Impacts of ownership structure on stock price synchronicity of listed companies on Vietnam stock market

Institutional and individual investors are the two important players in the stock market. Together, they determine the price of the stock market. In this paper, an evolutionary game model that contains the two groups of players is proposed to analyze the stock price synchronicity considering the impacts of investors’ decisions on stock investment. Factors affecting investors’ decisions include the potential revenue or loss, the probability of gain or loss, and the cost of corresponding behavior. The proposed game model is analyzed by replicator dynamics equations and simulation of the evolutionary equilibrium strategy under different circumstances. The analysis shows that the operating cost of institutional investors, the cost of information collection before trading, and the expected loss that may be punished by regulators are the key factors that affect the evolutionary game system between institutional investors and individual investors. In addition, reducing the speculation in the market and increasing the information access of investors through the serious operation mode of institutional investors and the strengthening of the market information disclosure mechanism are beneficial to alleviate price synchronicity in stock market.

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Inside the “Black Box” of Ownership Structures in Russia: Evidence from Stock Price Synchronicity

Journal of International Accounting Research ◽

10.2308/jiar-19-532 ◽

2020 ◽

Vol 19 (3) ◽

pp. 111-132

Author(s):

Mohay Uddin Khan Khattak ◽

Asheq Rahman ◽

Ahsan Habib

Keyword(s):

Adverse Effect ◽

Ownership Structure ◽

Stock Price ◽

Black Box ◽

Information Environment ◽

Ownership Concentration ◽

Stock Price Synchronicity ◽

Negatively Associated ◽

Ownership Structures ◽

Cash Flow Rights

ABSTRACT Ownership structure, an important feature of corporate governance, acts as a determinant of the opacity of firms. This study penetrates the “black box” of the ownership structures of Russian corporations, identifies their salient features, and examines the effects of those features on the information environment (stock price synchronicity) of the corporations. Examining a sample of companies listed on the Moscow Exchange, we find that stock price synchronicity is: (1) positively associated with divergence between control and cash-flow rights of the ultimate owner; (2) negatively associated with the ownership concentration of the ultimate owner; (3) negatively associated with companies controlled indirectly by the state through holding corporations with the presence of oligarchs; and (4) negatively associated with firms with transparent oligarchs. Analyzing the economic impact of the results, we find the presence of non-transparent oligarchs and foreign-offshore holdings has the most adverse effect on stock price synchronicity.

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Is the Social Responsibility Information Disclosed by the Companies really Valuable?—Evidence from Chinese Stock Price Synchronicity

Sustainability ◽

10.3390/su10103578 ◽

2018 ◽

Vol 10 (10) ◽

pp. 3578 ◽

Cited By ~ 4

Author(s):

Jingwen Dai ◽

Chao Lu ◽

Yang Yang ◽

Yanhong Zheng

Keyword(s):

Social Responsibility ◽

Capital Market ◽

Stock Price ◽

Listed Companies ◽

Market Pricing ◽

Stock Price Synchronicity ◽

Pricing Efficiency ◽

Significant Difference ◽

The Media ◽

The Impact

Social responsibility information disclosed by listed companies is an important way to transfer non-financial information to the stock market, which affects the level of stock price synchronicity. In order to explore whether Corporate Social Responsibility (CSR) information is valuable in improving capital market pricing efficiency, this paper conducted empirical research based on a sample of China Shanghai and Shenzhen A-share listed companies in years 2010–2015. The results showed that: (1) Overall, there is a significant positive correlation between CSR information and stock price synchronicity; (2) under different disclosure motives, there is no significant difference in the impact of CSR on stock price synchronicity; (3) Securities analysts and institutional investors can negatively regulate the positive relationship between CSR and stock price synchronicity, while the media will intensify the positive effect of CSR on stock price synchronicity. This research is of great significance in promoting the fulfillment of CSR and improving capital market pricing efficiency.

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Sector Wise Stock Market Performance during Pre and Post Covid Era

International Journal of Engineering and Management Research ◽

10.31033/ijemr.11.2.28 ◽

2021 ◽

Vol 11 (2) ◽

pp. 200-205

Author(s):

Dr. Avijit Sikdar

Keyword(s):

Stock Market ◽

Capital Market ◽

Stock Price ◽

Listed Companies ◽

Share Price ◽

Daily Return ◽

Banking And Finance ◽

Stock Market Performance ◽

Significant Difference ◽

The Usa

The spread of the Covid-19 pandemic has an unprecedented and immense impact on the world economy as well as the Indian economy. The stock market, treated as a barometer of the economic activity of any country is adversely affected. Not even in India, countries like Germany, France, the USA, and Spain have been strongly affected. Nationwide lockdown, restriction on the transportation system, demand-supply disequilibrium lead to slow down in the economy and create a fear factor among the participants of the capital market. Rapid fall in the share price and increased volatility are identified during this period. The present study tries to compare the stock price return volatility, no of the transaction, and delivery percentage of various listed companies listed on BSE during the pre and post COVID 19 periods to examine the effect of this pandemic on the economy as a whole. Period of Study: In this paper, we have consideredthe pre-covid period from 1st September 2019 to 15th March 2020 and post covid period from 16th March 2020 to August 2020. Sample: for this study, we have selected 50 BSE listed Companies covering 5 sectors, viz. Pharma, Automobile, Industrial Products, Banking and Finance, and Consumer Goods. Statistical Method: We have used paired sample t-test for comparing the arithmetical mean of different capital market parameters for these two sub-periods for each sector separately and standard deviation of daily return as a measure of volatility. Conclusion: From the study, we have observed that average daily share price; average daily return; daily no. of transactions and volatility is significantly different from pre and post covid period for most of the sectors. However, we have not perceived any significant difference in the delivery percentage of traded shares of these sectors between two study periods.

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Impacts of Business Confidence and Consumer Confidence on VN-Index

Journal of Asian Business and Economic Studies ◽

10.24311/jabes/2014.222.02 ◽

2014 ◽

Vol 222 ◽

pp. 76-88

Author(s):

Thủy Thân Thị Thu ◽

Thảo Phạm Thị Bích

Keyword(s):

Stock Market ◽

Stock Price ◽

Price Index ◽

Listed Companies ◽

Consumer Confidence ◽

Factors Affecting ◽

Business Confidence ◽

Stock Price Index ◽

Positive Impacts

Fluctuations in stock price index are always the focus of investors’ and listed companies’ interest, so the exploration of factors affecting this index is crucial. This paper examines the impacts of business confidence and consumer confidence on VN-Index. The results confirm positive impacts of business confidence and consumer confidence on the index, but they are not remarkably high. Thence, the study proposes solutions to the improvement in business confidence and consumer confidence to help the Vietnam’s stock market grow in a stable and sustainable manner.

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