Analysis of Institutional Factors Affecting Share Prices: The Case of National Stock Exchange

2018 ◽  
Vol 19 (3) ◽  
pp. 707-721 ◽  
Author(s):  
Neeraj Nautiyal ◽  
P. C. Kavidayal
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Transition Period ◽  
Stock Exchange ◽  
Market Price ◽  
Negative Relationship ◽  
Value Added ◽  
Price Variation ◽  
Wide Range ◽  
The Impact

This study offers empirical findings on the impact of institutional variables on firm’s stock market price performance. In order to identify the influence of companies financial on NIFTY 50 Index, our sample consists of balanced panel of 30 actively traded companies (that becomes the study’s index representative) over a massive transition period, 1995–2014. Attempts have been made with a wide range of econometric models and estimators, from the relatively straightforward to (static) more complex (dynamic panel analyses) to deal with the relevant econometric issues. Results indicate that increasing debt in capital structure does not establish any significant relation with the stock prices. Earnings per share (EPS) shows a poor explanation of price variation. Economic value added (EVA) indicates a positive relation with current as well as previous year’s stock price performances. However, dividend payout (DIVP) and dividend per share (DPS) achieve negative relationship at moderately significant level. The present study confirms that performance of companies fundamental ratios will be essential and immensely helpful to investors and analysts in assessing the better stocks that belong to different industry groups.

Impact of Dividend Policy on Variation of Stock Prices: Empirical Study of Vietnam

2019 ◽  
pp. 96-106 ◽  
Author(s):  
Dang Ngoc Hung ◽  
Binh Minh Tran ◽  
Dung Tran Manh
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Price Variation ◽  
Listed Firms ◽  
Economic Decisions ◽  
The Impact

This research is conducted to investigate the impact levels of dividend policy on stock prices variation in the case of the stock exchange of an emerging country − Vietnam. Data were collected from 248 listed firms on the Vietnamese stock market for the period from 2014 to 2017. By employing ordinary least squares (OLS) and quantile regression (QR), we found that there is a negative relationship between dividend policy and variation of stock prices. Some variables including income variation, long term liabilities and growth have positive relationships with stock price variation whereas firm size has no impact on it. We also found that firms using low dividend yields influence stock prices variation in a clearer way. The results of this study are important for management in emerging countries, and in this case Vietnam, to have a proper dividend policy because dividend policy is crucial information for stakeholders to make economic decisions.

scholarly journals Causal Relation Between Stock Market Performance and Firm Investment in China: Mediating Role of Information Asymmetry

SAGE Open ◽  
2019 ◽  
Vol 9 (4) ◽  
pp. 215824401988514
Author(s):  
Ghulam Hussain Khan Zaigham ◽  
Xiangning Wang ◽  
Haji Suleman Ali
Keyword(s):  
Information Asymmetry ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Causal Relation ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Price Performance ◽  
Stock Market Performance ◽  
The Impact

The main objectives of this study are to examine the impact of stock price performance on firm’s investment and to investigate the counter impact of changes in investment expenditures on stock price performance. The random effects model was applied on the panel data of Chinese manufacturing firms listed at the Shanghai Stock Exchange and the Shenzhen Stock Exchange during the period 2002 to 2016. The sample contains 398 firms with 5,970 observations. Although there is a statistically significant and negative relationship between stock price and investment expenditures, the impact of stock price on investment expenditures is far greater than that of investment expenditures on stock price. Information asymmetry positively mediates both investment sensitivity to stock prices and stock prices sensitivity to investment. This study is a valuable contribution toward the analysis of investment decision making by manufacturing firms in China. It also provides guidelines for investors to assess the informational status of the capital market before making investment decisions and to comprehensively understand the different decisions made by firms with regard to the issue of new stocks and the indirect information attached with such issues.

scholarly journals Fundamentals of Stock Price in Nepalese commercial banks

2019 ◽  
Vol 4 ◽  
pp. 83-98
Author(s):  
Prem Prasad Silwal ◽  
Samrina Napit
Keyword(s):  
Commercial Banks ◽  
Stock Price ◽  
Stock Exchange ◽  
Market Price ◽  
Negative Relationship ◽  
Influential Factor ◽  
Share Price ◽  
Cross Sectional ◽  
Book Value ◽  
Price Earnings Ratio

The aim of this study is to ascertain the determinants of the stock market price in Nepalese commercial banks for the period of 2065/66 to 2074/75. It is based on pooled cross-sectional data of ten banks for 10 years whose stocks are listed in Nepal stock exchange. The study employed correlational and causal comparative research design and result reveals that book value per share, price earnings ratio, return on equity have positive relationship with stock price. Dividend yield has positive but minimum influence on the price of the stock whereas size has negative relationship and is statistically insignificant with stock price. Further, it reveals that book value per share is a most influential factor that determines stock price in Nepal.

