Stock liquidity and free float: evidence from the UK

2018 ◽  
Vol 44 (10) ◽  
pp. 1227-1236 ◽  
Author(s):  
Ghaith El-Nader
Keyword(s):  
Regression Analysis ◽  
Stock Market ◽  
Design Methodology ◽  
Firm Characteristics ◽  
Firm Level ◽  
Cross Sectional ◽  
Stock Liquidity ◽  
Content Type ◽  
Data Regression ◽  
The Uk

Purpose The purpose of this paper is to investigate the interactions between free float and stock liquidity in the UK stock market over the period 2002–2016. Design/methodology/approach This paper is conducted using cross-sectional data regression analysis. The sample consists of 15,650 firm-level observations from the UK stock market. Findings The findings suggest that stocks with higher levels of free float are associated with higher levels of liquidity. This relation is significant regardless of the liquidity measure used, and is evident even after controlling for firm characteristics. Originality/value This paper contributes to the existing literature by presenting further evidence on the significance of free float in capital markets and its effect on stock liquidity, particularly for UK firms as the minimum free float requirements as announced by the FTSE group in 2011 increased from 15 to 25 percent.

Immigrants in the EU5 labour markets: what happened during the economic crisis?

2019 ◽  
Vol 41 (1) ◽  
pp. 68-83 ◽  
Author(s):  
Claudio Quintano ◽  
Paolo Mazzocchi ◽  
Antonella Rocca
Keyword(s):  
Labour Market ◽  
Big Five ◽  
Design Methodology ◽  
Dynamic Factor ◽  
Time Series Models ◽  
Cross Sectional ◽  
Content Type ◽  
Relative Disadvantage ◽  
Temporal Dimensions ◽  
The Uk

Purpose The purpose of this paper is to understand: whether the changes that have occurred in migrants’ conditions over time are smaller than the differences in their conditions existing across countries; and whether the comparison between immigrants and native-born conditions allows the verification of the levels of disparities between them and, therefore, the relative disadvantage suffered by migrant. After a general overview of the 28 European Union countries, this paper analyses the changes that have occurred from 2006 to 2017 in the conditions of migrants in the labour market in the big five European countries (Italy, Spain, France, Germany and the UK). Design/methodology/approach Various statistical methodologies were used. First, to gain an overall picture, taking into account both the spatial and the temporal dimensions, dynamic factor analysis (DFA) was applied. Second, time-dependent and cross-sectional time-series models were estimated to better understand the DFA results. Findings The results highlight very different scenarios in terms of labour market vulnerabilities, both affecting immigrants and native-born workers. The results also highlight the existence of a very complex framework, due to the high heterogeneity of immigrants’ characteristics and labour market capacities to integrate migrants and also to promote good conditions for the native-born population. Originality/value The picture emerging from this study and the evaluation of the policies and legislation in force to cope with migration and to promote integration suggests some reflections on the most efficacious actions to take in order to improve migrants’ integration, counteracting social exclusion and promoting economic growth.

Depression affecting work performance: gender differentials across occupations

2014 ◽  
Vol 35 (3) ◽  
pp. 250-266 ◽  
Author(s):  
Pablo Arocena ◽  
Imanol Nuñez
Keyword(s):  
Regression Analysis ◽  
Design Methodology ◽  
Work Performance ◽  
Explanatory Variable ◽  
Gender Effect ◽  
Men And Women ◽  
Content Type ◽  
Gender Differentials ◽  
Logit Regression ◽  
The Uk

Purpose – The purpose of this paper is to study the incidence of depression affecting work (DAW) performance and estimates gender differences across occupations. Design/methodology/approach – Using Labor Force Survey data from the UK in 2007, the authors first decompose the differential on the aggregate incidence rate of DAW between men and women into two components: the gender effect and the occupational effect. Then, the authors identify the stressors of DAW by means of a logit regression analysis. Findings – The empirical results show that gender is not a significant explanatory variable of DAW. Further, when differences are analyzed for each gender separately, results show that the effect of occupations is stronger within females than within males. Originality/value – Most of previous studies focus on occupational causes of depression. By contrast, this paper investigates the effect of depression on work performance.

