americas LLC

DEFF Research Database (Denmark)

Austin, Robert D.; Meister, Darren

2015-01-01

It took 19 years to build Knight Capital Americas LLC into the largest market maker on the New York Stock Exchange, but on August 1, 2012, it took only 45 minutes for the firm to be wiped out by an information technology (IT) problem: a change in the company's software caused it to lose more than...... $450 million dollars in less than an hour. Although it was ultimately saved from bankruptcy when it was acquired two days later, the terms of acquisition were very unfavourable to the company's shareholders. How did this happen? Could it have been prevented? What should the staff, the chief executive...

Effects of rate-of-return regulation on the intensity of use and durability of capital

Energy Technology Data Exchange (ETDEWEB)

Epple, D [Carnegie-Mellon Univ., Pittsburgh, PA; Zelenitz, A

1979-10-01

It has been suggested that rate-of-return regulation reduces the incentives for technically efficient management, because regulation eliminates much of the gain firms might normally expect to realize from such efficiency. Rather than relying upon notions of managerial slack or X-inefficiency, this paper demonstrates that under-utilization of existing capital and a suboptimal choice of the capital stock's durability can be explained as rational profit-maximizing responses to the regulatory incentives. 11 references.

How to combine human resource management systems and human capital portfolios to achieve superior innovation performance

OpenAIRE

Rupietta, Christian; Backes-Gellner, Uschi

2013-01-01

Firms generate new knowledge that leads to innovations by recombining existing knowledge sources. A successful recombination depends on both the availability of a knowledge stock (human capital pool) that contains innovation-relevant knowledge and the regulation of the knowledge flow through the application of human resource management practices. However, while human resource theory expects complementarities between both the human capital pool and the human resource management system it does ...

Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies

Directory of Open Access Journals (Sweden)

Erdinc Karadeniz

2011-01-01

Full Text Available Aim of this study is to investigate the role of firm size on capital structure decisions of Turkish lodging companies. In this context, a survey questionnaire is developed and sent to unquoted Turkish lodging companies. 163 lodging companies answered the survey and they are classified according to their sizes. Empirical findings reveal that firm size is a significant factor for capital structure decisions of Turkish lodging companies. Firm size seems to affect lodging companies in using incentives, issuing common stock, using personal debt and determining target debt ratio. Most of the empirical findings seem to support pecking order theory.

An Unexplored Facet of International Business in Greece: Foreign and Diaspora Shareholders in Joint Stock Company Start-Ups, 1833-1920

Directory of Open Access Journals (Sweden)

Ioanna Sapfo Pepelasis

2016-07-01

Full Text Available This paper focuses on an unexplored aspect of the history of international business in Greece, the presence of international shareholders in Greek Joint stock company start-ups. Our main findings are that these investors participated in numerous such firms usually as minority shareholders in capital and or knowledge intensive firms. Rarely did they opt for the exclusive international ownership of a joint stock company in Greece and the dividing line  between foreign direct investment and foreign portfolio investment was not always clear. It is also the case that international capital inflow into the nascent corporate sector involved a mosaic of collaborating actors including not only the foreign but also the diasporic.

Overseas listing location and capital structure

Institute of Scientific and Technical Information of China (English)

Peixin Li; Baolian Wang

2014-01-01

Purpose-A significant number of Chinese companies are listed overseas.The authors aim to examine whether overseas locations affect their financing decision,specifically their capital structure choice.Design/methodology/approach-Most of the Chinese overseas listed companies are listed in the USA and Hong Kong.As the institutional quality of the USA is better than Hong Kong,the authors,therefore,choose to build the hypotheses from the “law and finance” literature.Specifically,the authors argue that the better institutional environment of the USA can mitigate the information asymmetry problem and the agency problem of financing via equity.Consequently,firms listed in the USA will rely more on equity and have lower leverage ratio.The difference in leverage ratio of US listed and Hong Kong listed companies should be larger when the marginal benefit of better information environment is larger.Findings-Referring to various data sources,the authors construct a comprehensive list of overseas listed companies in the USA and Hong Kong.The authors collect the accounting and stock performance information from Datastream/Worldscope and the equity offering data from Global New Issue database.The empirical findings provide strong support of the hypotheses:the leverage is 15 percent lower for US listed companies than the Hong Kong listed companies;the results are stronger when the firms face more severe information asymmetry problem;the stock price reacts less negatively for seasoned equity offering in the USA than in Hong Kong.Practical implications-Most of the Chinese companies decided to be listed overseas because they cannot be listed in the Mainland Chinese stock exchanges.One of the most important motivation is to access to external capital to support firm growth.As the main channel of external financing in the overseas markets is equity since debt is still mainly domestically based,one implication of this paper is that Chinese companies can gain better access to external

China’s Stock Market Integration with a Leading Power and a Close Neighbor

Directory of Open Access Journals (Sweden)

Zheng Yi

2009-12-01

Full Text Available Current integration and co-movement among international stock markets has been boosted by increased globalization of the world economy, and profit-chasing capital surfing across borders. With a reputation as the fastest growing economy in the world, China’s stock market has continued gaining momentum during recent years and incurred growing attention from academicians, as well as practitioners. Taking into account economic and geographical considerations, the US and Hong Kong are considerably the most comparable stock markets to China. The usual vector error correction model (VECM could overlook the long memory feature of cointegration residual series, which can in turn exert bias on the resulting inferences. To overcome its limitations, we employ a fractionally integrated VECM (FIVECM in this paper to investigate the long-term cointegration relations binding China’s stock market to the aforementioned stock markets. In addition, by augmenting the FIVECM with multivariate GARCH model, the return transmission and volatility spillover between market return series were revealed simultaneously. Our empirical results show that China’s stock market is fractionally cointegrated with the two markets, and it appears that China’s stock market has stronger ties with its neighboring Hong Kong market than with the world superpower, the US market.

Investigating the Associations between Ethnic Networks, Community Social Capital, and Physical Health among Marriage Migrants in Korea.

Science.gov (United States)

Kim, Harris Hyun-Soo

2018-01-17

This study examines factors associated with the physical health of Korea's growing immigrant population. Specifically, it focuses on the associations between ethnic networks, community social capital, and self-rated health (SRH) among female marriage migrants. For empirical testing, secondary analysis of a large nationally representative sample (NSMF 2009) is conducted. Given the clustered data structure (individuals nested in communities), a series of two-level random intercepts and slopes models are fitted to probe the relationships between SRH and interpersonal (bonding and bridging) networks among foreign-born wives in Korea. In addition to direct effects, cross-level interaction effects are investigated using hierarchical linear modeling. While adjusting for confounders, bridging (inter-ethnic) networks are significantly linked with better health. Bonding (co-ethnic) networks, to the contrary, are negatively associated with immigrant health. Net of individual-level covariates, living in a commuijnity with more aggregate bridging social capital is positively linked with health. Community-level bonding social capital, however, is not a significant predictor. Lastly, two cross-level interaction terms are found. First, the positive relationship between bridging network and health is stronger in residential contexts with more aggregate bridging social capital. Second, it is weaker in communities with more aggregate bonding social capital.

Empirical study of the ability of Canadian oil and gas companies' reserves disclosures to account for relative changes in common stock prices

Energy Technology Data Exchange (ETDEWEB)

Teall, H D

1987-01-01

The purpose of this study is to determine which of these alternative annual report disclosures of oil and gas reserves, namely historic capitalized costs, quantities, and discounted cash flows contributes the most information content. Information content is defined as the ability of a reserves disclosure to account for relative changes in common stock prices. Multiple correlation/regression analysis was used to evaluate the extent that each of the three alternative reserves disclosures account for common stock returns after first recognizing the information provided by an industry variable and by an earnings per share or cash flow per share variable. The results indicated that the earnings per share provides significant information content while the cash flow per share consistently provides no significant evidence of information content. The capitalized costs reserves disclosure did not provide consistent evidence of information content, while the quantities disclosure and the discounted cash flows disclosure do provide significant incremental information content. The study concludes that the alternative reserves disclosures of quantities and discounted cash flows are more informative to users when accounting for changes in a corporation's common stock prices than the disclosure of reserves in historic capitalized costs.

Penerapan Metode Capital Asset Pricing Model (Capm) Untuk Penetapan Kelompok Saham-saham Efisien (Studi Pada Perusahaan Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia Periode 2011 -2013)

OpenAIRE

Kurniawan, Fauzi Adi

2015-01-01

This research purpose to determine the performance of stock based on the return and risk to determine the group of efficient stocks and inefficient stock by the use of methods of Capital Asset Pricing Model (CAPM). The sample used in this study were 15 company shares consumer goods industry sector listed in Indonesia Stock Exchange 2011-2013 that selected based on certain criteria. The analysis showed there is 1 stock companies included in the group of inefficient stock (overvalued) and 14 st...

High-order fuzzy time-series based on multi-period adaptation model for forecasting stock markets

Science.gov (United States)

Chen, Tai-Liang; Cheng, Ching-Hsue; Teoh, Hia-Jong

2008-02-01

Stock investors usually make their short-term investment decisions according to recent stock information such as the late market news, technical analysis reports, and price fluctuations. To reflect these short-term factors which impact stock price, this paper proposes a comprehensive fuzzy time-series, which factors linear relationships between recent periods of stock prices and fuzzy logical relationships (nonlinear relationships) mined from time-series into forecasting processes. In empirical analysis, the TAIEX (Taiwan Stock Exchange Capitalization Weighted Stock Index) and HSI (Heng Seng Index) are employed as experimental datasets, and four recent fuzzy time-series models, Chen’s (1996), Yu’s (2005), Cheng’s (2006) and Chen’s (2007), are used as comparison models. Besides, to compare with conventional statistic method, the method of least squares is utilized to estimate the auto-regressive models of the testing periods within the databases. From analysis results, the performance comparisons indicate that the multi-period adaptation model, proposed in this paper, can effectively improve the forecasting performance of conventional fuzzy time-series models which only factor fuzzy logical relationships in forecasting processes. From the empirical study, the traditional statistic method and the proposed model both reveal that stock price patterns in the Taiwan stock and Hong Kong stock markets are short-term.

