scholarly journals Dynamic Cross-Correlation between Online Sentiment and Stock Market Performance: A Global View

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Kewei Xu ◽  
Yuanyuan Pang ◽  
Jiatong Han
Keyword(s):  
Developing Countries ◽  
Stock Market ◽  
Financial Markets ◽  
Cross Correlation ◽  
Market Performance ◽  
Developed Countries ◽  
Correlation Relationship ◽  
Stock Market Performance ◽  
Global Stock Markets ◽  
The Relationship

This paper focuses on investigating the dynamic cross-correlation relationship between online sentiment and returns of major global stock markets based on the MF-DCCA method. We use Daily Happiness (DHS), an index derived from Twitter posts through textual analysis as a proxy of online sentiment. By dividing the global financial markets into developed and developing ones, we are able to test the heterogeneous relationship between stock market performance and sentiment at different economic developing level. Empirical results show that there exists a power-law cross-correlation relationship between financial market and online sentiment in some developed countries and all developing countries, and the relationship is more stable in the developing countries. Moreover, we apply rolling window analysis to capture the dynamic evolution characteristics and find the relationship has a strong consistency over time. Our work provides a much more delicate perspective to test the relationship between online sentiment and financial markets performance and enriches the existing literature.

scholarly journals Measuring the impact of governance quality on stock market performance in developed countries

2020 ◽  
Vol 33 (1) ◽  
pp. 3406-3426 ◽  
Author(s):  
Zulfiqar Ali Imran ◽  
Abdullah Ejaz ◽  
Cristi Spulbar ◽  
Ramona Birau ◽  
Periyapatna Sathyanarayana Rao Nethravathi
Keyword(s):  
Stock Market ◽  
Market Performance ◽  
Developed Countries ◽  
Stock Market Performance ◽  
Governance Quality ◽  
The Impact

scholarly journals Google Search and Stock Market Performance: Evidence from Malaysia

2019 ◽  
Vol 2 (1) ◽  
pp. 49-55
Author(s):  
Kelvin Yong Ming Lee
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Trading Volume ◽  
Market Performance ◽  
Volume Index ◽  
Investment Strategies ◽  
Search Volume ◽  
Stock Market Performance ◽  
Google Search ◽  
The Relationship

Nowadays, the internet changes the way for information searching and processing. Along with that, Google search had become the most popular search engine on the web since it allows users access to the information at a minimal cost. This study intends to investigate the relationship between Google search volume and the Malaysian stock market performance in the aspects of returns, volatility, and trading volume. The sample of this study consisted of 29 listed companies from the Malaysian stock market. The sample period of this study covered the period from 2016 to 2018. The data related to the stock market were downloaded from Investing.com, whereas the data related to Google search were downloaded from the database of Google Trend. The results indicated that the Google search volume index (GSVI) of the previous week tends to have significant positive impacts on the stock price changes. Thus, a higher search volume of the specific company name tends to increase the stock price of the particular company in the following week. Besides that, this study also revealed that the stock market performance tends to be affected by stock market performance in the previous week. Lastly, this study suggested that signals of GSVI need to be included in the investment strategies.  

scholarly journals Price-Earnings Multiple as an Investment Assessment Tool in Analyzing Stock Market Performance of Selected Universal Banks in the Philippines

2019 ◽  
Vol 8 (4) ◽  
pp. 17-33
Author(s):  
Antonio Jaramillo Dayag ◽  
Fernando Trinidad
Keyword(s):  
Growth Rate ◽  
Stock Market ◽  
Assessment Tool ◽  
Stock Exchange ◽  
Market Performance ◽  
Developed Countries ◽  
The Philippines ◽  
Stock Market Index ◽  
Independent Variables ◽  
Stock Market Performance

Price-Earning Ratio or P/E Multiple is a widely used, straightforward investment assessment tool in developed countries. However, the method has not been utilized as much in stock market performance analysis in developing countries such as the Philippines. Using the top ten universal banks in the country, this paper utilized Price-Earnings Ratio [PER] as valuation tool and dependent variable, and sought to determine its value drivers. Used as independent variables are macroeconomic variables gross domestic product [GDP] growth rate, inflation rate, annual interest rate; stock market index Philippine Stock Exchange [PSEi]; and firm-specific variables return on equity [ROE], growth rate of ROE, growth rate of earnings per share, dividend payout ratio [DPO, growth rate of income, and price-book value [PBV] ratio. Results showed that among the independent variables, ROE, PBV ratio, and PSE index are statistically significant. The model’s (R2) is 63.7%, which is a fairly good fit.  

scholarly journals Can ESG Indices Improve the Enterprises’ Stock Market Performance?—An Empirical Study from China

2019 ◽  
Vol 11 (17) ◽  
pp. 4765 ◽  
Author(s):  
Xiang Deng ◽  
Xiang Cheng
Keyword(s):  
Sustainable Development ◽  
Stock Market ◽  
Information Disclosure ◽  
Market Performance ◽  
Ecological Civilization ◽  
Stock Market Performance ◽  
Secondary Industry ◽  
Future Direction ◽  
The Impact ◽  
The Relationship

