Is Exchange Regulation Effective for Junior Public Equity Markets?

2018 ◽  
pp. 486-505
Author(s):  
J. Ari Pandes ◽  
Michael Robinson
Keyword(s):  
Stock Exchange ◽  
Early Stage ◽  
Market Performance ◽  
Equity Markets ◽  
Equity Market ◽  
Secondary Market ◽  
Public Firms ◽  
Market Index ◽  
Public Equity ◽  
Pool Market

In this chapter the authors examine the effectiveness of an exchange-regulated junior public equity market in the development of early-stage firms. They focus specifically on a regulated blind-pool market in Canada known as the Capital Pool Company program and show that the exchange-regulated program has increased the number of junior public firms in Canada, with over 10% graduating to a more senior stock exchange within three years on average. They also show that the firms experience strong secondary market performance pre-graduation, but that the post-graduation performance is worse than the market index in the three- and five-year periods after the graduation.

scholarly journals International portfolio diversification: United States and south Asian equity markets

2014 ◽  
Vol 61 (2) ◽  
pp. 241-252 ◽  
Author(s):  
Rizwan Mushtaq ◽  
Zulfiqar Shah
Keyword(s):  
Stock Market ◽  
South Asian ◽  
Equity Markets ◽  
Equity Market ◽  
Causality Test ◽  
Market Index ◽  
International Portfolio Diversification ◽  
The Us ◽  
Short And Long Term

This paper explores the dynamic liaison between US and three developing South Asian equity markets in short and long term. To gauge the long-term relationship, we applied Johansen co-integration procedure as all the representative indices are found to be non-stationary at level. The findings illustrate that the US equity market index exhibits a reasonably different movement over time in contrast to the three developing equity markets under consideration. However, the Granger-causality test divulge that the direction of causality scamper from US equity market to the three South Asian markets. It further indicates that within the three developing equity markets the direction of causality emanates from Bombay stock market to Karachi and Colombo. Overall, the results of the study suggest that the American investors can get higher returns through international diversification into developing equity markets, while the US stock market would also be a gainful upshot for South Asian investors.

scholarly journals Innovation Strategy of Private Firms

2017 ◽  
Vol 53 (1) ◽  
pp. 1-32 ◽  
Author(s):  
Huasheng Gao ◽  
Po-Hsuan Hsu ◽  
Kai Li
Keyword(s):  
New Technology ◽  
Equity Markets ◽  
Life Cycles ◽  
Innovation Strategy ◽  
Private Firms ◽  
Investment Horizon ◽  
Public And Private ◽  
Public Firms ◽  
Innovation Strategies ◽  
Public Equity

We compare innovation strategies of public and private firms based on a large sample over the period 1997–2008. We find that public firms’ patents rely more on existing knowledge, are more exploitative, and are less likely in new technology classes, while private firms’ patents are broader in scope and more exploratory. We investigate whether these strategies are due to differences in firm information environments, CEO risk preferences, firm life cycles, corporate acquisition policies, or investment horizons between these two groups of firms. Our evidence suggests that the shorter investment horizon associated with public equity markets is a key explanatory factor.

scholarly journals Converting TSX 300 Index to S&P/TSX Composite Index: Effects on the Index’s Capitalization and Performance

2016 ◽  
Vol 8 (6) ◽  
pp. 250 ◽  
Author(s):  
Shamsul Alam ◽  
Ebenezer Asem ◽  
Shirin Shams
Keyword(s):  
Important Determinant ◽  
Stock Exchange ◽  
Tracking Error ◽  
Market Performance ◽  
Composite Index ◽  
Equity Market ◽  
Toronto Stock Exchange ◽  
And Performance

<p style="margin: 0in 0in 8pt; text-align: justify; line-height: normal;">In May 2002, the TSX (Toronto Stock Exchange) 300 Index was converted to S&amp;P/TSX Composite Index, increasing the flexibility of stock addition to, and deletion from, the Index. We study whether the increased flexibility enhances the Index’s ability to mimic the Canadian equity market performance and to represent the equity market. Our results show that the S&amp;P/TSX Composite Index captures a higher proportion of the equity market and has a lower tracking error than the TSX 300 Index. This suggests that flexibility in updating the constituents of an index is an important determinant of the index’s ability to represent the underlying market.</p>

Study on Indian Stock Market Performance Based on Commodities

2021 ◽  
pp. 415-431
Author(s):  
Deepika N. ◽  
Nirupama Bhat Mundukur ◽  
Victer Paul
Keyword(s):  
Stock Market ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Market Performance ◽  
Listed Companies ◽  
Secondary Market ◽  
Secondary Markets ◽  
Stock Indices ◽  
Stock Market Performance ◽  
Indian Stock Market

