scholarly journals Rule Britannia! British Stock Market Returns, 1825-1870

2009 ◽  
Vol 69 (4) ◽  
pp. 1107-1137 ◽  
Author(s):  
Graeme G. Acheson ◽  
Charles R. Hickson ◽  
John D. Turner ◽  
Qing Ye
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Equity Returns ◽  
British History ◽  
Market Returns ◽  
Stock Market Returns ◽  
Survivorship Bias ◽  
Real Returns ◽  
Modern Era

This article presents a new series of monthly equity returns for the British stock market for the period 1825-1870. In addition to calculating capital appreciation and dividend yields, the article also estimates the effect of survivorship bias on returns. Three notable findings emerge from this study. First, stock market returns in the 1825-1870 period are broadly similar for Britain and the United States, although the British market is less risky. Second, real returns in the 1825-1870 period are higher than in subsequent epochs of British history. Third, unlike the modern era, dividends are the most important component of returns.

Stock Market Returns and Suicide Rates: Evidence From the United States

2016 ◽  
Vol 44 (1) ◽  
pp. 89-102
Author(s):  
Sujung Choi
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Market Returns ◽  
Stock Market Returns ◽  
Financial Decisions ◽  
Market Participants ◽  
Emotional Factors ◽  
Suicide Rates ◽  
Male Suicide

I investigated whether or not social mood is associated with the financial decisions of market participants in the United States, using the monthly suicide rate to represent the degree of negative social mood in a society. From monthly suicide data collected over the period from January 1981 through to December 2012, I found that suicide rates are associated with stock market returns, in aggregate. Specifically, suicide rates predicted future stock market returns, showing contemporaneous and lagged relationships with U.S. stock market returns. Furthermore, small-cap stocks were found to be more likely to be affected by suicide rates than were large-cap stocks. Female suicide rates had a stronger effect on market returns than male suicide rates did, suggesting that this suicide effect is not induced by economic reasons but, rather, is related to emotional factors (e.g., investor mood).

Post-operating performance of construction mergers and acquisitions of the United States of America

2006 ◽  
Vol 33 (3) ◽  
pp. 266-277 ◽  
Author(s):  
Jongsoo Choi ◽  
Donald Harmatuck
Keyword(s):  
United States ◽  
Stock Market ◽  
Mergers And Acquisitions ◽  
Construction Industry ◽  
United States Of America ◽  
Operating Performance ◽  
The United States ◽  
Market Returns ◽  
Stock Market Returns ◽  
Research Outcomes

A previous study assessed stock market returns (ex ante expectations), and this study examines the actual operating performance (ex post-operating performances) of the mergers and acquisitions (M&A) observed during the past two decades (1980-2002) in the construction industry in the United States of America. Utilizing various statistical tools and longitudinal data analysis modeling techniques, three hypotheses were tested. First, the level of synergistic gains, measured as operating cash flow returns, was not improved significantly after firm integration. Second, regarding the management wealth maximization hypothesis, the size of firms dramatically increased after the integration of the firms, and the operating performance was slightly improved compared with that before the event. Research outcomes also indicated that the previous research findings concerning stock market returns on M&A were consistent with the long-term operating performance, and thus supported the market efficiency hypothesis. Lastly, M&A guidelines for the construction industry are presented based on the research outcomes from both stock market return and operating performance analysis. Key words: mergers and acquisitions, diversification strategy, operating performance.

scholarly journals Correlation of stock market returns in the West African region from 2008 to 2016

2019 ◽  
Vol 16 (3) ◽  
pp. 120-130 ◽  
Author(s):  
Eseosa Obadiaru ◽  
Alex Omankhanlen ◽  
Barnabas Obasaju ◽  
Henry Inegbedion
Keyword(s):  
United States ◽  
United Kingdom ◽  
Stock Market ◽  
United States Of America ◽  
Composite Index ◽  
The United States ◽  
The Other ◽  
Sample Period ◽  
Entire Sample ◽  
Stock Market Returns

Stock markets over the world have become more interconnected due to activities of foreign investors in search for alternative financial assets and markets to invest in order to diversify their portfolio. Stock market indices and index returns have been known to reflect linkages between different markets. This study assesses the extent of correlation of stock market index returns in West Africa and those of the United States of America (US) and United Kingdom (UK) from 2008 to 2016. The correlation between the index returns for the entire sample period and yearly samples were considered for Nigeria, Ghana, the BRVM, the USA and the UK. The indices selected for the five countries considered are the Nigerian All-Share Index, Ghanaian Composite Index, the BRVM Composite Index, the Financial Times 100 Index and the Standards and Poor’s 500 Index. Daily index returns data were used for the study and analyzed using correlation and multiple regression analysis. Findings revealed that the returns of the pairs of the United States of America (US) and the United Kingdom (UK) exhibited stronger positive correlation with each other than the other market pairs in the study both in the entire sample period and the yearly sub-period analysis. The correlations between the other market pairs were either positively or negatively weak or very weak indicating more diversification opportunities.