İstanbul Menkul Kıymetler Borsası’nda (İMKB Sektör Bazında İşlem Gören Hisse Senetlerinin Alım-Satım Kararlarında En Yüksek Getirili Stratejinin Belirlenmesi(Determination of Maximum Gainful Strategy in Exchange of Stocks Traded on Sectoral Basis in Istanbul Stock Exchange

Directory of Open Access Journals (Sweden)

Tuncer ÖZDİL

2006-01-01

Full Text Available Today economic units supply their long-term fund demands from capital markets. Firms can obtain funds to issue stocks and bonds in stock exchanges in accordance with market conditions. Particularly going public stocks in primary market are traded in secondary market due to market conditions. Investors in these markets desire to generate earnings from movement of prices and actually it is the main objective in capital markets. In this context, investors want to obtain information about prospective price changes in order to achieve their earning objective. However many time, it is not possible to get such an information because of uncertainty and risks in markets. Individual investors settle some strategies about stock exchange by the help of their personal experiences, observations and information, with an aim to overcome this uncertainty. It is important to decide accurate time of taking and selling stocks. It is not possible to estimate accuracy of timing. The same difficulty appears in strategy process, either. In this study, adequate timing decision of individual investors in stock exchange was examined by a simulation application. Investors’ possible strategies were determined. These strategies applied the closing values of sectoral indexes defined in Istanbul Stock Exchange and advisable strategies for each sector were determined.

WHAT DETERMINES THE CAPITAL STRUCTURE OF LISTED FIRMS IN ROMANIA

Directory of Open Access Journals (Sweden)

Floriniţa Duca

2012-10-01

Full Text Available This paper examines the relative importance of four factors in the capital structure decisions of Romanian listed firms. The existing empirical research on capital structure has been largely confined to developed countries. The Romanian Financial Market has been developing at an exponential rate and dedicated research in the field is required. We used 100 firms listed in 2010 at the Bucharest Stock Exchange. The objective of this paper is to build on previous studies model all the important factors affecting capital structure decisions. We find that factors such as tangibility of assets, firm size, liquidity, and profitability have significant influences on the leverage structure chosen by firms.These results are believed to have significant implications for the theory of finance and to be of importance to the corporate treasure in choice of new financing and to the financial analyst.

Social Capital in Rural Denmark

DEFF Research Database (Denmark)

Svendsen, G.L.; Svendsen, Gert Tinggaard

1999-01-01

What are the roots of social capital and how can it be measured and built? Social capital is considered as a new production factor which must be added to the conventional concepts of human and physical capital. Social capital is productive because it increases the level of trust in a society...... and allows more transactions to take place without third-party enforcement. Theory and lessons from empirical evidence lead to the general recommendation that any loss in social capital must be deducted from the economic gain following market forces. For example, the voluntary organization of small......-sized groups in the Danish Cooperative Dairy Movement was eliminated due to economies of scale. It may be so that an alternative way of production, taking social capital into account, could have increased economic growth further....

Measuring social capital: The Danish Cooperative Dairy Movement

DEFF Research Database (Denmark)

Svendsen, G.L.H.; Svendsen, Gert Tinggaard

2000-01-01

What are the roots of social capital and how can it be measured and built? Social capital is considered as a new production factor which must be added to the conventional concepts of human and physical capital. Social capital is productive because it increases the level of trust in a society and ...

Determinants of capital structure: An empirical study on Vietnamese listed firms

Directory of Open Access Journals (Sweden)

Le Trung Thanh

2017-05-01

Full Text Available This paper aims to explore the capital structure of listed Vietnamese companies in an updated context of financial development (the recent situation of domestic equity and debt capital market. By applying Random Effect model for panel data, we analyze 05 firm-specific and 01 country-specific determinants of capital structure based on the data set of 228 firms listed on Ho Chi Minh Stock Exchange during the period 2010 – 2014. The results indicated that The Pecking Order theory better explains the financing behaviors of Vietnamese listed firms. Accordingly, although in recent years, Vietnam’s equity market and corporate debt capital market have evolved considerably, the capital structure of Vietnamese companies are still dominated by the use of short-term financing sources. High-growth firms or large-sized firms still rely heavily on external debt rather than equity issuance while State-owned enterprises (SOE are reported to have positive association with the use of long-term financing sources. This study proposed some recommendations to the policymakers in two dimensions: improving the efficiency and role of capital markets to mitigate the reliance on short-term funds and ensuring that bank finance is allocated on a commercial basis.

Financial Crisis from the Trust and Loss Aversion Perspective in Emerging Romanian Capital Market

Directory of Open Access Journals (Sweden)

Antoniade-Ciprian ALEXANDRU

2011-07-01

Full Text Available In this paper we synthesized a study of financial crisis from the trust and loss aversion perspective on a particular case, Romanian emerging capital market. In a relative recent study we stopped with our data series at the level of 2008, November, but in this paper we continue our research until 2009, December. In a world-wide financial crisis and a global financial depreciation of stocks the emergent markets are much more affected that the lack of money and investors aversion. We study, based on efficient market theory, the evolution of portfolio structure in balanced funds. We are interesting to make an evaluation of present sentiment of investing money in capital markets and especially in stocks. Also, is necessary to determine which are the most important problems in this situation and seek an adequate stimulus for future development of direct investment.

27 CFR 46.195 - Floor stocks requirements.

Science.gov (United States)

2010-04-01

... Tubes Held for Sale on April 1, 2009 General § 46.195 Floor stocks requirements. (a) Take inventory. The dealer must establish the quantity of articles subject to the floor stocks tax held for sale on April 1, 2009. The dealer may take a physical inventory or may use a record (book) inventory, as specified in...

Human Capital Investment and the Completion of Risky R&D Projects

DEFF Research Database (Denmark)

Siyahhan, Baran; Engelbert, Dockner

2010-01-01

but can be observed during the R&D phase of the project. The exogenous value of the patent determines the firm’s decisions to invest in human capital, to abandon the project if nec- essary, and to invest in marketing the new product. We study the corresponding optimal stopping times, determine their value...... and risk consequences, and derive optimal investment in the stock of human capital. While optimal investment in human capital is very sensitive to its productivity do increase the probability of a breakthrough it is insensitive to changes in the volatility of the present value of the patent. The value...... of the firm is driven by fixed labor costs that occur until the breakthrough is made, the call option to invest in human capital and market the product, and the put option to abandon the project. These options together with labor costs’ based operating leverage determine the risk dynamics. Risk varies non...

Human Capital Investment and the Value of Risky R&D Projects

DEFF Research Database (Denmark)

Dockner, Engelbert; Siyahhan, Baran

be observed during the R&D phase of the project. The exogenous value of the patent determines the firm’s decisions to invest in human capital, to abandon the project if necessary, and to invest in marketing the new product. We study the corresponding optimal stopping times, determine their value and risk...... consequences, and derive optimal investment in the stock of human capital. While optimal investment in human capital is very sensitive to its productivity do increase the probability of a breakthrough it is insensitive to changes in the volatility of the present value of the patent. The value of the firm...... is driven by fixed labor costs that occur until the breakthrough is made, the call option to invest in human capital and market the product, and the put option to abandon the project. These options together with labor costs’ based operating leverage determine the risk dynamics. Firm risk is inverse U...

THEORETICAL AND METHODOLOGICAL PRINCIPLES OF THE STRATEGIC FINANCIAL ANALYSIS OF CAPITAL

Directory of Open Access Journals (Sweden)

Olha KHUDYK

2016-07-01

Full Text Available The article is devoted to the theoretical and methodological principles of strategic financial analysis of capital. The necessity of strategic financial analysis of capital as a methodological basis for study strategies is proved in modern conditions of a high level of dynamism, uncertainty and risk. The methodological elements of the strategic indicators, the factors, the methods of study, the subjects of analysis, the sources of incoming and outgoing information are justified in the system of financial management, allowing to improve its theoretical foundations. It is proved that the strategic financial analysis of capital is a continuous process, carried out in an appropriate sequence at each stage of capital circulation. The system of indexes is substantiated, based on the needs of the strategic financial analysis. The classification of factors determining the size and structure of company’s capital is grounded. The economic nature of capital of the company is clarified. We consider that capital is a stock of economic resources in the form of cash, tangible and intangible assets accumulated by savings, which is used by its owner as a factor of production and investment resource in the economic process in order to obtain profit, to ensure the growth of owners’ prosperity and to achieve social effect.

Development of an Executive Level Stock Fund Handbook

Science.gov (United States)

1990-09-01

appearance of a document. Format involves, among other matters, the typography and physical arrangement of the words of a document. However, not only...Concepts What Are Stock Funds? Unless you actually worked with stock funds before, your immediate reaction may be captured by the thought "smoke and

Strengthening the Regional Integration in Central and Eastern Europe through Cohesion Policy Instruments and Cooperation among Stock Exchanges

Directory of Open Access Journals (Sweden)

JULIA STEFANOVA

2014-05-01

Full Text Available The research paper is focused on the analysis of two ways of strengthening the regional integration in the Central and Eastern Europe – through the Cohesion policy instruments and cooperation among stock exchanges. Substantial benefits from the regional integration through cohesion policy include economic and social prosperity, political understanding. It should be further intensified, as it contributes to reduce regional disparities, exchange knowledge and best practices, ensure economic development. On the other hand, the deepening intra-regional cooperation among CEE stock exchanges leads to quantitative and qualitative changes in the course of their consolidation. Some assumptions are reached regarding expected changes on the Bulgarian capital market in the course of intensifying its intra-regional integrational links to CEE capital markets in conformity with set strategic priorities.