scholarly journals Firm-level immunity to COVID-19 induced uncertainty

2020 ◽  
Author(s):  
Sahil Narang ◽  
Savita Rawat ◽  
Rudra Prakash Pradhan
Keyword(s):  
Stock Market ◽  
Market Reaction ◽  
Univariate Analysis ◽  
Recovery Period ◽  
Firm Characteristics ◽  
Firm Level ◽  
Cross Sectional ◽  
Stock Market Reaction ◽  
Book To Market Ratio ◽  
High Beta

Abstract The paper investigates the stock market response to COVID-19 induced financial uncertainty and the role of pre-shock firm-specific characteristics in shaping such stock market behaviour using a sample of S&P BSE 500 companies. Initially, the stock market experiences a significant downfall due to COVID-19 induced uncertainty; although, the market appears to rebound after a major setback. Downfall and recovery are quite surprising as downfall happened when cases were extremely small in number and there was no nation-wide lockdown announcement yet. Recovery happened when strict lockdowns were enforced and cases were rising significantly. Stock market reaction were heterogeneous among industries and various firm characteristics. On closer analysis, we find that some firms are more resilient to COVID-19 shock than others. Our analysis reveals that the most affected were small-sized, high beta, loser, and low-profitability firms as indicated by univariate analysis. The multivariate analysis finds momentum, profitability, beta, market capitalization, age, and book-to-market ratio to be the major determinants of cross-sectional CARs during downfall & recovery period. The study provides evidence of the negative reaction to COVID-19 induced uncertainty and subsequent recovery. We concludes that pre-COVID firm-specific factors play an essential role in explaining the variation in the stock market reaction to COVID-19 induced uncertainty.

Firm characteristics and compliance with IAS/IFRS

2019 ◽  
Vol 17 (3) ◽  
pp. 383-410
Author(s):  
Ali Alnaas ◽  
Afzalur Rashid
Keyword(s):  
Financial Reporting ◽  
North Africa ◽  
Design Methodology ◽  
Institutional Ownership ◽  
Stock Exchanges ◽  
Reporting Standards ◽  
Firm Characteristics ◽  
Firm Level ◽  
Content Type ◽  
Financial Reporting Standards

Purpose This paper aims to examine the influence of firm characteristics on harmonisation of companies listed on the Egypt, Morocco and Tunisia Stock Exchanges. Design/methodology/approach This study uses a checklist based mainly on the International Financial Reporting Standards (IFRS). Findings The findings of the study are 6that the level of compliance with IFRS was higher in 2010 than in 2005. Multiple regression analysis indicates that the level of compliance with IFRS increases with company size, institutional ownership, industry and language of disclosure. Research limitations/implications The findings of this study suggest that both institutional- and firm-level forces influence the harmonisation process. Originality/value This study contributes to the literature on accounting harmonisation in the context of North Africa.

Herd behavior in the French stock market

2017 ◽  
Vol 16 (4) ◽  
pp. 497-515 ◽  
Author(s):  
Houda Litimi
Keyword(s):  
Stock Market ◽  
Trading Volume ◽  
Design Methodology ◽  
Garch Model ◽  
Herd Behavior ◽  
Conditional Volatility ◽  
Herding Behavior ◽  
Absolute Deviation ◽  
Cross Sectional ◽  
Content Type

Purpose This paper aims to investigate the herding behavior in the French stock market and its effect on the idiosyncratic conditional volatility at a sectoral level. Design/methodology/approach This sample covers all the listed companies in the French stock market, classified by sector, over four major crisis periods. The author modifies the cross-sectional absolute deviation (CSAD) model to include trading volume and investors sentiment as herding triggers. Furthermore, the author uses a modified GARCH model to investigate the effect of herding on conditional volatility. Findings Herding is present in the French market during crises, and it is present in only some sectors during the entire period. The main trigger for investors to embark into a collective herding movement differs from one sector to another. Furthermore, herding behavior has an inhibiting effect on market conditional volatility. Originality/value The author modifies the CSAD model to investigate the presence of herding in the French stock market at a sectoral level during turmoil periods. Furthermore, the particularly designed GARCH model provides new insights on the effect of herding and volume turnover on the conditional volatility.

