Capital market consequences of cultural influences on earnings: The case of cross-listed firms in the U.S. stock market

2018 ◽  
Vol 57 ◽  
pp. 134-147 ◽  
Author(s):  
Singgih Wijayana ◽  
Sidney J. Gray
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Cultural Influences ◽  
Listed Firms ◽  
Market Consequences ◽  
The U.S

The Advent of IFRS in Canada: Incidence on Value Relevance

2016 ◽  
Vol 15 (3) ◽  
pp. 113-130 ◽  
Author(s):  
Denis Cormier ◽  
Michel L. Magnan
Keyword(s):  
Stock Market ◽  
Earnings Management ◽  
Stock Markets ◽  
Value Relevance ◽  
Financial Statements ◽  
Market Prices ◽  
Listed Firms ◽  
Ifrs Adoption ◽  
The U.S

ABSTRACT The paper focuses on Canada's enactment of IFRS for publicly accountable firms. We investigate whether IFRS meet one of their stated goals, which is to improve financial statements' relevance for stock markets. Results show that migrating from Canadian GAAP to IFRS enhances the value relevance of earnings but the effect is concentrated among firms that are cross-listed in the U.S. (and that do not report according to U.S. GAAP). The advent of IFRS enhances the value relevance of information contained in footnotes but attenuates the need for non-GAAP measures' disclosure. Stock market prices also embed more precise anticipations about future IFRS earnings. Additional analyses suggest that less earnings management accompanies IFRS adoption. Our results suggest that, for cross-listed firms, the adoption of IFRS enhanced the comparability of their financial statements and, ultimately, their value relevance.

scholarly journals A mini review of the Chinese stock market: From 1978 to 2010

2013 ◽  
Vol 10 (2) ◽  
pp. 700-707 ◽  
Author(s):  
Yi An ◽  
Umesh Sharma ◽  
Harun Harun
Keyword(s):  
Stock Market ◽  
Economic Reform ◽  
Financial Reporting ◽  
Future Development ◽  
Capital Markets ◽  
Capital Market ◽  
Chinese Stock Market ◽  
Listed Firms

The Chinese economic reform, starting from 1978, facilitated the emergence and development of the capital markets. This paper provides a brief review of the Chinese stock market from various perspectives, such as the regulation, issuance of shares, shareholding structure and financial reporting of listed firms, and future development. It is expected that our paper could offer readers andresearchers who are in the Chinese capital market, particularly in the area of accounting and finance, a general understanding of the market.

Investor recognition and stock returns: evidence from China

2018 ◽  
Vol 8 (2) ◽  
pp. 199-215 ◽  
Author(s):  
Hongquan Zhu ◽  
Lingling Jiang
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Capital Market ◽  
Univariate Analysis ◽  
Chinese Stock Market ◽  
Cross Sectional ◽  
Content Type ◽  
Listed Firms ◽  
Monthly Return ◽  
The Relationship

Purpose Merton’s model of capital market equilibrium under incomplete information predicts that contemporaneous stock returns are positively related to investor recognition and that future stock returns are negatively related to investor recognition. The purpose of this paper is to empirically investigate whether Merton’s theory holds true for the Chinese stock market. Design/methodology/approach This paper proposes the degree of shareholder base growth (SBG) as a proxy for investor recognition and examines the relationship between investor recognition and stock returns through a univariate analysis and Fama-Macbeth cross-sectional regressions based on A-Share listed firms. Findings The results show that investor recognition is nonlinearly and positively related to contemporaneous stock returns and is negatively related to future stock returns in contrast to the conclusions of Merton’s theory. A long-short trading strategy that involves buying stocks with the lowest SBG rate and that sells stocks with the highest SBG rate will earn an average monthly return of 3.615 percent. Research limitations/implications Though Merton’s theory is not fully reflected in the Chinese stock market, investor recognition is considered an important risk factor in the Chinese stock market. Originality/value No works have yet investigated the validity of Merton’s “investor cognition hypothesis” in relation to the Chinese stock market. This paper strives to fill this gap.

scholarly journals The Impact of Internationalization of Sarbanes-Oxley Act to the U.S. Listed Indonesian Companies

2020 ◽  
Vol 1 (2) ◽  
pp. 31-41
Author(s):  
Ahmad Fauzi ◽  
Asri Sitompul
Keyword(s):  
Stock Market ◽  
Initial Public Offering ◽  
Capital Market ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
The Public ◽  
Sarbanes Oxley ◽  
Public Offering ◽  
The Impact ◽  
The U.S

In every country the existence of capital markets is fundamental in the development of the economy. Capital market, in addition to its function as a means to gather and allocate the public funds. Numerous companies attempted to fix up in order to get into a stock market and do the Initial Public Offering (IPO). But it is not an easy job, various preparations should be carried out and of course it takes some time and effort and considerable cost. In addition to stock market laws, the market is also governed by various regulations issued by the market authorities and stock exchanges as the SRO. In the U.S., the authority is the SEC and in Indonesia the capital market authority is the OJK. Stock exchanges such as the NYSE in the U.S. and Indonesian Stock Exchange (BEI) in Indonesia also issued various rules regulate all companies listed the shares in the stock exchanges. Internationalization means to bring something local to the international level. The Sarbanes-Oxley Act is supposed to applicable only in the U.S, it is not applicable in Indonesia. But the law is brought from the U.S brought to Indonesia to be applied to Indonesian companies that have the stocks listed with the U.S stock market. The application of the Act brought some problems to Indonesian companies that have to comply with all requirements stipulated in the Act.