The Islamic Capital Market Response to the Real Earnings Management

Directory of Open Access Journals (Sweden)

Rita Yuliana

2017-06-01

Full Text Available This study aims to prove the effect of the company's status, i.e membership on the Islamic capital market and the status as suspect firm, as a determinant of real earnings management (REM. REM is conducted by abnormally increasing sales, increasing production and reducing discretionary costs in order to achieve a certain earnings target. This study uses Earnings Distribution Analysis (EDA technique, which refers to the Prospect Theory (Kahneman & Tversky, 1979 to identify the suspect firms. Suspect firms are companies that have small positive earnings. The samples of this research are companies listed on the Indonesia Stock Exchange in 2011 and 2012. Based on the result of regression analysis, hypothesis testing results show that the suspect firms conduct real earnings management in all three types of activities more aggressively than the non-suspect firms. Furthermore, this study also showed empirical evidence that there are differences in real earnings management actions between companies listed in the Islamic capital market compared to conventional capital markets. Then, this study also showed that the Islamic capital market is more appropriate in response to the REM than the conventional capital market.

Stock market development and integration in SADC (Southern African Development Community

Directory of Open Access Journals (Sweden)

Sunil K. Bundoo

2017-06-01

Full Text Available The paper analyses the extent of stock market integration in SADC by first analyzing beta and sigma convergence and then using cointegration analysis. The US market and the SSA index were used as benchmarks. The sample period was from January 1999 to December 2011 using daily market index data. We observe beta convergence but not sigma convergence; though the sigma values are falling for most of the SADC countries. Under normal conditions, no cointegrating vector was identified when using the US market as benchmark. When using the SSA index as benchmark one cointegrating vector was identified. The paper also takes stock of the extent of software and hardware stock market integration in SADC. The SADC stock exchanges must work towards greater integration so that they can attract more sustained portfolio flows rather than volatile portfolio flows and also greater FDI flows which are much needed for the financial and economic development of the SADC countries. We also need to consolidate and reduce the number of exchanges with the view to improve market capitalization, liquidity, market infrastructure, governance amongst others but most importantly to increase the visibility, robustness and reputation of SADC stock markets at the international level.

Cultural Capital and Teaching Ability Rating

DEFF Research Database (Denmark)

Jæger, Mads Meier

do not possess cultural capital. This paper uses extremely rich longitudinal data that provides a better basis than previous studies for holding ‘everything else’ constant. In addition to children and parents’ cultural capital, I control for children’s actual academic ability, physical appearance......, health impairments, social behaviour, antenatal influences, and many family background characteristics. My analysis shows, first, that both children and parents’ cultural capital have independent effects on teacher ability ratings. Second, for oral ability I find that parents’ cultural capital ‘protects...

Stock-specific advection of larval walleye (Sander vitreus) in western Lake Erie: Implications for larval growth, mixing, and stock discrimination

Science.gov (United States)

Fraker, Michael E.; Anderson, Eric J.; May, Cassandra J.; Chen, Kuan-Yu; Davis, Jeremiah J.; DeVanna, Kristen M.; DuFour, Mark R.; Marschall, Elizabeth A.; Mayer, Christine M.; Miner, Jeffery G.; Pangle, Kevin L.; Pritt, Jeremy J.; Roseman, Edward F.; Tyson, Jeffrey T.; Zhao, Yingming; Ludsin, Stuart A

2015-01-01

Physical processes can generate spatiotemporal heterogeneity in habitat quality for fish and also influence the overlap of pre-recruit individuals (e.g., larvae) with high-quality habitat through hydrodynamic advection. In turn, individuals from different stocks that are produced in different spawning locations or at different times may experience dissimilar habitat conditions, which can underlie within- and among-stock variability in larval growth and survival. While such physically-mediated variation has been shown to be important in driving intra- and inter-annual patterns in recruitment in marine ecosystems, its role in governing larval advection, growth, survival, and recruitment has received less attention in large lake ecosystems such as the Laurentian Great Lakes. Herein, we used a hydrodynamic model linked to a larval walleye (Sander vitreus) individual-based model to explore how the timing and location of larval walleye emergence from several spawning sites in western Lake Erie (Maumee, Sandusky, and Detroit rivers; Ohio reef complex) can influence advection pathways and mixing among these local spawning populations (stocks), and how spatiotemporal variation in thermal habitat can influence stock-specific larval growth. While basin-wide advection patterns were fairly similar during 2011 and 2012, smaller scale advection patterns and the degree of stock mixing varied both within and between years. Additionally, differences in larval growth were evident among stocks and among cohorts within stocks which were attributed to spatiotemporal differences in water temperature. Using these findings, we discuss the value of linked physical–biological models for understanding the recruitment process and addressing fisheries management problems in the world's Great Lakes.

THEORETICAL AND METHODOLOGICAL PRINCIPLES OF THE STRATEGIC FINANCIAL ANALYSIS OF CAPITAL

Directory of Open Access Journals (Sweden)

Olha KHUDYK

2016-07-01

Full Text Available The article is devoted to the theoretical and methodological principles of strategic financial analysis of capital. The necessity of strategic financial analysis of capital as a methodological basis for study strategies is proved in modern conditions of a high level of dynamism, uncertainty and risk. The methodological elements of the strategic financial analysis of capital (the object of investigation, the indicators, the factors, the methods of study, the subjects of analysis, the sources of incoming and outgoing information are justified in the system of financial management, allowing to improve its theoretical foundations. It is proved that the strategic financial analysis of capital is a continuous process, carried out in an appropriate sequence at each stage of capital circulation. The system of indexes is substantiated, based on the needs of the strategic financial analysis. The classification of factors determining the size and structure of company’s capital is grounded. The economic nature of capital of the company is clarified. We consider that capital is a stock of economic resources in the form of cash, tangible and intangible assets accumulated by savings, which is used by its owner as a factor of production and investment resource in the economic process in order to obtain profit, to ensure the growth of owners’ prosperity and to achieve social effect.

Market reaction to grouping equities in stock markets: An empirical analysis on Borsa Istanbul

Directory of Open Access Journals (Sweden)

Yilmaz Yildiz

2017-12-01

Full Text Available The main aim of this study is to investigate the market reaction to stock grouping announcements in Borsa Istanbul which requires stocks to be classified into groups “A”, “B” and “C” according to their market capitalization and floating rates. By utilizing event study analysis, our results suggest that grouping announcements have significant effect on stock prices and trading volume. The event day positive (negative relationship between abnormal return and volume for the upgraded (downgraded stocks supports the downward sloping demand curve hypothesis. Moreover, findings also suggest that stocks which are upgraded to Group A are exposed to more attention which is in line with the attention hypothesis. The reverse is valid for the downgraded firms. We find no evidence of price reversals and long-term symmetrical liquidity effect which lead us to reject price pressure and liquidity hypotheses. Finally, we reach controversial evidence for the information hypothesis. Keywords: Equity grouping, Regulation, Price and volume effects, Jel Classification: G11, G12, G14

Tax Revenue, Stock Market and Economic Growth of Pakistan

OpenAIRE

Muhammad Irfan Javaid Attari; Roshaiza Taha; Muhammad Imran Farooq

2014-01-01

The purpose of this paper is to examine the effects of capital market and fiscal policy influences in determining the nexus of economic growth in Pakistan from July 2003 to July 2012. The authors utilize ADF unit root test, Johansen Cointegration test, VECM test, Granger causality test and variance decomposition analysis to test the relationship among tax revenue, stock market and economic growth in Pakistan. Granger causality analysis is used to answer questions whether “Does tax revenue cau...

A New Decision-Making Method for Stock Portfolio Selection Based on Computing with Linguistic Assessment

Directory of Open Access Journals (Sweden)

Chen-Tung Chen

2009-01-01

Full Text Available The purpose of stock portfolio selection is how to allocate the capital to a large number of stocks in order to bring a most profitable return for investors. In most of past literatures, experts considered the portfolio of selection problem only based on past crisp or quantitative data. However, many qualitative and quantitative factors will influence the stock portfolio selection in real investment situation. It is very important for experts or decision-makers to use their experience or knowledge to predict the performance of each stock and make a stock portfolio. Because of the knowledge, experience, and background of each expert are different and vague, different types of 2-tuple linguistic variable are suitable used to express experts' opinions for the performance evaluation of each stock with respect to criteria. According to the linguistic evaluations of experts, the linguistic TOPSIS and linguistic ELECTRE methods are combined to present a new decision-making method for dealing with stock selection problems in this paper. Once the investment set has been determined, the risk preferences of investor are considered to calculate the investment ratio of each stock in the investment set. Finally, an example is implemented to demonstrate the practicability of the proposed method.

Quantum Brownian motion model for the stock market

Science.gov (United States)

Meng, Xiangyi; Zhang, Jian-Wei; Guo, Hong

2016-06-01

It is believed by the majority today that the efficient market hypothesis is imperfect because of market irrationality. Using the physical concepts and mathematical structures of quantum mechanics, we construct an econophysical framework for the stock market, based on which we analogously map massive numbers of single stocks into a reservoir consisting of many quantum harmonic oscillators and their stock index into a typical quantum open system-a quantum Brownian particle. In particular, the irrationality of stock transactions is quantitatively considered as the Planck constant within Heisenberg's uncertainty relationship of quantum mechanics in an analogous manner. We analyze real stock data of Shanghai Stock Exchange of China and investigate fat-tail phenomena and non-Markovian behaviors of the stock index with the assistance of the quantum Brownian motion model, thereby interpreting and studying the limitations of the classical Brownian motion model for the efficient market hypothesis from a new perspective of quantum open system dynamics.

