scholarly journals The Economics of the Name Change: Long-term Adjustments towards EU/NATO or Short-term Resolution of Political Uncertainty?

2021 ◽  
Vol 12 (1) ◽  
pp. 86-105
Author(s):  
Bojan Srbinoski ◽  
Klime Poposki ◽  
Ksenija Dencic-Mihajlov ◽  
Milica Pavlovic
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Eu Enlargement ◽  
Political Uncertainty ◽  
Short Term ◽  
Market Reactions ◽  
Name Change ◽  
Stock Market Reactions ◽  
The Eu

North Macedonia and Greece resolved the 27-year country name dispute and removed the main hurdle for North Macedonia to start the accession processes towards the EU and NATO. The paper analyzes the stock market movements around several events related to the name issue resolution to uncover whether Macedonian companies experienced stock price adjustments according to the long-term benefits/costs of joining the EU/NATO. The dynamics of the market reactions suggest that the investors reacted systematically to the short-term political uncertainty created around the referendum rather than to the long-term perspectives of the EU/NATO integration. We integrate the knowledge from the literature which explores stock market reactions to EU enlargement/exit and political elections and provide contributions for researchers and policymakers.

scholarly journals The Effect of Macroeconomic Variables On the Saudi Stock Market

2019 ◽  
Vol 7 (12) ◽  
pp. 126-152
Author(s):  
Amani Mohammed Aldukhail
Keyword(s):  
Stock Market ◽  
Performance Indicators ◽  
Stock Price ◽  
Price Index ◽  
Inflation Rate ◽  
Market Value ◽  
Short Term ◽  
Macroeconomic Variables ◽  
Time Deposits

This study aimed at exploring the effect of macroeconomic variables on the activity of the Saudi stock market for the period 1997-2017. Macroeconomic variables were: GDP, interest rate on time deposits, inflation rate. The variables of the Saudi stock market activity were: stock price index, market value of shares, value of traded shares. To achieve this objective, the researcher used the ARDL model for the self-regression of the lagged distributed time gaps. The most important results of the research are: The effect of macroeconomic variables on the performance indicators in the Saudi stock market is not important in the short term and is statistically significant in the long term according to the proposed models, so investors in this market can rely on macroeconomic variables in Predict the movement of the stock market and predict long-term profits and losses.

SHORT- AND LONG-TERM EFFECTS OF THE 9/11 EVENT: THE INTERNATIONAL EVIDENCE

2005 ◽  
Vol 08 (07) ◽  
pp. 947-958 ◽  
Author(s):  
VINCENT RICHMAN ◽  
MICHAEL R. SANTOS ◽  
JOHN T. BARKOULAS
Keyword(s):  
Stock Market ◽  
Capital Markets ◽  
Systematic Risk ◽  
Point Of View ◽  
Long Term Effects ◽  
Market Reactions ◽  
Theoretic Point ◽  
Short And Long Term ◽  
Stock Market Reactions

This paper analyzes the short- and long-term effects of the September 11, 2001 terrorist attacks on a comprehensive sample of stock market indices from 33 industrial and emerging economies. From a finance-theoretic point of view, we employ the international capital asset pricing model (ICAPM) to analyze the incidence of the 9/11 event. Consistent with expectations, we document statistically negative short-term stock market reactions to the 9/11 event for 28 countries. More importantly, we find increases in the level of systematic risk for 10 stock markets which attest to the presence of negative permanent effects emanating for the 9/11 event. However, a great many capital markets (including the US, Canada, Japan, China, Russia, and the largest European economies) did not experience statistically significant increases in systematic risk in the post-9/11 period. The decisiveness of the evidence clearly points in the direction of resilience and flexibility of the world capital markets.

scholarly journals Do Higher-Rated or Enhancing ESG of Firms Enhance Their Long–Term Sustainability? Evidence from Market Returns in Korea

2020 ◽  
Vol 12 (7) ◽  
pp. 2664 ◽  
Author(s):  
Yeonwoo Do ◽  
Sunghwan Kim
Keyword(s):  
Stock Market ◽  
Firm Value ◽  
Stock Price ◽  
Abnormal Returns ◽  
Market Returns ◽  
Short Term ◽  
Stock Market Returns ◽  
Listed Firms ◽  
The Third

In this study, we investigate the effects of the level and changes in environmental, social and corporate governance (ESG) rating, an index developed to represent a firm’s long-term sustainability, on the stock market returns of Korea Composite Stock Price Index (KOSPI) listed firms over the period 2011–2018. We find that the changes in ESG ratings have statistically significant short-term effects on their abnormal returns. However, their impacts on short-term abnormal returns decrease some days after the disclosure and become negative in the third year. The results imply that investors in the Korean stock market do not view corporate social responsibility activities as a means of supporting their long-term sustainability, judging from the firm value for a long period after their rating. Rather, based on the effects of the changes on coefficient signs over the period—positive in the year and the year after, no effects in the following year, and negative in the third year and later—we can infer that the short-term oriented market sentiments of investors might worsen their long-term stock performances, thus deteriorating their sustainability and growth opportunities.