Determinants of Trading Decision: An Experiential Examination

GIS Business ◽  
2018 ◽  
Vol 13 (1) ◽  
pp. 1-9
Author(s):  
Gunjan Sharma ◽  
Tarika Singh ◽  
Suvijna Awasthi
Keyword(s):  
Stock Market ◽  
Capital Markets ◽  
Capital Market ◽  
Capital Mobility ◽  
Influential Factors ◽  
Herd Behavior ◽  
Human Beings ◽  
The Past ◽  
The Government ◽  
Indian Stock Market

In the midst of increasing globalization, the past two decades have observed huge inflow of outside capital in the shape of direct and portfolio investment. The increase in capital mobility is due to contact between the different economies across the globe. The growing liberalization in the capital market leads to the growth of various financial products and services. Over the past decade, the Indian capital market has witnessed numerous changes in the direction of developing the capital markets more robust. With the growing Indian economy, the larger inflow of funds has been fetched into the capital markets. The government is continuously working on investor’s education in order to increase retail participation in the Indian stock market. The habits of the risk-averse middle class have been changing where these investors started participating in the Indian stock market. It is an explored fact that human beings are irrational and considering this fact becomes imperative to investigate factors that influence the trading decisions. In this research, ‘an attempt has been made to investigate various factors that affect the individual trading decision’. The data has been collected from various stockbroking firms and from clients of those stockbroking firms their opinions were recorded by means of a questionnaire. Data collected through the structured questionnaire, 33 questions were prepared which was given to the 330 respondents on the basis of convenience sampling out of which 220 individuals filled questionnaire, the total of 200 questionnaires was included in the study after eliminating the incomplete questionnaire. Various factors are being explored from the literature and then with the help of factor analysis some of the most influential factors have been explored. Factors like overconfidence, optimism, cognitive bias, herd behavior, advisory effect, and idealism are the factors which influenced the trading decision of the investors the most. Such kind of a study is contributing in the area of behavioral finance as a trading decision is an important aspect while investing in the stock market. And this kind of study would be helping and assisting financial advisors to strategies for their clients in making the right allocation and also the policy maker and market regulators to come up with better reforms for the Indian stock markets.

Gestión de los intangibles del capital humano. Política de retribuciones y sus efectos. El caso de los grupos de empresa cotizados españoles

Oikos ◽  
2015 ◽  
Vol 14 (30) ◽  
pp. 49
Author(s):  
Esteban Pérez Calderón ◽  
Patricia Milanés Montero ◽  
Herenia Gutiérrez Ponce
Keyword(s):  
Human Capital ◽  
Stock Market ◽  
Capital Market ◽  
Return On Investment ◽  
Employee Productivity ◽  
Human Capital Management ◽  
Remuneration Policy ◽  
The One ◽  
Capital Humano ◽  
Los Grupos

RESUMENEn los últimos años, las empresas han venido realizando grandes inversiones en generosos mecanismos de retribución y compensación a sus empleados con la esperanza de alcanzar un doble objetivo. Por un lado, que estas actuaciones sean reconocidas por el mercado de valores y, por otro, esperando un mayor retorno de la inversión realizada en su personal. En el presente trabajo comprobamos cómo están repercutiendo estas inversiones sobre la productividad de los empleados (resultados económicos) y si son premiadas por el mercado de capitales (resultados financieros). Nuestro estudio se centra en los grupos de empresa cotizados españoles.Palabras clave: gestión, intangibles, capital humano, política retributiva. Intangibles of human capital management. Remuneration policy and its effects. The case of the spanish groups listed companies.ABSTRACTIn recent years, companies have been investing heavily in generous remuneration and compensation models for its employees hope to achieve two objectives. On the one hand, that these actions are recognized by the stock market and, second, expecting a greater return on investment in their human capital. In this paper we focus on to see how these investments are having an impact on employee productivity (economic results) and if they are rewarded by the capital market (financial results). Our study focuses on Spanish groups listed companies.Keywords: management, intangibles, human capital, remuneration policy.

The Economic Impact of the Covid-19 Outbreak : Evidence from Indonesia

2020 ◽  
Vol 5 (3) ◽  
Author(s):  
Ahmad Ulil Albab Al Umar ◽  
Herninda Pitaloka ◽  
Eka Resmi Hartati ◽  
Dessy Fitria
Keyword(s):  
Stock Market ◽  
Economic Impact ◽  
Case Studies ◽  
Capital Market ◽  
Descriptive Study ◽  
Current Case ◽  
Quantitative Descriptive Study ◽  
Quantitative Descriptive ◽  
The Capital Market

This research aims to analyses the economic impact of the COVID 19 outbreak toward the stock market in Indonesia. This research is a quantitative descriptive study by collecting various sources from journals and current case studies about COVID 19 outbreak. The technique of collecting data uses quotations and related news. The results in this study are COVID-19 pandemic outbreak has a pretty bad impact on the capital market, where the occurrence of this pandemic has affected many investors in making investment actions that are very influential on the Stock Market.  

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