A stock exchange facilitates trading shares of pubicly listed companies. The trading process is operated through two non-separable and mutually supporting segments called as primary and secondary markets, governed by the Security and Exchange Board of India abbreviated as SEBI. The platform which forms and sale the new securities is known as primary market and the platform in which dealings of these previously issued securities is known as secondary market. Stock market or equity market is the area that facilitates the trading of the publicly listed security shares in the secondary market, and as of now, more than 1300 securities are available in the exchange for trading. The trading process is analyzed using trading ring in earlier days. The authors focus on analyzing the effect of dollar sell, dollar purchase, and commodities price under the oil and gas group crude oil on Indian stock indices.

scholarly journals Interest rate, liquidity and stock market performance in Ghana

2016 ◽  
Vol 4 (1) ◽  
pp. 46 ◽  
Author(s):  
Micheal Kofi Boachie ◽  
Isaac Osei Mensah ◽  
Albert Opoku Frimpong ◽  
Martin Ruzima
Keyword(s):  
Interest Rate ◽  
Stock Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Stock Market Index ◽  
Monthly Data ◽  
Market Index ◽  
Stock Market Performance ◽  
M Estimation ◽  
Ghana Stock Exchange

<p>In this study, we examined the effect of interest rate and liquidity growth on stock market performance in Ghana using monthly data from the Ghana Stock Exchange and Bank of Ghana for the period 2010:12 to 2013:11. After employing robust linear regression (M-Estimation), there is a compelling evidence that performance of the Ghanaian stock market is highly influenced by liquidity growth, exchange rate and inflation; and that interest rate effect is insignificant though positive on the stock market index for the period under study.</p>

Value Creation in New Firms: Evidence from the Biotechnology Industry

1998 ◽  
Vol 1 (1) ◽  
pp. 41-52 ◽  
Author(s):  
Joseph E. Coombs ◽  
David L. Leeds
Keyword(s):  
Value Creation ◽  
Top Management Team ◽  
Equity Markets ◽  
Market Value ◽  
Biotechnology Industry ◽  
Management Team ◽  
New Firms ◽  
Public Firms ◽  
Explanatory Variables ◽  
Public Equity

The purpose of this study is to empirically examine those factors that enhance the value of newly public firms. The article presents a model for the market value of a newly public biotechnology firm. Explanatory variables include several intangible indicators of the scientific capabilities of the firm including firm citations, licenses, patents, products in the pipeline, and R&D intensity. Top management team variables are also examined. The results support the conclusion that scientific capabilities significantly impact the value of the firm as viewed by public equity markets.

scholarly journals PENGARUH TANGGUNG JAWAB SOSIAL PERUSAHAAN TERHADAP KINERJA PERUSAHAAN(STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR YANG TERCATAT DI BURSA EFEK INDONESIA PADA TAHUN 2010 DAN 2011)

2014 ◽  
Vol 1 (1) ◽  
pp. 41 ◽  
Author(s):  
Helen Octavia ◽  
Hermi Hermi
Keyword(s):  
Annual Report ◽  
Stock Exchange ◽  
Market Performance ◽  
Cumulative Abnormal Return ◽  
Test Results ◽  
Public Firms ◽  
Corporate Social Disclosure ◽  
Mandatory Rules ◽  
Csr Disclosure ◽  
Corporate Social

<span class="fontstyle0">The purpose of this research is to test the effect of CSR on firm financial and market performance. This research used Corporate Social Disclosure Index (CSDI) as a measure of CSR disclosure, based on indicators from Research Based. The samples of this research are 56 public firms manufacture listed in Indonesian Stock Exchange (IDX) year 2010 and 2011. Relatively lower score of CSDI shows that CSR disclosure in firms’ annual report is still low. This may due to there is still no mandatory rules regarding CSR disclosure in Indonesia and the lack of firms’ awareness of the importance of CSR and its disclosure in annual report. Test results show that CSR disclosure have positive and significant effect on Return on Asset as a measure of financial performance, but CSR disclosure do not has significant effect on cumulative abnormal return (CAR) as a measure of market performance.</span>

scholarly journals The Random Walk Model in the Pakistani Equity Market: An Examination