The Impact of US Economic Policy Uncertainty Shock on GCC Stock Market Performance

2019 ◽  
Vol 10 (2) ◽  
Author(s):  
Abdullah Alqahtani ◽  
Michael Taillard
Keyword(s):  
Stock Market ◽  
Granger Causality ◽  
The United States ◽  
Policy Uncertainty ◽  
Market Returns ◽  
Stock Market Returns ◽  
Gcc Countries ◽  
Stock Market Performance ◽  
Oil Markets ◽  
The Impact

Abstract This study examines the impact of the United States’ Economy Policy Uncertainty (US EPU) shocks on the Gulf Cooperation Council (GCC) countries’ stock market returns which are heavily related through global oil markets. Using monthly data spanning from 31/01/2010 to 31/08/2018, we employ a Non-Structural Vector Autoregression (VAR) and Vector Granger Causality Tests (VGCT) in order to ascertain the magnitude of transmitted shocks and to primarily evaluate if US EPU affects stock market returns in any of the GCC countries. Our OLS and VAR results suggest that US EPU has little impact on the GCC markets with the exception of Bahrain. The Vector Granger Causality Test confirms that changes in US EPU influence returns on Qatar’s stock market. These results will help GCC nations to stabilize global energy markets and prevent economic ripples to policy shocks.

scholarly journals Is There a Connection between Sovereign CDS Spreads and the Stock Market? Evidence for European and US Returns and Volatilities

Mathematics ◽  
2020 ◽  
Vol 8 (10) ◽  
pp. 1667
Author(s):  
Laura Ballester ◽  
Ana González-Urteaga
Keyword(s):  
Stock Market ◽  
Financial Crises ◽  
Credit Default Swap ◽  
Equity Returns ◽  
Stock Market Volatility ◽  
Market Returns ◽  
Stock Market Returns ◽  
Credit Default ◽  
The Us ◽  
The Relationship

This study complements the current literature, providing a thorough investigation of the lead–lag connection between stock indices and sovereign credit default swap (CDS) returns for 14 European countries and the US over the period 2004–2016. We use a rolling VAR framework that enables us to analyse the connection process over time covering both crisis and non-crisis periods. In addition, we analyse the relationship between stock market volatility and CDS returns. We find that the connection between the credit and equity markets does exist and that it is time variable and seems to be related to financial crises. We also observe that stock market returns anticipate sovereign CDS returns, and sovereign CDSs anticipate the conditional volatility of equity returns, closing a connectedness circle between markets. Contribution percentages in terms of returns are more intense in the US than in Europe and the opposite result is found with respect to volatilities. Within Europe, a greater impact in Eurozone countries compared to non-Eurozone countries is observed. Finally, an additional analysis is also carried out for the financial sector, obtaining results largely consistent with those found using sovereign data.

scholarly journals The Early Impact of Government Financial Intervention Policies and Cultural Secrecy on Stock Market Returns During the COVID-19 Pandemic: Evidence From Developing Countries

2021 ◽  
Vol 12 (2) ◽  
pp. 401
Author(s):  
Fouad Jamaani ◽  
Manal Alidarous ◽  
Abdullah Al-Awadh
Keyword(s):  
Developing Countries ◽  
Stock Market ◽  
Stock Markets ◽  
Equity Markets ◽  
Equity Market ◽  
Equity Returns ◽  
Market Returns ◽  
Daily Growth ◽  
Role Of Government ◽  
Stock Market Returns

This paper examines the role of government financial intervention policies and cultural secrecy on equity market returns during the start of the COVID-19 pandemic in developing countries’ stock markets. We employ global data including 939 observations across 32 developing countries (23 emerging and 9 frontier stock markets) from December 1 to April 28, 2020. Our results show that the above-mentioned policies that set out to curb the COVID-19 pandemic succeed in increasing equity returns. It reflects investors’ improved perceptions of governments’ commitment to stabilizing the economy during the pandemic in developing, emerging, and frontier equity markets. Results show that investors in all equity markets discount differences in cultural secrecy in processing market information when investing in stock markets. We find that equity market investors in developing and emerging countries truly react negatively to the rise in the number of confirmed COVID-19 cases reported. Yet, we find that COVID-19 wields no influence on equity market returns in frontier equity markets. This presents frontier equity markets as a safe-haven investment destination during a global health outbreak. Our work helps investors during such events to identify the best and worst investment destinations in developing, emerging, and frontier stock markets. At the same time, it is important to understand the critical roles of: firstly, the introduced government financial intervention policies; and secondly, the daily growth in reported COVID-19 cases on stock market returns.

scholarly journals Do Industry Specialist Auditors Add Value in Mergers and Acquisitions?

2015 ◽  
Vol 31 (4) ◽  
pp. 1245 ◽  
Author(s):  
Ho-Young Lee ◽  
Vivek Mande ◽  
Jong Chool Park
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Abnormal Returns ◽  
Financial Statements ◽  
The United States ◽  
Market Returns ◽  
Stock Market Returns ◽  
Audit Firm ◽  
External Auditors ◽  
Acquiring Firms

This study examines whether the stock market returns surrounding announcements of mergers and acquisitions (M&A) are higher for acquiring firms audited by industry specialists. External auditors are uniquely positioned to provide assurance on the financial statements of their acquiring clients both before and after an acquisition. Also, an important aspect of due diligence in M&A transactions is the external auditors review of the accounting records, financial statements, internal controls and information systems of the target company. Using a sample of 4,283 M&A announcements between 1988 and 2011 in the United States of America, we report the results from our main regressions, controlling for all the bidder traits and deal characteristics. We examine incremental effect of audit firm specialization on cumulative abnormal returns. We also measure the effect of audit firm industry specialization in a reduced sample of 3,946 acquisitions after removing all non-Big N auditors. We use Heckmans (1979) two-step procedure to ensure that announcement period return to the size of the audit firm is not driven by the determinants related to auditor choice. Consistent with the idea that industry specialists provide higher quality assurance and possibly superior M&A advisory services, we find that the stock market returns are higher when acquiring firms are audited by industry specialists.

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