scholarly journals Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial Products

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-18
Author(s):  
Cheng Chung Wu ◽  
Menglin Yang ◽  
Tiantong Yuan ◽  
Qionghui Fu ◽  
Ya Ju Tsai
Keyword(s):  
Financial Crisis ◽  
Complexity Analysis ◽  
Listed Companies ◽  
Electrical Machinery ◽  
Equity Issues ◽  
Financial Products ◽  
Corporate Size ◽  
Investment Opportunities ◽  
Financial Characteristics ◽  
The Impact

This study is based on the situation of Taiwan listed companies as derivative financial products from 2015 to 2017, analyzing the relationship between the hedging of derivative financial products and characteristics of enterprises and the factors that affect the hedging decision-making of companies. It is found that even after the announcement of Taiwan’s No. 34 and No. 36 bulletins, there are still some problems that are needed to improve in the disclosure of derivative financial product investment information by Taiwan’s listed companies, at least in the disclosure of the reasons for this conduct which is still insufficient. In this study, two-stage regression analysis method is applied to empirical analysis, and it is found that hedging activities are related to corporate characteristics, such as expected financial crisis costs, corporate size, equity issues, growth investment opportunities, and information asymmetry. In the investment of derivative financial products, enterprises should evaluate their own financial characteristics as a reference for the risk avoidance decision. At the same time, it is necessary to investigate different natures of hedging tools used in appropriate risk categories, so as to fully achieve the hedging effect and maximize the hedging benefits. This study also found that companies with higher growth investment opportunities, larger size, and higher financial crisis costs will tend to use derivative financial products for hedging. As for the impact of other industries, it is found that the electronic and electrical machinery industries are more active than other industries in hedging behaviors of undertaking derivative financial products’ transaction.

scholarly journals The impact of the financial crisis on earnings management: Empirical evidence from Italian and Spanish listed companies

2019 ◽  
Vol 16 (2) ◽  
pp. 121-130 ◽  
Author(s):  
Francesco De Luca ◽  
Francesco Paolone
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Performance Indicators ◽  
Listed Companies ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Time Period ◽  
Security Offerings ◽  
The Impact ◽  
Giving Bad News

Our study adopts a reliable and widely acknowledged model to detect accounts manipulation in order to assess the impact of the financial crisis on Italian and Spanish listed companies’ propensity to manage their earnings. The analysis is conducted on 565 publicly traded companies on the Italian and Spanish financial markets during the time period 2005-2013. We find a lower propensity to manipulate earnings in both countries during the pre-crisis period (2005-2008) as suggested by a decrease in the number of high-risk manipulators until 2008 included. With the spread of the financial crisis, companies become more manipulators. We believe that the reason for this is to avoid giving bad news to markets, investors, and lenders after that the crisis may have impacted too negatively on firms’ performance indicators and financial equilibrium. Our empirical results provide various implications for further studies related to managements’ incentives concurrently with security offerings.

scholarly journals The influence of the recent financial crisis on the financial situation of Polish listed companies

e-Finanse ◽  
2017 ◽  
Vol 13 (4) ◽  
pp. 110-126 ◽  
Author(s):  
Jerzy Różański ◽  
Paweł Kopczyński
Keyword(s):  
Financial Crisis ◽  
Stock Markets ◽  
Global Financial Crisis ◽  
Listed Companies ◽  
Share Price ◽  
Financial Situation ◽  
The Real ◽  
Share Prices ◽  
Recent Financial Crisis ◽  
The Impact

AbstractThe recent financial crisis that began in 2007, also known as the Global Financial Crisis, had a huge influence on the financial situations of enterprises and financial institutions around the world. The situation on world stock markets was also strongly affected by the crisis. As the behavior of investors may be affected by various factors which can impact their decisions on the stock exchanges, some of them may be unable to act in a rational manner and make the right decisions. The huge drop in share prices on world stock markets was visible in the early stages of the crisis. The share price does not always reflect the real situation of the company. The main purpose of this article is to evaluate the influence of the recent financial crisis on the financial situation and performance of Polish listed companies. Financial ratios will be utilized to evaluate the real changes in the financial situation of Polish listed companies during the crisis. A large group of companies will be covered by the survey in order to assess the impact of macroeconomic factors on the financial situations of enterprises in different phases of the crisis. Market tests will not be applied because they may be affected by changes in share prices which in turn are often affected by irrational decision-making and fear.