Linking social capital, cultural capital and heterotopia at the folk festival

Directory of Open Access Journals (Sweden)

Linda Wilks

2016-06-01

Full Text Available This paper investigates the role of folk festivals in transforming interconnections between people, space and culture. It interlinks three sets of theoretical ideas: social capital, cultural capital and heterotopia to suggest a new conceptual framework that will help to frame a deeper understanding of the nature of celebration. Qualitative data were collected at two long-established folk festivals, Sidmouth Folk Festival in southern England and the Feakle Traditional Music Festival in western Ireland, in order to investigate these potential links. Although Foucault did not fully develop the concept of heterotopia, his explanation that heterotopias are counter-sites, which, unlike utopias, are located in real, physical, space-time, has inspired others, including some festival researchers, to build on his ideas. This study concludes that the heterotopian concept of the festival as sacred space, with the stage as umbilicus, may be linked to the building of social capital; while it is suggested that both social capital and appropriate cultural capital are needed to gain full entry to the heterotopia.

Dominating clasp of the financial sector revealed by partial correlation analysis of the stock market.

Science.gov (United States)

Kenett, Dror Y; Tumminello, Michele; Madi, Asaf; Gur-Gershgoren, Gitit; Mantegna, Rosario N; Ben-Jacob, Eshel

2010-12-20

What are the dominant stocks which drive the correlations present among stocks traded in a stock market? Can a correlation analysis provide an answer to this question? In the past, correlation based networks have been proposed as a tool to uncover the underlying backbone of the market. Correlation based networks represent the stocks and their relationships, which are then investigated using different network theory methodologies. Here we introduce a new concept to tackle the above question--the partial correlation network. Partial correlation is a measure of how the correlation between two variables, e.g., stock returns, is affected by a third variable. By using it we define a proxy of stock influence, which is then used to construct partial correlation networks. The empirical part of this study is performed on a specific financial system, namely the set of 300 highly capitalized stocks traded at the New York Stock Exchange, in the time period 2001-2003. By constructing the partial correlation network, unlike the case of standard correlation based networks, we find that stocks belonging to the financial sector and, in particular, to the investment services sub-sector, are the most influential stocks affecting the correlation profile of the system. Using a moving window analysis, we find that the strong influence of the financial stocks is conserved across time for the investigated trading period. Our findings shed a new light on the underlying mechanisms and driving forces controlling the correlation profile observed in a financial market.

THE APPLICATION OF THE CAPITAL ASSET PRICING MODEL ON THE CROATIAN CAPITAL MARKET

Directory of Open Access Journals (Sweden)

Bojan Tomic

2013-12-01

Full Text Available The paper describes and analyzes the application of the capital asset pricing model (CAPM and the single-index model on the Zagreb stock exchange during the drop in the total trade turnover, and mostly in the trade of equity securities. This model shows through the analysis techniques used to estimate the systematic risk per share compared to the market portfolio. Also, the model quantifies the environment in which a company and its stocks exist, expressing it as risk, or a beta coefficient. Furthermore, with respect to the market stagnation, one can also discuss the usefulness of the model, especially if the quality of the input data is questionable. In this regard, the importance of the proper application and interpretation of the results obtained based on the model during the stagnation of the market, and especially during the stagnation of the trade of equity securities, is gaining even greater importance and significance. On the other hand, the results obtained through the analysis of data point to problems arising during the application of the model. It turns out the main problem of applying the CAPM model is the market index with negative returns during the observation period.

The Reaction of the WIG Stock Market Index to Changes in the Interest Rates on Bank Deposits

Directory of Open Access Journals (Sweden)

Grzegorz Przekota

2010-01-01

Full Text Available Determination of the relationship between the money market and capital market is particularly important from the point of view of taking a decision on the location of investment capital. It may help to forecast future states. This study seeks to determine the relationship of the interest rate on deposits in zloty with the WIG stock index and the volume of turnover on the Warsaw Stock Exchange. Analysis of correlation and VAR models are used. Analysis of long-term correlation indicates a negative relationship between the interest rate on deposits in banks and the value of the WIG stock-index. However, this may be spurious. The dependence between these variables may be more complex and should rather be seen as short term. It seems that in general the impact of an increase in interest rates on the value of the WIG index is negative in the short term, just as in the long term. In addition, in the short term these variables can move in the same direction. The results obtained in the research are consistent with results obtained for other national markets. This applies in particular to the relatively weak, negative correlation described above. (original abstract

The Differences Between Stock Splits and Stock Dividends

DEFF Research Database (Denmark)

Bechmann, Ken L.; Raaballe, Johannes

It is often asserted that stock splits and stock dividends are purely cosmetic events. However, many studies have documented several stock market effects associated with stock splits and stock dividends. This paper examines the effects of these two types of events for the Danish stock market...... different. Second, the positive stock market reaction is closely related to associated changes in a firm's payout policy, but the relationship varies for the two types of events. Finally, there is only very weak evidence for a change in the liquidity of the stock. On the whole, after controlling...... for the firm's payout policy, the results suggest that a stock split is a cosmetic event and that a stock dividend on its own is considered negative news....

Financial innovation in the public real estate market : How to exploit arbitrage opportunities in public real estate pricing due to investment approach differences between the real estate market and the capital market

OpenAIRE

Gejler, Jacob

2013-01-01

As the stock market is volatile and often short-term, there is a high demand for safe investments outside the stock market and institutional investors like pension funds, insurance companies and asset managers are increasingly searching for low-risk investments that can deliver safe returns.   Alternative investments, like real estate, are a popular way to invest institutional capital. However, debates whether pension savers should have the right to transfer their pension capital without rest...

Application of Markowitz Portfolio Theory by Building Optimal Portfolio on the US Stock Market

Directory of Open Access Journals (Sweden)

Martin Širůček

2015-01-01

Full Text Available This paper is focused on building investment portfolios by using the Markowitz Portfolio Theory (MPT. Derivation based on the Capital Asset Pricing Model (CAPM is used to calculate the weights of individual securities in portfolios. The calculated portfolios include a portfolio copying the benchmark made using the CAPM model, portfolio with low and high beta coefficients, and a random portfolio. Only stocks were selected for the examined sample from all the asset classes. Stocks in each portfolio are put together according to predefined criteria. All stocks were selected from Dow Jones Industrial Average (DJIA index which serves as a benchmark, too. Portfolios were compared based on their risk and return profiles. The results of this work will provide general recommendations on the optimal approach to choose securities for an investor’s portfolio.

Social capital, trust, and firm performance: the value of corporate social responsibility during the financial crisis

OpenAIRE

Lins, K V; Servaes, H; Tamayo, A

2017-01-01

During the 2008-2009 financial crisis, firms with high social capital, measured as corporate social responsibility (CSR) intensity, had stock returns that were four to seven percentage points higher than firms with low social capital. High-CSR firms also experienced higher profitability, growth, and sales per employee relative to low-CSR firms, and they raised more debt. This evidence suggests that the trust between the firm and both its stakeholders and investors, built through investments i...

Estimating the Value-at-Risk for some stocks at the capital market in Indonesia based on ARMA-FIGARCH models

Science.gov (United States)

Sukono; Lesmana, E.; Susanti, D.; Napitupulu, H.; Hidayat, Y.

2017-11-01

Value-at-Risk has already become a standard measurement that must be carried out by the financial institution for both internal interest and regulatory. In this paper, the estimation of Value-at-Risk of some stocks with econometric models approach is analyzed. In this research, we assume that the stock return follows the time series model. To do the estimation of mean value we are using ARMA models, while to estimate the variance value we are using FIGARCH models. Furthermore, the mean value estimator and the variance are used to estimate the Value-at-Risk. The result of the analysis shows that from five stock PRUF, BBRI, MPPA, BMRI, and INDF, the Value-at-Risk obtained are 0.01791, 0.06037, 0.02550, 0.06030, and 0.02585 respectively. Since Value-at-Risk represents the maximum risk size of each stock at a 95% level of significance, then it can be taken into consideration in determining the investment policy on stocks.

Determinants of dividend policy: Evidence from listed firms in the African stock exchanges

Directory of Open Access Journals (Sweden)

Nnadi Matthias

2013-01-01

Full Text Available The study demonstrates that much of the existing theoretical literature on dividend policy can be applied to the emerging capital markets of Africa. Using available financial data of listed firms in the 29 stock exchanges in Africa, the study finds similarities in the determinants of dividend policy in African firms with those in most developed economies. In particular, agency costs are found to be the most dominant determinant of dividend policy among African firms. The finding is non-synonymous with emerging capital markets which have a high concentration of private ownership and trading volumes. Agency cost theory may be important in both emerging and developed capital markets but the nature of the agency problem may be different in each case. Other factors such as level of market capitalization, age and growth of firms, as well as profitability also play key roles in the dividend policy of listed African firms.

Impact of stock market structure on intertrade time and price dynamics.

Science.gov (United States)

Ivanov, Plamen Ch; Yuen, Ainslie; Perakakis, Pandelis

2014-01-01

We analyse times between consecutive transactions for a diverse group of stocks registered on the NYSE and NASDAQ markets, and we relate the dynamical properties of the intertrade times with those of the corresponding price fluctuations. We report that market structure strongly impacts the scale-invariant temporal organisation in the transaction timing of stocks, which we have observed to have long-range power-law correlations. Specifically, we find that, compared to NYSE stocks, stocks registered on the NASDAQ exhibit significantly stronger correlations in their transaction timing on scales within a trading day. Further, we find that companies that transfer from the NASDAQ to the NYSE show a reduction in the correlation strength of transaction timing on scales within a trading day, indicating influences of market structure. We also report a persistent decrease in correlation strength of intertrade times with increasing average intertrade time and with corresponding decrease in companies' market capitalization-a trend which is less pronounced for NASDAQ stocks. Surprisingly, we observe that stronger power-law correlations in intertrade times are coupled with stronger power-law correlations in absolute price returns and higher price volatility, suggesting a strong link between the dynamical properties of intertrade times and the corresponding price fluctuations over a broad range of time scales. Comparing the NYSE and NASDAQ markets, we demonstrate that the stronger correlations we find in intertrade times for NASDAQ stocks are associated with stronger correlations in absolute price returns and with higher volatility, suggesting that market structure may affect price behavior through information contained in transaction timing. These findings do not support the hypothesis of universal scaling behavior in stock dynamics that is independent of company characteristics and stock market structure. Further, our results have implications for utilising transaction timing

Expensing stock options: a fair-value approach.