Remuneration committee and corporate failure

2015 ◽  
Vol 15 (5) ◽  
pp. 623-640 ◽  
Author(s):  
Kingsley Opoku Appiah ◽  
Amon Chizema
Keyword(s):  
Design Methodology ◽  
Corporate Boards ◽  
Cross Sectional ◽  
Content Type ◽  
Corporate Failure ◽  
Financial Firms ◽  
Fixed And Random Effects ◽  
Board Monitoring ◽  
The Uk ◽  
Practical Implications

Purpose – This study aims to examine the role the structure of corporate boards plays in the failure of the firm. Specifically, it examines whether the remuneration committee is related to corporate failure in the UK. Design/methodology/approach – The study uses 1,835 firm-year observations for 98 failed and 269 non-failed UK-listed non-financial firms between the periods of 1994 and 2011. This study used pooled cross-sectional, fixed and random effects LOGIT models to estimate whether corporate failure is related to remuneration committee in the UK. Findings – The findings indicate that corporate failure is negatively related to the independence of the remuneration committee chairman and remuneration committee’s effectiveness but not remuneration committee’s presence, size and meetings. However, a positive and significant relationship was observed between corporate failure and remuneration committee independence. Practical implications – The findings of the study provide support for the appropriateness of agency theory as analytical lens through which to study the efficacy of remuneration committee, especially the independence of the remuneration committee chairperson, as a board monitoring device, in the context of corporate failure. Originality/value – The paper adds to existing literature on corporate governance by establishing the likely causes of corporate failure in the UK.

Capital structure and firm performance in European SMEs

2019 ◽  
Vol 45 (5) ◽  
pp. 582-601 ◽  
Author(s):  
Kang Li ◽  
Jyrki Niskanen ◽  
Mervi Niskanen
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Credit Risk ◽  
Design Methodology ◽  
Debt Ratio ◽  
Cross Sectional ◽  
Content Type ◽  
The Uk ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to investigate whether the relationship between capital structure and firm performance in small- and medium-sized enterprises (SMEs) is moderated by credit risk. Design/methodology/approach The authors empirically test whether an SME’s credit risk affects the SME’s relationship between capital structure and firm performance by using a 2012 cross-sectional sample of European SMEs from Austria, Belgium, Finland, France, Germany, Italy, Portugal, Spain, Sweden and the UK. Findings The empirical results suggest that in low credit risk SMEs, the debt ratio is negatively related to firm performance; however, this relationship is not present in high credit risk SMEs. Therefore, it is indicated that SME credit risk moderates the relationship between capital structure and firm performance. Practical implications The findings of the paper will enable financial managers to understand the importance of SMEs’ credit risk and will assist them in maximizing firms’ performance. Originality/value This paper extends the findings of previous studies by examining whether credit risk affects the relationship between capital structure and firm performance.

scholarly journals The determinants of AAOIFI governance disclosure in Islamic banks

2020 ◽  
Vol 18 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Tawida Elgattani ◽  
Khaled Hussainey
Keyword(s):  
Regression Analysis ◽  
Audit Committee ◽  
Design Methodology ◽  
Financial Institution ◽  
Islamic Banks ◽  
Firm Characteristics ◽  
Main Determinant ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
Governance Disclosure

Purpose The purpose of this study is to investigate the influence of corporate governance mechanisms on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) governance disclosure in Islamic Banks. Design/methodology/approach To test the research hypotheses, the authors created a comprehensive AAOIFI governance disclosure index and used regression analysis for a sample of Islamic banks for the financial years within the period 2013-2015. Findings The authors found that audit committee size is the main determinant of the AAOIFI governance disclosure. Research limitations/implications This study has a number of limitations that could be taken as avenues for a future study such as, the study used the six variables of CG and the four variables of firm characteristics, based on available data. This research is limited to just Islamic banks. Originality/value The research contributes to Islamic accounting literature by identifying the driver for the AAOIFI governance disclosure for Islamic banks that mandatorily adopt AAOIFI standards.