Commentary on the Enigma of Chinese Performance: Do Chinese Investors’ Reactions to Merger Announcements Accurately Reflect Prospects for Success?

2016 ◽  
Vol 12 (2) ◽  
pp. 249-257 ◽  
Author(s):  
Michael N. Young
Keyword(s):  
United States ◽  
Stock Market ◽  
Organizational Development ◽  
The United States ◽  
Chinese Stock Market ◽  
Short Term ◽  
Market Reactions ◽  
Event Study Method ◽  
Stock Market Reactions ◽  
Merger Announcements

Although McCarthy, Dolfsma, and Weitzel (2016) cover much ground in their study, in this commentary I focus on alternative explanations for the empirical results indicating that Chinese acquirers outperformed acquirers from other countries – particularly acquirers from the United States. First, based on research I have done with colleagues (e.g., Chen & Young, 2010; Young & McGuinness, 2001) and that of a doctoral student (Tang, 2016), I suggest that comparison of Chinese stock market reactions to merger announcements with stock market reactions to merger announcements from more mature markets, such as the United States, may create some misleading results. The Event Study Method (ESM) used in this study is a measure of investors’ short-term reactions to unanticipated events and it assumes that investors are capable of accurately evaluating such events (MacKinlay, 1997; McWilliams & Siegel, 1997). I suggest that, given the relative newness of Chinese stock markets, Chinese investors may have reacted more positively to merger announcements regardless of the mergers’ prospects for success. Second, similar to Shapiro and Li (2016), I suggest that stages of industry and organizational development better explain the actual motivation and success of Chinese acquirers than does a general theory of culture or corporate governance traditions.

scholarly journals Stock market reactions to the Japanese Sarbanes-Oxley act of 2006

2009 ◽  
Vol 7 (2) ◽  
pp. 126-136 ◽  
Author(s):  
Kosuke Seino ◽  
Fumiko Takeda
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
High Ratio ◽  
Corporate Accountability ◽  
Market Reactions ◽  
Sarbanes Oxley ◽  
Price Reactions ◽  
Stock Price Reactions ◽  
Stock Market Reactions

This article investigates stock market reactions to announcements related to the introduction of the Financial Instruments and Exchange Law or the so-called Japanese Sarbanes-Oxley Act (J-SOX), which was enacted to reinforce corporate accountability and responsibility. We find that the announcements leading to the passage of the J-SOX raised stock prices of firms listed on the First Section of the Tokyo Stock Exchange. Another finding is that firms with a high ratio of foreign shareholders or leverage experienced more positive stock price reactions. By contrast, whether the firm was audited by Big 4 audit firms did not seem to matter to investors. In addition, large firms tended to have more negative stock price reactions than small firms.

The Financial Information Content of Perceived Quality

1994 ◽  
Vol 31 (2) ◽  
pp. 191-201 ◽  
Author(s):  
David A. Aaker ◽  
Robert Jacobson
Keyword(s):  
Stock Market ◽  
Firm Value ◽  
Stock Price ◽  
Stock Return ◽  
Business Performance ◽  
Perceived Quality ◽  
Short Term ◽  
Quality Perceptions ◽  
Current Term

The authors investigate whether movement in a firm's stock price, that is, a measure of firm value, is associated with information contained in perceived quality measures. In a model that also allows for the effect of economywide factors and a firm's return on investment, they find a positive relationship between stock return and changes in quality perceptions. These results imply that the quality measure contains information, incremental to that reflected by current-term accounting measures, about future-term business performance. They suggest that managers should convey information to the stock market, such as the brand's quality image, useful in depicting the long-term prospects of the business. By doing so, the stock market will rely less on short-term measures of business performance, and managers will be freer to undertake strategies necessary for ensuring the long-term viability of their firms.