Science.gov (United States)

Kaplan, Robert S; Palepu, Krishna G

2003-12-01

Now that companies such as General Electric and Citigroup have accepted the premise that employee stock options are an expense, the debate is shifting from whether to report options on income statements to how to report them. The authors present a new accounting mechanism that maintains the rationale underlying stock option expensing while addressing critics' concerns about measurement error and the lack of reconciliation to actual experience. A procedure they call fair-value expensing adjusts and eventually reconciles cost estimates made at grant date with subsequent changes in the value of the options, and it does so in a way that eliminates forecasting and measurement errors over time. The method captures the chief characteristic of stock option compensation--that employees receive part of their compensation in the form of a contingent claim on the value they are helping to produce. The mechanism involves creating entries on both the asset and equity sides of the balance sheet. On the asset side, companies create a prepaid-compensation account equal to the estimated cost of the options granted; on the owners'-equity side, they create a paid-in capital stock-option account for the same amount. The prepaid-compensation account is then expensed through the income statement, and the stock option account is adjusted on the balance sheet to reflect changes in the estimated fair value of the granted options. The amortization of prepaid compensation is added to the change in the option grant's value to provide the total reported expense of the options grant for the year. At the end of the vesting period, the company uses the fair value of the vested option to make a final adjustment on the income statement to reconcile any difference between that fair value and the total of the amounts already reported.

Student's Work: Social Capital in the Czech Republic and Public Policy Implications

Directory of Open Access Journals (Sweden)

Michal Vodrážka

2009-06-01

Full Text Available Social capital in Eastern Europe has received a fair amount of scholarly attention in recent years, including in the Czech Republic. This paper examines the stock of macro-level social capital in the Czech Republic in comparative European perspective. The notions of “missing” social capital and corruption as negative social capital are explored. The corruption situation in the Czech Republic and the progress in curbing it that was made in the last decade are evaluated. Regressions run with data from the World Value Survey and the Corruption Perception Index show that economic growth does not translate into correspondingly lower levels of corruption in the Czech case. State bureaucracy is identified as a possible reason for the failure to curb corruption successfully. Public policy recommendations and their usefulness for the Czech Republic are debated and a civil service reform is proposed as the most appropriate policy for addressing the situation.

THE IMPORTANCE OF HUMAN CAPITAL IN THE STRATEGIC DEVELOPMENT OF AN ORGANIZATION

Directory of Open Access Journals (Sweden)

Adriana Grigorescu

2016-06-01

Full Text Available In this new world where the level of information has reached overwhelming thanks to new technologies , the human capital embodied in a stock value, skill and knowledge, becomes the main factor of production in the new economy. In this paper I have tried to emphasize that, this relatively new concept such as human capital has become the main motor of organizational development, representing one of the most important advantages of firms to work properly in their environments. The economic growth is conditioned by human capital development; current trends are changing and organizations change their outward form of thought and action and they enhance their human capital (this intangible asset too little highlighted and measured from the desire of being more flexible and easily assimilated by the market in the future. For modern companies, human capital has become a “golden coin” with 2 sides called: 1 capability (the ability to provide solutions to customers through knowledge, skills, know-how, and talent; 2 attitude (the ability to profitably use these values of the organization. In conclusion, human capital is measured using IQ and the productivity of modern economies depend largely on investment in knowledge and skills, although statistics in Romania do not include costs and expenses of human capital.

Investor Reaction to Mandatory Offers on the Warsaw Stock Exchange

Directory of Open Access Journals (Sweden)

Szymon Okoń

2012-06-01

Full Text Available The following paper aims to assess investor reaction to mandatory offers on the Warsaw Stock Exchange, which is important because knowledge about these reactions can be used to make better investment decisions. This paper highlights the importance of procedure in making a mandatory offer and its grounds in the Polish legal system. Additionally, it presents empirical research on the reactions of investors to mandatory offers on the Warsaw Stock Exchange. It has been provided that mandatory offers have a significant impact on the price of a company’s shares listed on the Warsaw Stock Exchange. Knowledge about the reactions of investors to a mandatory offer may be used when selecting securities for an investment portfolio. The findings may provide guidance in deciding whether to begin or end investment in the company, both for individual and institutional investors. The event study methodology approach used in the paper is regarded as valuable and can be the basis for further research in other areas of the capital market research, especially in the context of information efficiency.

Evaluation of Effect of Global Economic Meltdown on Capital Market Performance

Directory of Open Access Journals (Sweden)

ONAOLAPO ADEKUNLE RAHMAN

2013-07-01

Full Text Available The recent financial crisis that loomed the global economy was considered more inclusive than any other period of financial turmoil in the past 60 years. This paper evaluates the implications of the global economic meltdown on the Nigerian Capital Market Performance using the market capitalization of the Nigerian Stock Exchange as a major indicator. When the global economic meltdown came, it poses a recession on the Market Capitalization and the volume of share index of the Nation. This study depends entirely on secondary data in form of annual aggregate time series data of Market capitalization (dependent variable, exchange rate, interest rate, inflation rate, market share index with Dummy variable to represent the period of economic crisis. Ordinary least square of multiple regressions was used to analyze the data into econometric model while F-statistics was used to test for the formulated hypothesis. This study depicts that the global economic meltdown has a negative effect on the Capital Market Performance. It was therefore recommended that the Federal government and the regulatory agencies (CBN, NSE, SEC etc. should come up with intervention and fiscal policies that will suppress these effects and jumpstart the capital market and that the policies should be properly implemented and monitored.

Mandatory International Financial Reporting Standards Adoption and Cost of Equity Capital in Nigeria

Directory of Open Access Journals (Sweden)

Uwuigbe Uwalomwa

2016-05-01

Full Text Available This study examined the effect of mandatory International Financial Reporting Standards (IFRS adoption on the cost of equity capital on Nigerian firms and whether the cost of equity capital effect after adoption of IFRS can be moderated by Return on Equity. The study covered a sample of 11 listed companies in the industrial goods sector for the period 2011 and 2013. The data for the study was secondary data generated from the annual reports and stock market report websites. The cost of equity capital was shown as the expected return on the basic value of a share and computed based on pre and post-adoption data. Findings from the study revealed that there is a significant positive relationship between the cost of equity capital and IFRS adoption indicating that the cost of equity capital increased. The market-based performance measure failed to have significant effect on the cost of equity capital after mandatory adoption. The study recommends that policies that improve domestic savings, as a principal source of equity capital, be enacted as an increase should lead to a reduction in the cost of equity capital, interest rates and increase the appeal of equity and foreign investments.

Comparative Study between Capital Asset Pricing Model and Arbitrage Pricing Theory in Indonesian Capital Market during Period 2008-2012

Directory of Open Access Journals (Sweden)

Leo Julianto

2015-09-01

Full Text Available For decades, there were many models explaining the returns earned emerged in order to fulfil the curiosity had by human. Since then, various studies and empirical findings in many countries’ stock market showedthat the empirical findings of market return explanation and the return of assets meet the different results in both clarify of model and identification of significant determinant variables.Therefore, many comparative studies between models were accomplished. In this study, the author attempts to do comparative study between two models, APT and CAPM, in Indonesian Capital Market during period 2008 until 2012.  Besides, the author also attempts to find how much inflation, interest rate, and exchange rate describe the returns earned in each sector existed in Indonesia Capital Market. As the result, the author find out that CAPM has bigger explanation power than APT in Indonesian Capital Market during period 2008-2012. Besides, the author also found that among macroeconomic factors, there are only two macroeconomic factors that can affect certain samples significantly.  They are change in BI rate, which affect AALI, ANTM, ASII, TLKM, UNTR, and change in exchange rate, which affect INDF and TLKM significantly.

Empirical Evidence on the Role of Trading Suspensions in Disseminating New Information to the Capital Market

NARCIS (Netherlands)

Engelen, Peter-Jan; Kabir, Mohammed Rezaul

2006-01-01

This paper examines the effect of temporarily suspending the trading of exchange-listed individual stocks. We evaluate whether regulatory authorities can successfully use the mechanism of trading suspension in forcing companies to disclose new and material information to the capital market. Previous

Capital humain et croissance : Evidences sur les données de pays Africains

OpenAIRE

Dorothée Boccanfuso; Luc Savard; Bernice E. Savy

2009-01-01

La théorie économique a pendant longtemps admis une relation positive entre le capital humain et la croissance économique (Smith, 1776 ; Becker, 1964) qui sera remise en cause à la fin des années 90 dans plusieurs études (Caselli et al., 1996 ; Pritchett, 2001). Parmi les faiblesses identifiées par ces auteurs, la critique relative à l’utilisation du nombre moyen d’années d’étude comme proxy utilisé pour évaluer le stock de capital humain est souvent avancée. La non prise en considération des...