Terrorism and Stock Market Linkages: An Empirical Study from a Front-line State

2017 ◽  
Vol 18 (2) ◽  
pp. 365-378 ◽  
Author(s):  
Imtiaz Arif ◽  
Tahir Suleman
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Negative Impact ◽  
Stock Exchange ◽  
Series Data ◽  
Front Line ◽  
Long Run ◽  
Factor Index ◽  
The Impact

This article investigates the impact of prolonged terrorist activities on stock prices of different sectors listed in the Karachi Stock Exchange (KSE) by using the newly developed terrorism impact factor index with lingering effect (TIFL) and monthly time series data from 2002 (January) to 2011 (December). Johansen and Juselius (JJ) cointegration revealed a long-run relationship between terrorism and stock price. Normalized cointegration vectors are used to test the effect of terrorism on stock price. Results demonstrate a significantly mixed positive and negative impact of prolonged terrorism on stock prices of different sectors and show that the market has not become insensitive to the prolonged terrorist attacks.

scholarly journals The Impact of Corona Virus Disease 2019 (COVID-19) on Indonesia Property Stock Index

2021 ◽  
Vol 4 (2) ◽  
pp. 85-96
Author(s):  
Kevin Ronaldo Gotama ◽  
Njo Anastasia
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Virus Disease ◽  
Sampling Technique ◽  
Stock Index ◽  
Event Analysis ◽  
Corona Virus ◽  
Before And After ◽  
The Impact

A promising investment in the property sector is due to appreciation in property value. As an economic instrument, the stock market, inseparable from different environmental factors, was triggered by incident in Wuhan, Hubei Province, China, an outbreak of acute respiratory tract infection 2 (SARS-CoV-2) in December 2019 and then spread across China. This study is a comparative study on the stock index of the property sector on the stock exchange of countries affected by the Corona Virus Disease 2019 (COVID-19) case, with a purposive sampling technique according to certain criteria for sample selection. The event analysis was performed by analyzing market reaction; with COVID-19 incident effect as one of the event tests, the stock price index. The findings of the study indicate that there is an index response to the incident of COVID-19. The reflected reaction shows in the abnormal return and trade volume activity before and after the incident. Thus, this study is expected to be taken into consideration for stock investors regarding the impact of the Corona Virus Disease 2019 (COVID-19) pandemic on stock prices, by providing an overview of changes in stock prices during the monitoring period, so that they can make investment decisions in the period before and after incident.

Can microblogging information disclosure reduce stock price synchronicity? Evidence from China

2018 ◽  
Vol 44 (2) ◽  
pp. 282-305 ◽  
Author(s):  
Donghua Zhou ◽  
Yujie Zhao ◽  
Philip T Lin ◽  
Bin Li ◽  
Adrian (Waikong) Cheung
Keyword(s):  
Stock Prices ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Relationship ◽  
Jel Classification ◽  
Specific Information ◽  
Chinese Stock Market ◽  
Stock Price Synchronicity ◽  
Alternative Measures ◽  
The Impact

We study the relationship between stock price synchronicity and information disclosure of firms listed in the Chinese stock market, using hand-collected data on firms’ official microblogging content in Sina Weibo, a popular microblogging service in China. We find that after controlling for the impact of traditional media, the number of Weibo tweets is related negatively to stock price synchronicity, indicating that stock prices incorporate firm-specific information disclosed in the firm’s official Weibo. Number of microblogging fans can strengthen this negative relationship. Our result is robust to alternative measures of stock price synchronicity, microblogging information disclosure, and to endogeneity issues. JEL Classification: G14, G15

scholarly journals ANALYSIS OF THE EFFECT OF FIXED ASSETS ON THE STOCK PRICE OF THE COMPANY INDEXED LQ45 ON THE INDONESIA STOCK EXCHANGE

2021 ◽  
Vol 3 (3) ◽  
pp. 48-51
Author(s):  
Dwi Urip Wardoyo ◽  
Liana Suci Karnila Manurung ◽  
Novia Egita Br. Tarigan
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Sampling Method ◽  
Stock Exchange ◽  
Science Program ◽  
Testing Program ◽  
Program Testing ◽  
Fixed Assets ◽  
The Impact ◽  
Positive Effect

The purpose of this research is to examine the effect of fixed assets and the impact of these variables on stock prices. The population used are companies that are included in the LQ45 index contained in the IDX with a period of 3 years (2018-2020). The number of samples used were 15 companies and used a purposive sampling method using the SSPS (Statistical Package for Social Science) program testing program. The results of this study are fixed assets in the company have a positive effect on shares.