Analysis of Profitability in Chinese Listed Ceramic Companies

2010 ◽  
Vol 434-435 ◽  
pp. 820-822
Author(s):  
Rong Hui Hua ◽  
Li Wei Zhou
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Listed Companies ◽  
Stock Exchanges ◽  
Industry Sector ◽  
Traditional Industry ◽  
The Impact

There are seven ceramic companies listed in Shanghai and Shenzhen Stock Exchanges. Because they belong to traditional industry sector, the profitability of most companies is weak. Listed companies experienced equity reform from 2005. In the paper, we analyze the impact of the reform and the impact of global financial crisis on those companies.

Does Corporate Debt influence the Firms’ Growth after Global Financial Crisis? Evidence from Malaysian Public Listed Companies

2021 ◽  
Vol 6 (1) ◽  
pp. 94
Author(s):  
Nur Syabihah M.H. ◽  
Yahya M.H. ◽  
Meishan Chua
Keyword(s):  
Financial Crisis ◽  
Financial Distress ◽  
Firm Growth ◽  
Global Financial Crisis ◽  
Unobserved Heterogeneity ◽  
Listed Companies ◽  
Order Theory ◽  
Corporate Debt ◽  
Pecking Order Theory ◽  
The Impact

This paper aims to investigate the impact of corporate debt on firm growth in Malaysia post Global Financial Crisis 2007-2008. Using a sample of 334 non-financial public listed companies in Bursa Malaysia from 2009 to 2018, this study finds that corporate debt is positively associated with firm growth. The possible reasons for this are; 1) the underdeveloped equity market in Malaysia that forced the firms to take up more debt as a financing resource and 2) the highly associated cost of issuing shares caused the firms to choose debt over equity, to finance the firms’ growth. The result is robust using the random effects panel regression model which mitigates unobserved heterogeneity. The finding supports the Pecking Order theory. The practical contribution of the study lies in the need for firms to deliberately design the application of debt in order to mitigate the associated cost of financial distress that arises from debt. 

Corporate cash holdings and disclosure violations: an empirical investigation of Jordanian listed companies

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Safaa Alsmadi ◽  
Ahmad Alkhataybeh ◽  
Mohammad Ziad Shakhatreh
Keyword(s):  
Positive Impact ◽  
Capital Expenditure ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Listed Companies ◽  
Method Of Moment ◽  
Content Type ◽  
Equity Issues ◽  
Moment Estimation ◽  
The Impact

Purpose This study aims to examine the impact of low-quality financial statements; that is, disclosure violations reported by the Securities Exchange Commission related to the level of cash holdings (CH) of firms listed on the Amman Stock Exchange (ASE). Design/methodology/approach Using panel data from 107 ASE-listed companies from 2009 to 2018, the study uses generalized method of moment estimation to examine the research hypothesis. This study hypothesize that disclosure violations can affect the level of CH and control for several variables that affect this level. Findings The results show that disclosure violations significantly affect the level of CH and that cash flow, capital expenditure and debt issues have a significantly positive impact on corporate CH. On the other hand, the market to book ratio and sales growth were found to be insignificant. Research limitations/implications The limitations of the research include the fact that information on research and development and equity issues were not available, so were not included in the examination. Practical implications It is recommended that managers enhance the quality of disclosures since this allows them to hold lower levels of cash and exploit more investment opportunities. Policymakers are recommended to supervise firm disclosures closely and create ratings for disclosure quality. Originality/value To the best of the author’s knowledge, this is the first empirical research on the association between proven low-quality disclosures and the level of corporate CH among Jordanian listed companies.

scholarly journals IMPACT OF FINANCIAL CRISES ON THE DYNAMICS OF CAPITAL STRUCTURE: EVIDENCE FROM KOREAN LISTED COMPANIES

2019 ◽  
pp. 1950049
Author(s):  
TSOY LYUBOV ◽  
ALMAS HESHMATI
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Listed Companies ◽  
Asian Financial Crisis ◽  
Tax Shield ◽  
Industrial Sectors ◽  
Global Economic Crisis ◽  
High Level ◽  
Optimal Leverage ◽  
The Impact