Stock-outs of essential health products in Mozambique-longitudinal analyses from 2011 to 2013

Science.gov (United States)

Wagenaar, Bradley H.; Gimbel, Sarah; Hoek, Roxanne; Pfeiffer, James; Michel, Cathy; Manuel, João Luis; Cuembelo, Fatima; Quembo, Titos; Afonso, Pires; Gloyd, Stephen; Sherr, Kenneth

2015-01-01

objectives To assess the relationship between health system factors and facility-level EHP stock-outs in Mozambique. methods Service provisions were assessed in 26 health facilities and 13 district warehouses in Sofala Province, Mozambique, from July to August in 2011–2013. Generalised estimating equations were used to model factors associated with facility-level availability of essential drugs, supplies and equipment. results Stock-out rates for drugs ranged from 1.3% for oral rehydration solution to 20.5% for Depo-Provera and condoms, with a mean stock-out rate of 9.1%; mean stock-out rates were 15.4% for supplies and 4.1% for equipment. Stock-outs at the district level accounted for 27.1% (29/107) of facility-level drug stock-outs and 44.0% (37/84) of supply stock-outs. Each 10-km increase in the distance from district distribution warehouses was associated with a 31% (CI: 22–42%), 28% (CI: 17–40%) or 27% (CI: 7–50%) increase in rates of drug, supply or equipment stock-outs, respectively. The number of heath facility staff was consistently negatively associated with the occurrence of stock-outs. conclusions Facility-level stock-outs of EHPs in Mozambique are common and appear to disproportionately affect those living far from district capitals and near facilities with few health staff. The majority of facility-level EHP stock-outs in Mozambique occur when stock exists at the district distribution centre. Innovative methods are urgently needed to improve EHP supply chains, requesting and ordering of drugs, facility and district communication, and forecasting of future EHP needs in Mozambique. Increased investments in public-sector human resources for health could potentially decrease the occurrence of EHP stock-outs. PMID:24724617

Towards Ontology as Knowledge Representation for Intellectual Capital Measurement

Science.gov (United States)

Zadjabbari, B.; Wongthongtham, P.; Dillon, T. S.

For many years, physical asset indicators were the main evidence of an organization’s successful performance. However, the situation has changed after information technology revolution in the knowledge-based economy. Since 1980’s business performance has not been limited only to physical assets instead intellectual capital are increasingly playing a major role in business performance. In this paper, we utilize ontology as a tool for knowledge representation in the domain of intellectual capital measurement. The ontology classifies ways of intangible capital measurement.

136 Tax Revenue, Stock Market and Economic Growth of Pakistan

OpenAIRE

Muhammad Irfan Javaid Attari; Roshaiza Taha; Muhammad Imran Farooq

2014-01-01

The purpose of this paper is to examine the effects of capital market and fiscal policy influences in determining the nexus of economic growth in Pakistan from July 2003 to July 2012. The authors utilize ADF unit root test, Johansen Cointegration test, VECM test, Granger causality test and variance decomposition analysis to test the relationship among tax revenue, stock market and economic growth in Pakistan. Granger causality analysis is used to answer questions whether “Does ...

An Empirical Analysis of Stock Market Development and Economic Growth: The Case of Macedonia

Directory of Open Access Journals (Sweden)

Lazarov Darko

2016-12-01

Full Text Available This paper has two goals. The first goal is to investigate the influence of stock market development on economic growth for a group of 14 transition economies from the Central and South-East European (CSEE region in the period 2002-2012, while the second is to analyze the main characteristics and specificities of the stock market in the Republic of Macedonia. To fulfil the first goal, we apply panel regression models (fixed and random effects and a dynamic panel model (Generalized Method of Moments – GMM, while we use a single country approach and comparative analysis to examine the main characteristics of the Macedonian stock market. The estimated results indicate that stock market development is positive and significantly correlated with economic growth. Additionally, the comparative analysis of the stock market in the Republic of Macedonia suggests that the Macedonian stock market is still underdeveloped and faces a number of challenges before it can enter a new phase of development after the negative impact of the global financial crisis. Those challenges include capital market regional integration and the harmonization of legal and institutional frameworks such as bankruptcy procedures, accounting and reporting standards, public sector regulatory bodies, corporate governance and a liberalized trade regime.

THE ROAD OF ROMANIA FROM FRONTIER TOWARDS EMERGING CAPITAL

Directory of Open Access Journals (Sweden)

BELCIC-ŞTEFAN IULIA-OANA

2015-08-01

Full Text Available In the present study I first present the classification system of states by international financial institutions on economic and financial criteria, then focusing on the classification made by Morgan Stanley Capital International. According to it the capital market in Romania is currently a frontier one, the Financial Surveillance Authority pursuing the reclassification as an emerging capital market by August 2016. The findings of the study indicate this term as unrealistic, for several reasons. Thus, curently on the Romanian stock market there are only two entities out of 3 minimum required, respectively S.N.G.N Romgaz and Fondul Proprietatea, which fully meet the size and liquidity requirements imposed by MSCI in order to be reclassified as an emerging capital market. Also it is mandatory making significant progress regarding the effectiveness of the operational framework, progress made to some extent through Project S.T.E.A.M. (Set of actions Towards Establishing and Acknowledgment of the emerging Market status. On this project, after analyzing the degree of completion of the proposed measures in order to reach the primary and secondary objectives, whose deadlines have expired, according to the schedule provided, we found that only 69% of them were fulfilled. Given these considerations I can state that Romania could be reclassified as an emerging capital market at the earliest starting with 2017.

The capitalization of the accounting information in the process of stocks analyse

OpenAIRE

ciumag, anca

2009-01-01

The information is justifying its importance by the fact that its detailed aspects which contains can lead to signified economies and to the fusion of the stocking operations and procedures, when it is used the elaboration of decisions. The most complex structure, as data basis offered to the economic analysts, is represented by the accounting whose ability of coverage of the economic phenomena and processes, as well as of the patrimony existence in analytical and synthetic information, ...

THE SPECIFIC ACCOUNTING TREATMENTS REGARDING STOCKS

Directory of Open Access Journals (Sweden)

PALIU – POPA LUCIA

2014-10-01

Full Text Available The process of harmonization and convergence of IFRS – U.S. GAAP represents a significant advance in the approach of internationally recognized accounting referential frames, context where the accounting system in our country – undergoing internationalization and Europeanization – also experiences the assimilation of harmonization and convergence products between the two accounting standardizations worldwide. Looking from this perspective, we can say that no nation has the right to be considered superior in accounting, as several steps need to be taken in different countries in order to reach a level of compliance on a global scale – desirable. Because companies have expanded their boundaries and tus increasing the importance of managerial communication and the increasingly deeper globalization of capital markets requires and imposes the global use of a single accounting language, we deemed it useful to conduct a study regarding the main differences between the national accounting regulations and the provisions of the international reference frame on stocks, as the users of information from the financial statements seek to evaluate the profitability of the company in general, but also in terms of its risk of illiquidity, as stocks are an important component of an entity's assets. In this respect, we will address the stocks in terms of the main differences between the national accounting regulations, the provisions of the international reference frame, and the economic and financial indicators – expression of different accounting treatments.

An approximate approach for the joint problem of level of repair analysis and spare parts stocking

NARCIS (Netherlands)

Basten, R.J.I.; Heijden, van der M.C.; Schutten, J.M.J.

2011-01-01

For the spare parts stocking problem, generally metric type methods are used in the context of capital goods. Implicitly, a decision is assumed on which components to discard and which to repair upon failure, and where to perform repairs. In the military world, this decision is taken explicitly

An approximate approach for the joint problem of level of repair analysis and spare parts stocking.

NARCIS (Netherlands)

Basten, Robertus Johannes Ida; van der Heijden, Matthijs C.; Schutten, Johannes M.J.

2011-01-01

For the spare parts stocking problem, generally metric type methods are used in the context of capital goods. Implicitly, a decision is assumed on which components to discard and which to repair upon failure, and where to perform repairs. In the military world, this decision is taken explicitly

Corruption, political culture and negative social capital in Brazil

Directory of Open Access Journals (Sweden)

Marcello Baquero

2015-08-01

Full Text Available One of the problems in strengthening Brazilian democracy has been the endurance of continued corruption on the part of state officials. The result has been the institutionalization of a political culture, which shows a growing alienation, and apathy of citizens regarding politics. This behavior has its origins in citizens´ perception that the state and public authorities cannot be trusted producing an inertial democracy with low stocks of social capital. The purpose of this paper is to examine the relationship between corruption practices by state authorities and the structuring of a defective political culture in Brazil. The working hypothesis is that serious cases of institutionalized corruption are possible due to invisible social ties created among public authorities, producing social capital of a negative nature, which constraints the effective advancements in Brazilian democracy.

Analysis of stock market anomalies: US cross-sectoral comparison

OpenAIRE

Jílek, Lukáš

2012-01-01

The purpose of this thesis is to analyze anomalies in the US stock market. Special attention is put on Day of the week effect, January effect, and Part of the month effect. We focus on comparison of companies with low and high capitalization. We perform an analysis across 6 major industrial sectors. Then, we discuss the findings with results of past projects and finally, we try to find a speculative investment strategy. We found out that neither Day of the week effect nor January effect do no...

Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis

Directory of Open Access Journals (Sweden)

Arief Tri Hardiyanto

2013-04-01

Full Text Available Capital structure is a mix of debts and equities used by a company to finance its investment. Debt offers benefit of tax shield from interest expenses that can be deducted in calculating company income tax. Unfortunately, company can not use debts in unlimited amount because it will lead to risk of bankcrupt. Therefore, company needs to establish a target (unobserved capital structure which will optimize the value of the firm. The purpose of this study is to investigate the determinant of capital structure and ownership in public listed companies in Indonesia Stock Exchange using Time-Series Cross-Section Regression (TSCSREG and supported with a balanced panel data. Data used are financial statements of 228 public listed companies from group of eight industry sectors. Research finding confirms that tax shield and fixed financial burden are significantly influence the capital structure and state ownership also significantly influence the capital structure of the state owned enterprises.

Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis

Directory of Open Access Journals (Sweden)

Arief Tri Hardiyanto

2013-04-01

Full Text Available Capital structure is a mix of debts and equities used by a company to finance its investment. Debt offers benefit of tax shield from interest expenses that can be deducted in calculating company income tax. Unfortunately, company can not use debts in unlimited amount because it will lead to risk of bankcrupt. Therefore, company needs to establish a target (unobserved capital structure which will optimize the value of the firm. The purpose of this study is to investigate the determinant of capital structure and ownership in public listed companies in Indonesia Stock Exchange using Time-Series CrossSection Regression (TSCSREG and supported with a balanced panel data. Data used are financial statements of 228 public listed companies from group of eight industry sectors. Research finding confirms that tax shield and fixed financial burden are significantly influence the capital structure and state ownership also significantly influence the capital structure of the state owned enterprises.

Faktor-Faktor yang Mempengaruhi Pengungkapan Intellectual Capital Pada Perusahaan Property dan Real Estate

Directory of Open Access Journals (Sweden)

Soraya faradina

2016-01-01

Full Text Available The purpose of this research is to find out the effect of firm age, firm size, leverage, profitability and concentration of ownership on intellectual capital disclosure. The sample of this study is from property and real estate firm that listed on Indonesian Stock Exchange from 2010 until 2014. This research using purposive sampling method, to determine the sample of this research with 80 companies as population and 16 companies as sample. This research using multiple linear regression analyzed method by SPSS program version 22 for windows. Partially, the results of this research indicate that only firm size has an effect on intellectual capital disclosure, while firm age, leverage, profitability and concentration of ownership do not have an effect on intellectual capital disclosure. The result also indicates that firm age, firm size, leverage, profitability and concentration of ownership simultaneously have an effect on intellectual capital disclosure.DOI: 10.15408/ess.v5i2.2350

136 Tax Revenue, Stock Market and Economic Growth of Pakistan

Directory of Open Access Journals (Sweden)

Muhammad Irfan Javaid Attari

2014-10-01

Full Text Available The purpose of this paper is to examine the effects of capital market and fiscal policy influences in determining the nexus of economic growth in Pakistan from July 2003 to July 2012. The authors utilize ADF unit root test, Johansen Cointegration test, VECM test, Granger causality test and variance decomposition analysis to test the relationship among tax revenue, stock market and economic growth in Pakistan. Granger causality analysis is used to answer questions whether “Does tax revenue cause the economic growth?” or “Does tax revenue cause the capital market?”. The results demonstrate that there is a bidirectional casualty between tax revenue and economic growth; and a unidirectional causality from capital market to tax revenue. The estimated result shows that growth of Pakistan economy is strongly contributed from the high collection of direct tax revenue and the development of financial market activity. The findings of this paper have important implications to current and potential investors in Pakistan economy to understand the economic condition of Pakistan and to assist them in making their investment decision.

Testing Capital Asset Pricing Model: Empirical Evidences from Indian Equity Market

Directory of Open Access Journals (Sweden)

Kapil CHOUDHARY

2010-11-01

Full Text Available The present study examines the Capital Asset Pricing Model (CAPM for the Indian stock market using monthly stock returns from 278 companies of BSE 500 Index listed on the Bombay stock exchange for the period of January 1996 to December 2009. The findings of this study are not substantiating the theory’s basic result that higher risk (beta is associated with higher levels of return. The model does explain, however, excess returns and thus lends support to the linear structure of the CAPM equation. The theory’s prediction for the intercept is that it should equal zero and the slope should equal the excess returns on the market portfolio. The results of the study lead to negate the above hypotheses and offer evidence against the CAPM. The tests conducted to examine the nonlinearity of the relationship between return and betas bolster the hypothesis that the expected return-beta relationship is linear. Additionally, this study investigates whether the CAPM adequately captures all-important determinants of returns including the residual variance of stocks. The results exhibit that residual risk has no effect on the expected returns of portfolios.

OWNERSHIP AND CAPITAL STRUCTURE OF PAKISTANI NON-FINANCIAL FIRMS

Directory of Open Access Journals (Sweden)

Khan Shoaib

2016-07-01

Full Text Available Existi ng literature has not yet defi ned a clear-cut relati onship between ownership structure and capital structure. This study aims to contribute to this controversial argument by examining the impact of internal (managerial ownership and external ownership on fi nancing preferences using the case of non-fi nancial fi rms listed on Karachi stock exchange during the period of 2008-2012. Our results suggest that the external ownership has a signifi cant eff ect on capital structure in accordance with the presence of blockholders. In contrast, the internal ownership has a complicated eff ect; it shows signifi cant positi ve and negati ve relati onship to leverage at lower and certain higher proporti on of managerial shareholding respecti vely. Besides, the combined analyses suggest that the presence of blockholders negates the impact of managerial ownership on capital structure. This implies that the presence of large and dominant shareholders in Pakistani fi rms may have caused a bias for debt fi nancing to protect their voti ng power and returns.

A study on effects of cost-of-equity models on cost-of-capital and capital structure

Directory of Open Access Journals (Sweden)

Meysam Arabzadeh

2012-10-01

Full Text Available Most financial managers believe that there are different factors hindering decision-making about the capital structure of a company. This hindrance is so that, in some financial management literatures capital structure is called the mystery of capital. Financial managers widely believe that financial leverage enjoys a noticeable status in managerial decision making as well as management of the framework of balance sheet. The primary purpose of this research is to present applications of equity modules and to study effective factors on such models on Tehran stock exchange. The study covers data over a period of five years from 2001 to 2005. The study analyzes and tests relevant data to firm’s debt ratio and corporate size as effective factors on cost-of-equity. The preliminary findings indicate that contrary to the commonly held belief in financial management theorems, debts ratio has the least effect on cost-of-equity. Nevertheless, the study suggests that the variant of company’s size has a meaningful relationship with cost-of-equity. To calculate cost-of-equity, CAPM, Gordon and return ratio methods are used. Findings show that CAPM has more validity compared with other varieties. On the other hand, the results indicate that there is a 95-percent probability proving that liquidity has a significant negative effect on financial leverage.

Capital simbólico e investigación. Una nota sobre el capital corporal

Directory of Open Access Journals (Sweden)

Luis Martín Uro

2006-11-01

Full Text Available In this text, Martin Uro, carries out a test about potential benefits of "teoría de campo (field theory" by Pierre Bourdieu in three different levels. The first one concern the project of investigation, the second level regards the statute of this theory within Social Theory Contemporary and finally, this last level is about the position of the person who writes in the investigation field. The emphasis is in the level of the phenomenon that is built possibly due to the analysis of phrases of documents produced in the investigation field. Lastly, conclusions will be carried out as to the use of the category physical capital to name a subspecie of symbolic capital in command of the physical practices for the participation of Physical Education in a jail in the province of Buenos Aires.

Impact of company performances on the stock price: An empirical analysis on select companies in Serbia

Directory of Open Access Journals (Sweden)

Milošević-Avdalović Snežana

2017-01-01

Full Text Available The global financial crisis of the late 2007 has provoked unprecedented shocks to the world markets and weaken investors' confidence due to the turbulent movements and frequent changes of stock prices. Emerging capital markets suffer from unsatisfactory corporate governance, market manipulation and insider trade problems. In such circumstances, institutional investors, managers, analysts and other market participants are in constant search of the trading strategy that will outperform the market. This research is an instrument for the identification of the main determinants of stock prices on the Belgrade Stock Exchange. The panel data regression analysis includes 42 companies that represent the composition of the BelexLine index for the period from 2010 to 2014. The paper looks at the impact of specific (internal variables of companies, such as company size, return on assets, return on equity, earnings per stock, book value, price-earning ratio, price-to-book ratio and leverage and the stock price of companies that compose the BelexLine index. The results indicate that variables such as the size of the company measured by assets, return on assets, leverage, earnings per stock, book value and price-to-book ratio provide a unique contribution to a statistically significant predictor of stock prices.

Valuation of agrifood SMEs. Lessons to be learnt from the stock market

Directory of Open Access Journals (Sweden)

Raül Vidal

2018-02-01

Full Text Available The European agrifood industry is mostly characterized by small and medium enterprises (SMEs; as in 2013, SMEs represented 99.13% of the total number of companies. The valuation of SMEs not listed in any stock market is a complex task since there is not enough information on comparable transactions. When applying discounted cash flow (DCF models to value private agrifood companies, the capital structure and the cost of equity are two key parameters to be determined. The implications of these parameters in the value of the enterprise are not clear inasmuch as it is not possible to carry out a contrast due, precisely, to the lack of comparables. The main goal of this study is to determine the biases that those two parameters can introduce into the valuation process of an agrifood company. We have used the stock market as a framework wherein to apply a simple fundamental model to the companies of the European food industry in order to obtain three valuation multiples. By means of two bootstrap approaches, the bias induced in the multiples has been assessed for every year from 2002-2013. Results show that the use of the return on equity as cost of equity tends to undervaluation; the use of capital asset pricing model (CAPM tends to a slight overvaluation, whereas using the total beta induces an undervaluation bias. Moreover, the capital structure shows little influence on the valuation multiples. The conclusions drawn from this paper can be useful for managers and shareholders of privately-held agrifood companies.

Valuation of agrifood SMEs. Lessons to be learnt from the stock market

Energy Technology Data Exchange (ETDEWEB)

Vidal, R.; Ribal, J.

2017-07-01

The European agrifood industry is mostly characterized by small and medium enterprises (SMEs); as in 2013, SMEs represented 99.13% of the total number of companies. The valuation of SMEs not listed in any stock market is a complex task since there is not enough information on comparable transactions. When applying discounted cash flow (DCF) models to value private agrifood companies, the capital structure and the cost of equity are two key parameters to be determined. The implications of these parameters in the value of the enterprise are not clear inasmuch as it is not possible to carry out a contrast due, precisely, to the lack of comparables. The main goal of this study is to determine the biases that those two parameters can introduce into the valuation process of an agrifood company. We have used the stock market as a framework wherein to apply a simple fundamental model to the companies of the European food industry in order to obtain three valuation multiples. By means of two bootstrap approaches, the bias induced in the multiples has been assessed for every year from 2002-2013. Results show that the use of the return on equity as cost of equity tends to undervaluation; the use of capital asset pricing model (CAPM) tends to a slight overvaluation, whereas using the total beta induces an undervaluation bias. Moreover, the capital structure shows little influence on the valuation multiples. The conclusions drawn from this paper can be useful for managers and shareholders of privately-held agrifood companies.