Pengaruh Rasio Keuangan, Economic Value Added, Dan Market Value Added Terhadap Harga Saham Perusahaan Terindeks Pefindo 25

2018 ◽  
Vol 26 (1) ◽  
pp. 29-47
Author(s):  
Dheni Indra Kusuma
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Small And Medium Enterprises ◽  
Economic Value ◽  
Market Price ◽  
Value Added ◽  
Market Value ◽  
Financial Ratios ◽  
Economic Value Added ◽  
Market Value Added

The capital market has been progressing very rapidly. The annual financial statements of companies listed on the Indonesia Stock Exchange have become one of the investor analysis tools to take a business action. The decision of the investor will affect the value of the company reflected through the stock market price of the company. Financial ratios are still trusted by investors as the basis for analysis in decision making. Methods of Economic Value Added, and Market Value Added emerged as an alternative complement information for investors to analyze and make decisions.This study aims to examine the influence of financial ratios, Economic Value Added, and Market Value Added on stock prices. The sample to be observed are companies that are included in the index PEFINDO 25. The growing of beginner investors and Small and Medium Enterprises that entered the Indonesia Stock Exchange became the basis of interest researchers to conduct this research. Hypothesis testing was performed by using crosssectional regression for each year observation from 2010-2015 and all pooled regression years. This study uses observational company data selected by purposive sampling year 2010-2015 from all companies listed in Indonesia Stock Exchange included in index PEFINDO 25. The results shows that variables of DER, PER, EVA, and MVA affects in the companies. Keywords: Financial Ratios, Economic Value Added, Market Value Added

Does intellectual capital have any influence on stock price crash risk?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Adelia Dyaning Pratiwi ◽  
Mahameru Rosy Rochmatullah
Keyword(s):  
Intellectual Capital ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Price Volatility ◽  
Crash Risk ◽  
Company Performance ◽  
Content Type ◽  
The Impact

PurposeThis paper explores the influence between intellectual capital (IC) and the risk of stock price crashes by using company performance as an intervening variable.Design/methodology/approachThis study empirically analyzes the impact of the efficiency of IC on stock price crash risk using a sample size of 152 companies listed on the Indonesia Stock Exchange (IDX) during 2018. To test the research hypotheses, regression analysis and path analysis were applied. In addition, the researchers added exploration to several studies to strengthen the results of this study.FindingsThis study’s findings indicate that investors' optimistic (pessimistic) sentiment regarding stock price volatility has obscured aspects of the financial performance of listed companies. This finding implies that investor sentiment has dominated influence on stock price crash risk so that the aspects of IC are obscured.Originality/valueThis research provides new information that IC disclosure in the stock market needs to include knowledge of the volatility of stock prices in order to reveal stock price crash risk.

scholarly journals The Impact of Corporate Governance on Stock Price and Trade Volume

2016 ◽  
Vol 6 (2) ◽  
pp. 27 ◽  
Author(s):  
Wafaa Salah Mohamed ◽  
May M. Elewa
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Stock Prices ◽  
Stock Price ◽  
Trading Volume ◽  
Stock Exchange ◽  
Trade Volume ◽  
Publicly Traded ◽  
Publicly Traded Firms ◽  
The Impact

The purpose of this paper is to investigate whether corporate governance is associated with stock prices and trade volume for 62 publicly traded firms on the Egyptian Stock Exchange during 2007-2014. The authors hypothesize that firms with strong corporate governance have a significant impact on stock prices and trade volume. To examine the associations, a multiple regression analysis is used. Consistent with the first hypothesis, this study finds firms with strong corporate governance have a significant impact on stock prices while has no significant impact on trade volume. Findings indicate that quality of corporate governance can affect firms' stock price while trading volume is not affected by the strength of corporate governance. The results suggest that Egyptian firms should improve their corporate governance as it has a significant effect on firms’ value. Also, providing diverse sources of financial information other than the financial statements and to ensure the presence of high-quality financial reporting and strong investor protection. This study is carried on non-financial firms only. This research is important to regulators and standard setters as it shows the information that affects investors’ decisions and the importance of its disclosure. It pays attention of standard setters for setting a corporate governance framework for improving the level of disclosures of publicly traded firms in Egypt.

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