Environmental, social responsibility, corporate governance (ESG) are increasingly becoming the consensus of enterprises’ development. However, whether the ESG indices of enterprises can improve their performance on stock market is rarely studied. In order to examine the relationship between enterprise’s ESG indices and stock market performance, and to further explore the heterogeneity impact of stock market performance on the enterprises’ ESG indices in different ownership backgrounds, we conducted an empirical analysis based on China’s A-share listed companies. The empirical results show that there is a positive correlation between enterprise’s ESG indices and its stock market performance. Further analysis indicates that, the impact of ESG indices on non-state-owned enterprises is greater than that on state-owned enterprises, and the stock market performance of the secondary industry is much more affected by ESG indices than that of the tertiary industry. Finally, from three aspects including information disclosure, policy protection, transformation and upgrading, recommendations are proposed on the future direction of China’s ecological civilization construction and sustainable development of enterprises.

Determinants of FPI in Developed and Developing Countries

2017 ◽  
Vol 19 (1) ◽  
pp. 187-213 ◽  
Author(s):  
Monica Singhania ◽  
Neha Saini
Keyword(s):  
Developing Countries ◽  
Interest Rate ◽  
Stock Market ◽  
Host Country ◽  
Developing Economies ◽  
Trade Openness ◽  
Market Performance ◽  
Market Returns ◽  
Stock Market Returns ◽  
Stock Market Performance

The pattern of capital inflows in developed and developing economies are different because of dissimilar economic and political structures. From the point of view of host country, especially the developing countries, portfolio flows are considered to play a pivotal role in bridging the saving investment gap and providing foreign exchange to finance current account deficit. While the investors of developed country invest in portfolios of different countries to diversify the risk and earn more returns, foreign portfolio investors generally go for short-term investment to reap the benefits of good economic conditions and they tend to withdraw their investments during the period of recession. This article identifies the determinants of foreign portfolio investment (FPI) in developed and developing economies. Though the movement of capital among different countries is researched in depth by existing literature, the present study adds to literature by identifying the institutional factor involving freedom index. The institutional factors aid in identifying the determinants of FPI among select developed and developing countries. This study seeks to answer, where the funds of foreign portfolio investors are headed. And also the reasons of attractiveness for FPI among different sets of countries. The sample of the study is limited to a set of 19 developed and developing counties for the period of 10 years (2004–2013). We study the determinants of FPI for a group of developed and developing countries using fixed and random effects. Additionally, we use panel generalized method of moments (GMM) suggested by Arellano and Bond (1991, The Review of Economic Studies, 58(2), 277–297). This methodology is suitable to remove the problem of endogeneity which static model is not able to capture. The results of model also incorporates persistence effect considering lagged value of dependent variable. The study empirically tests the various factors that determine the inflows of FPI and analyses their performance during different stages of the economic cycle in the last 10 years. Implicitly, in case of developed countries, it was observed that interest rate differential, trade openness, host country stock market performance and US stock market returns are significant trendsetter, while in developing countries, freedom index, interest rate differential, host country stock market performance, trade openness, US stock market returns and crisis period (2006–2008) significantly influence the inflow of FPIs. Dynamic model supports that as a group of 19 countries, portfolio investments are significantly influenced by interest rate differentials, freedom index, US stock market and host country stock market returns.

scholarly journals The Impact of Learning Organization Practices on Subjective Performance of Employees: The Case of Islamic Financial Institutions (IFIs) of Developing Countries

2020 ◽  
Vol 7 ◽  
pp. 1-1
Author(s):  
Muhammad Abdul Rehman Shah ◽  
Meher Bano ◽  
Shaherbano
Keyword(s):  
Developing Countries ◽  
Financial Markets ◽  
Employee Engagement ◽  
Learning Organization ◽  
Financial Institutions ◽  
Developed Countries ◽  
Learning System ◽  
Islamic Financial Institutions ◽  
The Impact ◽  
The Relationship

Purpose: The objective of this study is to explore the relationship between learning organization practices and subjective performance of employees moderated by employee engagement in in emerging financial markets of Malaysia, Pakistan, and Indonesia. There are identified continuous learning, collaboration and team learning, system to capture learning, empower employees, the connection to organization, strategic leadership, inquiry and dialogue as seven dimensions of learning organization practices. All of them affect more or less the subjective performance of employees in any organization. Research Design: We select the sample of 230 people working in different departments of Islamic Financial Institutions (IFIs) of developing countries; Malaysia, Pakistan, and Indonesia. Data is collected from the concerned organizations. Findings: On empirical basis, the relationship is found highly significant, learning organization is affecting subjective performance of employees with maximum coefficient of β=.681, which means an increase in learning organization practices will affect subjective performance of employees positively in emerging Islamic financial markets of Malaysia, Pakistan, and Indonesia. Practical implications: The study recommends that learning organization practices should be considered to increase the subjective performance of the employees in IFIs of developing countries. Originality/ value: An association between learning organization practices and subjective performance is explored with major concentration on conventional institutions of the developed countries, whereas this study explores the impact of learning organization practices on subjective performance of employees in the case of Islamic financial institutions (IFIs) of developing countries.

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