1997 ◽  
Vol 36 (3) ◽  
pp. 221-240 ◽  
Author(s):  
Fazal Husain
Keyword(s):  
Random Walk ◽  
Stock Returns ◽  
Stock Prices ◽  
Stock Price ◽  
Equity Markets ◽  
Theoretical Models ◽  
Equity Market ◽  
Random Walk Model ◽  
Frequency Distributions ◽  
Market Index

This paper examines the validity of the Random Walk Model in the Pakistani equity market. The model, extensively tested in other equity markets, implies that past movements in a stock price are not helpful in predicting future prices of that stock. The model states that changes in stock prices are serially independent and conform to some probability distribution. Conventionally, the independence part is examined through Serial Correlation Test, whereas the distributional aspect is analysed through Frequency Distributions. Same techniques are applied in this paper on daily closing prices of 36 individual stocks, 8 sector indices, and a market index from January 1, 1989 to December 30, 1993. The analysis indicates that the Random Walk Model is not valid in the Pakistani equity market as is the case in other emerging markets. The results show the presence of strong serial dependence in stock returns and indicate the slow adjustment of the market to new information. This points to the weaknesses of the market regarding the dissemination of pertinent information to potential investors, indicating that effective measures should be taken in this regard. The shape of the distribution reveals that stock returns in the Pakistani market, like in other equity markets, do not comply with the normal distribution, implying that theoretical models must be used with caution.

Pengaruh Reputasi Underwriter, Umur Perusahaan, dan Persentase Penawaran Saham 53 kepada Publik terhadap Underpricing

2016 ◽  
Vol 8 (1) ◽  
pp. 53-74
Author(s):  
Maria Jeanne ◽  
Chermian Eforis
Keyword(s):  
Initial Public Offering ◽  
Stock Price ◽  
Stock Exchange ◽  
Secondary Data ◽  
Secondary Market ◽  
Financial Statement ◽  
Data Set ◽  
Multiple Regression Method ◽  
Underwriter Reputation ◽  
Public Offering

The objective of this research is to obtain empirical evidence about the effect of underwriter reputation, company age, and the percentage of share’s offering to public toward underpricing. Underpricing is a phenomenon in which the current stock price initial public offering (IPO) was lower than the closing price of shares in the secondary market during the first day. Sample in this research was selected by using purposive sampling method and the secondary data used in this research was analyzed by using multiple regression method. The samples in this research were 72 companies conducting initial public offering (IPO) at the Indonesian Stock Exchange in the period January 2010 - December 2014; perform initial offering of shares; suffered underpricing; has a complete data set forth in the company's prospectus, IDX monthly statistics, financial statement and stock price site (e-bursa); and use Rupiah currency. Results of this research were (1) underwriter reputation significantly effect on underpricing; (2) company age do not effect on underpricing; and (3) the percentage of share’s offering to public do not effect on undepricing. Keywords: company age, the percentage of share’s offering to public, underpricing, underwriter reputation.

APAKAH FAKTOR EKSTERNAL MEMPREDIKSI UNDERPRICING LEBIH BAIK DIBANDINGKAN FAKTOR INTERNAL? STUDI INITIAL PUBLIK OFFERING DI BEI TAHUN 2009-2017

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Saefudin Saefudin ◽  
Tri Gunarsih
Keyword(s):  
Interest Rates ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
Sample Selection ◽  
Secondary Data ◽  
Secondary Market ◽  
Company Size ◽  
Negative Effect ◽  
Underwriter Reputation ◽  
Public Offering

Underpricing is a phenomenon that still occurs in the Indonesian capital market, where the offering price of shares in the primary market is lower than the opening price or closing price on the first day on the secondary market. This study aims to examine the effect of Return On Assets (ROA), Debt to Equity Ratio (DER), company size, underwriter reputation, age, and interest rates on the underpricing of shares in companies’s Initial Public Offering (IPO) listing on the Indonesia Stock Exchange (BEI) in 2009 to 2017. The population in this study are companies that conduct IPOs on the BEI period 2009 to 2017. The sample selection in this study uses a purposive sampling method, based on certain criteria. The sample in this study were 183 underpricing companies from 205 companies conducting IPO in the period 2009 to 2017. The data used in this study used secondary data. The multiple regression analysis was implemented in this study. The results showed that DER, company size, and underwriter reputation did not significantly influence underpricing. While ROA, age and interest rates have a significant negative effect on underpricing. In this study, investors consider ROA, age, interest rates compared to DER, company size, and the reputation of the underwriter to invest in companies that make an IPO.Keywords: Underpricing, Initial Public Offering, and Indonesian Stock Exchange.

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