The Impact of Pennies on the Market Quality of the Toronto Stock Exchange

2006 ◽  
Vol 41 (2) ◽  
pp. 273-288 ◽  
Author(s):  
Brian F. Smith ◽  
D. Alasdair S. Turnbull ◽  
Robert W. White
Keyword(s):  
Stock Exchange ◽  
Market Quality ◽  
Toronto Stock Exchange ◽  
The Impact

The Cross-Sectional Spillovers of Single Stock Circuit Breakers

2018 ◽  
Vol 04 (03n04) ◽  
pp. 1950008
Author(s):  
James Brugler ◽  
Oliver Linton ◽  
Joseph Noss ◽  
Lucas Pedace
Keyword(s):  
Stock Exchange ◽  
Spillover Effect ◽  
Market Quality ◽  
Trading Costs ◽  
Circuit Breakers ◽  
Cross Sectional ◽  
Transaction Data ◽  
Continuous Trading ◽  
Do So

This paper uses transaction data to estimate how single stock circuit breakers on the London Stock Exchange affect other stocks that remain in continuous trading. This “spillover” effect is estimated by calculating the effect of a trading halt on the market quality of stocks that remain in continuous trading and comparing this with the effect of a stock whose absolute returns are of a magnitude nearly sufficient to trigger a trading halt but do not do so. Market quality is measured using a combination of trading costs, volatility and volume. In the two-month period we study, characterized by a relatively volatile trading environment, we find that circuit breakers lead to a significant improvement in the liquidity, and reduction in the volatility, of stocks that remain in continuous trading. This suggests that — at least over the period covered by our data — single stock circuit breakers can play an important role in reducing the spillover of poor market quality across stocks.

scholarly journals The Impact of Audit Committee Characteristics on Earnings Management: A Canadian Case Study

2015 ◽  
Vol 2 (1) ◽  
pp. 68
Author(s):  
Lynda Ioualalen ◽  
Hanen Khemakhem ◽  
Richard Fontaine
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
Stock Exchange ◽  
Empirical Test ◽  
Control Group ◽  
Toronto Stock Exchange ◽  
Financial Expertise ◽  
The Impact

The objective of this study was to analyze the impact of three Audit Committee (AC) characteristics, financial expertise, diversity and activism on aggressive earnings management. We hypothesized that these AC characteristics are negatively related to aggressive earnings management. To test or hypothesis, we conducted an empirical test with a sample of 10 Canadian corporations listed on the Toronto stock exchange: 5 companies that were accused of aggressive earnings management and 5 other corporations used as a control group. We analyzed the 5-year period prior to the accusation (1999-2003). We measured earnings management by the level of discretionary accruals (using the modified Jones model (1995). Our results show that activism and the financial expertise of AC members are negatively related to aggressive earnings management; however, we did not find a significant relationship between diversity and aggressive earnings management. These results contribute to help governance oversight organizations identify AC characteristics that have the most influence on the detection of aggressive earnings management, which could help agencies develop and enforce methods to detect and reduce aggressive earnings management practices.

scholarly journals CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE: EVIDENCE FOR THE ROMANIAN ECONOMY

2015 ◽  
Vol 17 (3) ◽  
pp. 458-474 ◽  
Author(s):  
Monica-Violeta ACHIM ◽  
Sorin-Nicolae BORLEA ◽  
Codruţa MARE
Keyword(s):  
Corporate Governance ◽  
Business Performance ◽  
Stock Exchange ◽  
Policy Makers ◽  
Governance Practices ◽  
Corporate Governance Practice ◽  
Corporate Governance Quality ◽  
The Impact ◽  
A Company

Our finding contributes towards the understanding of movements regarding the adoption of corporate governance practice in emerging countries such as Romania and its impact on business performances of a company. We have developed two econometric models to assess the business performances of the companies listed on Bucharest Stock Exchange, in order to point out the impact of corporate governance on business performances. Our results are inconsistent for the period 2001–2011, but if we consider only 2011, the results document a positive correlation between corporate governance quality and market value of companies, such it is reflected by Tobin’s Q. Therefore, our results contribute to the studies relating corporate governance and business performances, as it confirms a positive relationship between the two variables which appears once the Romanian emerging economy has began to adopt the best corporate governance practices. Firstly, our research has important implications for managers in order to know that the adoption of the best corporate governance practices could contribute to the financial success of the firm. Secondly, the results are useful for any investor who needs to consider the quality of corporate governance as a good predictor for the best rate of return of theirs investments. Moreover, our findings have also implications on policy-makers and regulatory authorities in European developing countries and offer them a barometer of adopting the best corporate governance practices in European space.

scholarly journals Environmental, social and governance and creditworthiness: Two contrary evidence from major Asian markets