The Effects of Accounting Expertise of Board Committees on the Short- and Long-Term Consequences of Financial Restatements

2020 ◽  
pp. 0148558X2093494 ◽  
Author(s):  
Somnath Das ◽  
James Jianxin Gong ◽  
Siyi Li
Keyword(s):  
Stock Market ◽  
Moderating Effects ◽  
Market Reactions ◽  
Board Committees ◽  
Financial Expertise ◽  
Financial Restatements ◽  
Long Term Consequences ◽  
Accounting Expertise ◽  
Stock Market Reactions

Using financial restatements as the contextual setting, we examine whether the accounting expertise of board committees affects the consequences of financial reporting quality. We analyze both short-term consequences—stock market reactions surrounding restatement announcements, and long-term consequences—the incidence of Securities and Exchange Commission (SEC) Accounting and Auditing Enforcement Actions (AAERs), and CEO and CFO turnover after restatements. Our results show that the presence of audit committee members with accounting expertise moderates the consequences of restatements, resulting in less negative stock market reactions and a lower probability of CEO turnover. In contrast, the audit committee’s nonaccounting financial expertise increases the likelihood of AAERs. For the compensation committee, we find that accounting expertise reduces the probability of CEO turnover, while nonaccounting financial expertise exacerbates the negative stock returns around restatement announcements and increases the probability of AAER. In the post–Sarbanes–Oxley Act (SOX) period, restatements have resulted in less severe consequences as companies have increased their propensity to hire accounting experts on the board. Correspondingly, we document that the moderating effects of accounting expertise become less significant, in part because the moderating effects are offset by the changed investor expectations. Overall, our results suggest that accounting expertise of board committees helps mitigate the negative consequences of restatements.

scholarly journals Hybrid Deep Learning Based Stock Market Prediction with both Sentiment and Historic Trend Data

2020 ◽  
Vol 9 (4) ◽  
pp. 1166-1171
Keyword(s):  
Deep Learning ◽  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Accurate Prediction ◽  
Short Term ◽  
Stock Market Prediction ◽  
Trend Forecasting ◽  
Trend Data

Stock market is highly volatile and it is necessary for investors to have an accurate prediction of stock prices for a better profitability. Towards this need many methods have been proposed for stock market prediction with aim to provide a higher prediction accuracy. Current methods for stock market prediction are in two categories of machine learning and statistics based. Considering the need for accurate prediction in short term and long term, the merits of both methods must be combined for accurate prediction. This work proposes a hybrid deep learning approach for stock market prediction which combines the historic price-based trend forecasting along with stock market sentiments expressed in twitter to predict the stock price trend.

scholarly journals Do mergers and acquisitions in china create value to acquiring firms?

2015 ◽  
Vol 12 (4) ◽  
pp. 117-140 ◽  
Author(s):  
Geeta Duppati ◽  
Sazali Abidin ◽  
Jiani Hu
Keyword(s):  
Mergers And Acquisitions ◽  
Stock Returns ◽  
Abnormal Return ◽  
Factor Model ◽  
Market Model ◽  
Short Term ◽  
Market Reactions ◽  
Stock Market Reactions ◽  
Term Performance

This paper investigates both short-term and long-term stock market reactions to the announcement of domestic and cross-border Mergers and Acquisitions (M&As) by Chinese acquiring companies. For short-term performance, this study uses market model methods to calculate daily abnormal return and measure how M&A deals announcement impact on stock returns. For the long-term performance, this study uses market model, capital asset pricing model and Fama-French three factor model to calculate monthly abnormal return and measure whether M&A deals create value to shareholders. This paper also examines differences in operating performance between pre-acquisition and post-acquisition, and finally investigates whether cash flow from operations, Tobin’s Q and profit margin are significantly changed by M&A deals

Macroeconomic Factors and Pakistani Equity Market”

2004 ◽  
Vol 43 (4II) ◽  
pp. 619-637 ◽  
Author(s):  
Muhammad Nishat ◽  
Rozina Shaheen
Keyword(s):  
Stock Market ◽  
Industrial Production ◽  
Stock Prices ◽  
Stock Price ◽  
Consumer Price Index ◽  
Reverse Causality ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Equilibrium Relationships

This paper analyzes long-term equilibrium relationships between a group of macroeconomic variables and the Karachi Stock Exchange Index. The macroeconomic variables are represented by the industrial production index, the consumer price index, M1, and the value of an investment earning the money market rate. We employ a vector error correction model to explore such relationships during 1973:1 to 2004:4. We found that these five variables are cointegrated and two long-term equilibrium relationships exist among these variables. Our results indicated a "causal" relationship between the stock market and the economy. Analysis of our results indicates that industrial production is the largest positive determinant of Pakistani stock prices, while inflation is the largest negative determinant of stock prices in Pakistan. We found that while macroeconomic variables Granger-caused stock price movements, the reverse causality was observed in case of industrial production and stock prices. Furthermore, we found that statistically significant lag lengths between fluctuations in the stock market and changes in the real economy are relatively short.

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