Valuation of agrifood SMEs. Lessons to be learnt from the stock market

International Nuclear Information System (INIS)

Vidal, R.; Ribal, J.

2017-01-01

The European agrifood industry is mostly characterized by small and medium enterprises (SMEs); as in 2013, SMEs represented 99.13% of the total number of companies. The valuation of SMEs not listed in any stock market is a complex task since there is not enough information on comparable transactions. When applying discounted cash flow (DCF) models to value private agrifood companies, the capital structure and the cost of equity are two key parameters to be determined. The implications of these parameters in the value of the enterprise are not clear inasmuch as it is not possible to carry out a contrast due, precisely, to the lack of comparables. The main goal of this study is to determine the biases that those two parameters can introduce into the valuation process of an agrifood company. We have used the stock market as a framework wherein to apply a simple fundamental model to the companies of the European food industry in order to obtain three valuation multiples. By means of two bootstrap approaches, the bias induced in the multiples has been assessed for every year from 2002-2013. Results show that the use of the return on equity as cost of equity tends to undervaluation; the use of capital asset pricing model (CAPM) tends to a slight overvaluation, whereas using the total beta induces an undervaluation bias. Moreover, the capital structure shows little influence on the valuation multiples. The conclusions drawn from this paper can be useful for managers and shareholders of privately-held agrifood companies.

Single factor financial asset pricing models: an empirical test of the Capital Asset Pricing Model CAPM and the Downside Capital Asset Pricing Model D-CAPM Modelos de precificação de ativos financeiros de fator único: um teste empírico dos modelos CAPM e D-CAPM

Directory of Open Access Journals (Sweden)

Felipe Dias Paiva

2005-06-01

Full Text Available This study analyzed the Capital Asset Pricing Model CAPM as well as the Downside Capital Asset Pricing Model D-CAPM and evaluated the latter as an efficient alternative asset pricing model. The returns of 40 companies on the São Paulo Stock Exchange BOVESPA were studied between December 1996 and August 2002. To test the models the study used as variables the Interbank Deposit Certificate CDI as a risk free asset and the Index of São Paulo Stock Exchange IBOVESPA as a proxy of the market portfolio. The D-CAPM was shown to be more useful in explaining the return of the stock market than the CAPM.O objetivo deste estudo é analisar o capital asset pricing model (CAPM e o downside capital asset pricing model (D-CAPM, bem como avaliar se este último modelo é uma eficiente alternativa de modelo de precificação de ativos. Os dados da pesquisa referem-se a 40 retornos de companhias listadas na Bolsa de Valores de São Paulo, de dezembro de 1996 a agosto de 2002. O artigo utilizou, para testar os modelos, as variáveis Certificado de Depósito Interbancário (CDI, como um ativo livre de risco, e o índice da Bolsa de Valores de Sao Paulo (Ibovespa, como proxy do portfólio de mercado. Conclui-se, então, que o D-CAPM possui uma maior capacidade explicativa dos retornos dos ativos se comparado ao CAPM.

26 CFR 1.1223-1 - Determination of period for which capital assets are held.

Science.gov (United States)

2010-04-01

... have in the hands of such other person. For example, the period for which property acquired by gift... after December 31, 1950, and before January 1, 1954. (h) If a taxpayer accepts delivery of a commodity... capital asset in his hands. (i) If shares of stock in a corporation are sold from lots purchased at...

Intellectual Capital and Intangible Assets Analysis and Valuation

Directory of Open Access Journals (Sweden)

Ion Anghel

2008-03-01

Full Text Available Today the intellectual capital is a key factor in company’s profitability. Two major forces have driven the high performance workplace over the past two decades: globalization and increasing in technological changes. In this environment, the intellectual capital and intangible assets is fundamental to success. In the new economic competition, knowledge assets provide a sustainable competitive advantage. The measurement is fundamental to support management decision in allocation investment and investor’s decision regarding the value versus price. In our research we consider a group of Romanian listed companies on Bucharest Stock Exchange and analyze the importance of intangible value into the total market value of the equity. From accounting point of view the importance of intangible assets is very low but from the market evidence was indicated 47% importance of intangible value in total market value for the Romanian listed companies.

Statistical analysis of bankrupting and non-bankrupting stocks

Science.gov (United States)

Li, Qian; Wang, Fengzhong; Wei, Jianrong; Liang, Yuan; Huang, Jiping; Stanley, H. Eugene

2012-04-01

The recent financial crisis has caused extensive world-wide economic damage, affecting in particular those who invested in companies that eventually filed for bankruptcy. A better understanding of stocks that become bankrupt would be helpful in reducing risk in future investments. Economists have conducted extensive research on this topic, and here we ask whether statistical physics concepts and approaches may offer insights into pre-bankruptcy stock behavior. To this end, we study all 20092 stocks listed in US stock markets for the 20-year period 1989-2008, including 4223 (21 percent) that became bankrupt during that period. We find that, surprisingly, the distributions of the daily returns of those stocks that become bankrupt differ significantly from those that do not. Moreover, these differences are consistent for the entire period studied. We further study the relation between the distribution of returns and the length of time until bankruptcy, and observe that larger differences of the distribution of returns correlate with shorter time periods preceding bankruptcy. This behavior suggests that sharper fluctuations in the stock price occur when the stock is closer to bankruptcy. We also analyze the cross-correlations between the return and the trading volume, and find that stocks approaching bankruptcy tend to have larger return-volume cross-correlations than stocks that are not. Furthermore, the difference increases as bankruptcy approaches. We conclude that before a firm becomes bankrupt its stock exhibits unusual behavior that is statistically quantifiable.

The Ciclovia and Cicloruta Programs: Promising Interventions to Promote Physical Activity and Social Capital in Bogotá, Colombia

Science.gov (United States)

Sarmiento, Olga L.; Stauber, Christine; Zarama, Roberto

2013-01-01

Objectives. We compared participants from the Ciclovia (streets temporarily closed to motorized vehicles and open for pedestrians) and Cicloruta (bicycle paths) programs in Bogotá, Colombia, to assess associations of program participation with physical activity, safety, social capital, and equity. Methods. We conducted 2 cross-sectional studies in October 2009 with intercept surveys: one among 1000 Ciclovia participants and the other among 1000 Cicloruta participants. Results. Most Ciclovia participants met the physical activity recommendation in leisure time (59.5%), and most Cicloruta participants met it by cycling for transportation (70.5%). Ciclovia participants reported a higher perception of safety (51.2% regarding traffic and 42.4% about crime) and social capital (odds ratio = 2.0; 95% confidence interval = 1.4, 2.8) than did Cicloruta users. Most Cicloruta users reported living in low socioeconomic status categories (53.1%), had lower educational attainment (27%), and did not own cars (82.9%). Most Ciclovia participants reported living in middle socioeconomic status categories (64%), had low-to-middle educational attainment (51.1%), and did not own cars (66.1%). Conclusions. The Ciclovia and Cicloruta programs have the potential to equitably promote physical activity and provide a mobility alternative in complex urban settings such as Bogotá. PMID:23237179

Formation of reserves to cover loss from depreciation of stocks of retail trade enterprises

Directory of Open Access Journals (Sweden)

A.S. Krutova

2017-12-01

Full Text Available Nowadays, the most significant and widely researched accounting innovation is forming the reserve system of a business unit under conditions of sustainable development. The research proves the necessity of forming the reserves as an element of a business unit protection from the risks to lose economic profits because of assets depreciation. It is proposed when making a decision about the formation of the reserve to protect stocks from depreciation, to take into account the level of essentiality not only the deviation size of actual cost of goods from their market cost, but also the level of essentiality of the deviation of actual commodity turnover from its planned significance. The authors develop the algorithm for the level of essentiality assessment when forming the reserve of depreciation of stocks for trade enterprises, which actualizes two indices, namely, the relative deviations of commodity turnover and the cost of goods and allows to make decision about formation of reserves for decreasing the cost of capital equipment including essentiality. The research determines the main factors of influence on the depreciation of the stocks under conditions of continuity, they are: the change of assessment of stocks because of the events after report date, the methods of determining the risk of stocks, moral depreciation and quality loss. To provide the continual cycle of replenishment of commodity stocks for a trade enterprise the authors develop the diagram of accounting process for the formation and use of the depreciation reserve of stocks.

Price Earnings Ratio and Stock Return Analysis (Evidence from Liquidity 45 Stocks Listed in Indonesia Stock Exchange

Directory of Open Access Journals (Sweden)

Liem Pei Fun

2012-01-01

Full Text Available Price to Earnings Ratio (PE Ratio has been broadly used by analysts and investors for stock selection. Stocks with low PE ratio are perceived as having cheaper current price hence expected to generate higher return in subsequent period. This paper aims to examine predictability of stock return using PE Ratio based on historical relationship between PE Ratio and subsequent stock return. Particularly, it seeks to find whether stocks with high PE Ratio followed by low stocks return and on the contrary, stocks with low PE Ratio followed by high stocks return. Using stocks which are included as member of Liquidity 45 and observation period 2005-2010 as samples, results show that there is significance difference between low PE and high PE portfolio stock return in short term (holding period of 6 months but there is no significance difference between both portfolio stock return if they are hold for one, two, three, and four years. This research also finds that there is no significant relationship between stock return and (trailing PE Ratio which suggests that (trailing PE Ratio is not useful in estimating both short term and long term stock returns

Market Reaction to the Approval of Stock Option Plans: an Event Study of Bovespa Listed Companies