Threat orientation in small and medium-sized enterprises

2015 ◽  
Vol 24 (5) ◽  
pp. 583-595 ◽  
Author(s):  
Brahim Herbane
Keyword(s):  
Design Methodology ◽  
Longitudinal Research ◽  
Self Report ◽  
Recent Experience ◽  
Firm Age ◽  
Cross Sectional ◽  
Policy Makers ◽  
Content Type ◽  
Regression Techniques ◽  
The Uk

Purpose – The purpose of this paper is to examine whether the experience, impact and likelihood of an acute business interruption, along with the perceived ability to intervene, influences the “threat orientation” of owner-managers in small- and medium-sized enterprises (SMEs) in the UK. The concept of “threat orientation” is introduced in this study as a way to eschew the binary view of whether an organisation does or does not have processes and capabilities to respond to acute interruptions. Design/methodology/approach – “Threat orientation” is operationalised and survey data are collected from 215 SMEs in the UK. Data from owner-managers are analysed using multiple regression techniques. Findings – The results of this study provide empirical evidence to highlight the importance of firm age rather than size as a determinant of the propensity to formalise activities to deal with acute interruptions. Recent experience and the ability to intervene were statistically significant predictors of threat orientation but the likelihood and concern about specific types of threat was not found to positively influence threat orientation. Research limitations/implications – Although the data are self-report in nature, the respondents in the study are the chief decision and policy makers in their organisations and thus it is essential to understand the influences on their threat orientation. Results are generalisable only to UK SMEs. Originality/value – The findings of the paper contribute to a nascent understanding of planning for acute interruptions in SMEs and (despite the cross-sectional nature of the study), the findings clearly reinforce the need for continuing longitudinal research into how resilience develops in smaller organisations.

Trust antecedents: emotional intelligence and perceptions of others

2015 ◽  
Vol 23 (1) ◽  
pp. 89-101 ◽  
Author(s):  
Anne M.H. Christie ◽  
Peter J. Jordan ◽  
Ashlea C. Troth
Keyword(s):  
Emotional Intelligence ◽  
Regression Analysis ◽  
Design Methodology ◽  
Negative Impact ◽  
Small Sample Size ◽  
Small Sample ◽  
Workplace Performance ◽  
Cross Sectional ◽  
Content Type ◽  
Cross Sectional Design

Purpose – The purpose of this paper is to examine if teachers’ trust in others is predicted by their perceptions of others and their emotional intelligence. Employees need to trust others to achieve outcomes, and a lack of trust can have a negative impact on workplace performance. Design/methodology/approach – The paper surveys a sample of 84 employed teachers. Findings – Our findings show that perceptions of others’ ability, benevolence and integrity are strongly and positively associated with trust. The emotional intelligence ability to perceive emotions is also related to trust. Regression analysis showed that perceptions of others (ability and integrity) and an individual’s emotional intelligence (perceiving) combined to predict a large portion of the variance in trust. Research limitations/implications – This study was limited by a small sample size and the use of a cross-sectional design. These issues were addressed in our analysis. Originality/value – The majority of trust research examines employee-to-manager trust. Our study is one of the few to examine trust among co-workers. This study also contributes to research on the emotional intelligence and trust relationship by showing that the ability to perceive one’s own and others emotions significantly predicts increases in trust. It also reaffirms that perceptions of others’ integrity and ability are strongly linked to trust, but that further investigation of the benevolence construct is required.

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