2021 ◽  
Vol 17 (2) ◽  
pp. 161-187
Author(s):  
Narapong Srivisal ◽  
Natthawat Jamprasert ◽  
Jananya Sthienchoak ◽  
Pornpitchaya Kuwalairat
Keyword(s):  
Credit Rating ◽  
Stock Exchange ◽  
Risk Mitigation ◽  
Important Indicator ◽  
Heterogeneous Effects ◽  
The Social ◽  
Financial Quality ◽  
Sustainable Investment ◽  
The Impact

Assets managed under sustainable investment criteria have been massively growing during the recent years. Among the criteria, environmental, social and governance (ESG) score leads the group as an important indicator of non-financial quality of a firm, which may reflect value to investors either through higher expected profit or lower risk. In this paper, we focus on the latter by exploring whether ESG score has linkage to the credit rating of firms due to the risk mitigation effect. Ordered logistic regressions are applied on a panel dataset of listed companies in Shanghai Stock Exchange and Tokyo Stock Exchange from 2009 to 2018. The results suggest that only in Japan, having ESG coverage is greatly associated with being awarded higher credit rating. However, only the environmental and governance pillars positively link to the Japanese firms’ credit ratings, while the social pillar shows negative correlation. The finding of heterogeneous effects translates to an important implication that investment in ESG should be taken with care as the impact of ESG may depend on different nature or culture of markets.

scholarly journals The Board Faultlines and Corporate Disclosure Quality: Based on Big Data Samples and Economic Model

2021 ◽  
Vol 251 ◽  
pp. 01043
Author(s):  
Qian Xing
Keyword(s):  
Big Data ◽  
Economic Model ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Corporate Disclosure ◽  
Disclosure Quality ◽  
Research Findings ◽  
The Impact

This article uses the selected data listed companies in Shenzhen Stock Exchange from 2008 to 2018 as big data samples to empirically study the impact of the board faultlines on corporate disclosure quality. Through statistical analysis and economic model, it transforms qualitative questions into quantitative questions. The results of the study show that the existence of the board faultlines will reduce the quality of information disclosure of listed companies. After a series of robustness tests, the above research findings are still robust.

scholarly journals ANALISIS RELEVANSI INFORMASI, RELIABILITAS, DAN ASIMETRI INFORMASI SETELAH PENGADOPSIAN IFRS (STUDI PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI TAHUN 2009-2014)

2020 ◽  
Vol 5 (4) ◽  
pp. 526-539
Author(s):  
Shella Yolan Anggraini ◽  
Nadirsyah Nadirsyah
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Test Model ◽  
Net Income ◽  
Discretionary Accrual ◽  
Bid Ask Spread ◽  
The Impact

The objectives of the research are to examine the impact of adoption of IFRS in Indonesia on quality of financial statement information in terms of relevance and reliability and to examines information asymetry. The Relevance is measured by combined value relevance of book value of equity and net income, reliability is measured by absolute discretionary accrual as an inverse measure, and information asymetry is measured by bid ask spread. Data were collected from the financial statements of the manufacture companies that listed at Indonesia Stock Exchange. Research conduct in 6 years (2009-2014). By using purposive sampling and balanced panel data, there are 31 companies fulfilling the sample criteria. Multiple linier regression and paired sample t-test model is used to test the hypothesis. The results showed that there is an increasing quality of financial statement information after the adoption of IFRS but no difference in information asymmetry after the adoption of IFRS

scholarly journals The Impact of Audit Quality Features on Enhancing Earnings Quality: The Evidence of Listed Manufacturing Firms at Amman Stock Exchange

2015 ◽  
Vol 7 (2) ◽  
pp. 255
Author(s):  
Mohammad Abdallah Almomani
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Manufacturing Firms ◽  
External Audit ◽  
Quality Properties ◽  
Amman Stock Exchange ◽  
The Impact ◽  
Quality Features

<p>The study aims at investigating the impact of external audit quality features on enhancing the quality of accounting profits of the listed manufacturing firms at Amman Stock Exchange (ASE), where continuity of profit has been used as Proxy variable to express the quality of earnings. Indicators of quality of audit, audit office size, auditors' fees, period of customer's retention, type of auditor's opinion, and the specialization in client's industry, were used to measure audit quality. A sample of 45 firms had been selected, and data covering the period 2009-2013 had been collected from these firms, where 225 observations were used in the analysis. The study finds that the earnings of listed manufacturing firms at Amman Stock Exchange are with good quality, and that there is a linear relationship between external audit quality and the quality of reported earnings. Auditors' fees have most important significant effect on earnings quality, followed by auditors' opinion, where others factors has no significant effect on earnings quality. Based on these findings, the study raises several questions about the reliability of audit quality properties by stakeholders in firms, especially investors, when they check the quality of earnings, whenever they need to take a decision. The study recommends further researches regarding the issue by using other metrics to measure earnings quality, and through the addition of other properties to the quality of the audit, such as linked audit offices with auditing global offices, degree of qualification employees, and the opened lawsuits against audit office.</p>

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