This study examines the impact of the 1997 Asian financial crisis and the 2008 Global economic crisis on the capital structures of Korean non-financial listed companies. Using a panel data covering 1,159 Korean listed non-financial firms from 10 industrial sectors over a 31-year period (1985–2015), this study investigates the patterns of firms’ capital structures before and after the crises and identifies their speeds of adjustment toward the optimal leverage. This study finds different effects of the two crises on both capital structures and adjustment speeds. The average debt ratio fell significantly after the 1997 Asian financial crisis. The distance between the optimal and the observed debt ratios shrank after the Asian crisis, while the speed of adjustment increased two-fold. Unlike the Asian financial crisis, the global economic crisis of 2008 had a positive effect on companies’ debt ratios and the speeds of adjustments toward the optimal leverage. Our empirical analysis shows that, on average, the Korean non-financial listed companies decreased their debt ratios over the entire period of observation, with the leverage being the highest before the Asian financial crisis and lowest after the global economic crisis. Our results also show that the debt ratios of Korean chaebols were higher than that of non-chaebols. Moreover, we find that the high level of leverage of Korean firms was associated with tangible assets, income variability, size and age of the firm, non-debt tax shield and uniqueness.

scholarly journals Zmiana poziomu efektywności amerykańskiego rynku akcji – od kryzysu finansowego 2007-2009 do pandemii COVID-19

2021 ◽  
pp. 33-47
Author(s):  
Marek Kołatka ◽  
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Rates Of Return ◽  
Linear Relationships ◽  
The Us ◽  
Investment Opportunities ◽  
Global Events ◽  
Fifth Order ◽  
The Impact ◽  
Bds Test

Purpose – Verification of the change in the efficiency of the US stock market from the 2007-2009 financial crisis to the COVID-19 pandemic. Research method – The BDS test (occurrence of non-linear relationships between daily logarithmic rates of return) and the Quenouille autocorrelation test up to the fifth order (occurrence of linear relationships between daily logarithmic rates of return) for the S&P500 and DJIA indices were used. Results – The occurrence of unusual phenomena changes the level of US stock market effectiveness. An increase in inefficiency was observed both during the 2007-2009 financial crisis and now, during the COVID-19 pandemic. Higher-level relationships between rates of return were found during the COVID-19 pandemic. Originality / value / implications / recommendations – A comparison of the impact of two recent global events on the level of efficiency of the US stock market. Additionally, the article indicates which of the two key US stock indices provided more frequent investment opportunities.

Comprehensive Income: which potential effects on firms' performance evaluation and users' decision process?

2016 ◽  
pp. 55-94
Author(s):  
Pier Luigi Marchini ◽  
Carlotta D'Este
Keyword(s):  
Performance Evaluation ◽  
Decision Process ◽  
Financial Analysts ◽  
Listed Companies ◽  
Financial Statement ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
The Impact

The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users' decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users' decision process, although it statistically affects Italian listed entities' performance.

The Determinants of Merger Withdrawals’ Abnormal Returns in The Australian Market

2015 ◽  
pp. 89-110 ◽  
Author(s):  
Thuy Nguyen Thu ◽  
Giang Dao Thi Thu ◽  
Hoang Truong Huy
Keyword(s):  
Financial Crisis ◽  
Event Study ◽  
Abnormal Returns ◽  
Market Response ◽  
Crisis Period ◽  
Valuation Effects ◽  
Event Study Method ◽  
Private And Public ◽  
Method Of Payment ◽  
The Impact

This paper examines the abnormal returns in merger withdrawals in Australia, especially distinguishing the market response between private and public targets. We also study the determinants of those abnormal returns, including the method of payment and the impact of financial crisis periods. Using the event study method, we document that in the Australian context, the announced withdrawal of mergers involving private targets creates significantly negative valuation effects in comparison with the valuation effects in withdrawal of mergers involving public targets. We also find that a financial crisis period strongly affects abnormal returns of merger withdrawals. However, the method of payment does not have any impact on the abnormal returns.

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