Financial Attributes of Research & Development Expenditures for KOSDAQ Listed Firms with Headquarters in Chungcheong Province in the Korean Capital Market

2019 ◽  
Vol 15 (4) ◽  
pp. 125-143
Author(s):  
Hanjoon Kim
Keyword(s):  
Capital Market ◽  
Research Development ◽  
Listed Firms

scholarly journals CORPORATE STRATEGY DEVIATION AND INSTITUTIONAL INVESTOR RECOGNITION: COMPLEX NETWORK-BASED AND GRAPH CLUSTERING ANALYSIS

2021 ◽  
Vol 0 (0) ◽  
pp. 1-30
Author(s):  
Chunyan Lin ◽  
Jia Liu ◽  
Peide Liu
Keyword(s):  
Capital Market ◽  
Institutional Investors ◽  
Clustering Analysis ◽  
Corporate Strategy ◽  
Strategic Choices ◽  
Research Perspective ◽  
Listed Firms ◽  
The Common ◽  
The Stability ◽  
The Relationship

In this paper, the quantitative analysis is implemented on the relationship between strategy deviation of listed firms and institutional investors’ recognition. For research methodology, financial complex networks and clustering techniques are employed to measure the de-gree of recognition by creating links to the common stockholding behaviour of institutional investors. Besides, quarterly panel data from 2006 to 2020 are constructed for an innovative study of the degree of recognition of institutional investors’ strategy deviation of listed firms under different innovation fields, firm properties, and market style heterogeneity and asymmetry. The stability test is conducted by the transformation of the measures and methods, thereby effectively avoiding the “cluster fallacy”. We validate the mechanism by which the differences in strategic choices and propensities of listed firms affect capital market recognition, and enrich the microscopic research perspective and methodology on related issues.

scholarly journals Institutional investors’ response to improved corporate governance: Evidence from the brazilian capital market

2018 ◽  
Vol 64 (4) ◽  
pp. 135
Author(s):  
Eduardo Schiehll ◽  
Melissa Gerhard ◽  
Clea Beatriz Macagnan
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Institutional Investors ◽  
Stock Exchange ◽  
Emerging Market ◽  
Agency Cost ◽  
Data Set ◽  
Listed Firms ◽  
Internal Governance Mechanisms ◽  
Governance Quality

<p>This study examines whether normative pressures from stock market regulators to improve the governance quality of Brazilian listed firms influence the participation and activism of institutional investors. More specifically, we investigate the association between institutional investor’s ownership and firm’s voluntary adhesion to the São Paulo Stock Exchange (B3) differentiated levels of corporate governance quality. Empirical testing is performed on a ten-year (2002–2011) panel data set from a sample of 439 firms listed on the B3. Our findings suggest that firms in differentiated corporate governance levels, that is, with better level of transparency and commitment to monitoring, are more attractive to institutional investors. We interpret this result as evidence supporting the shareholder activism movement, attributed by several scholars to institutional shareholders. Our study contributes to the governance literature on the firm’s response to normative pressures and the ability of internal governance mechanisms to signal lower agency cost to capital market. Our evidence also contributes to the ongoing discussion about the role and influence of institutional investors in the functioning of capital markets, and more specific in emerging market like Brazil.</p>

Impact of shariah-compliant status on firms’ decision to practice forex hedging

2019 ◽  
Vol 10 (5) ◽  
pp. 756-769
Author(s):  
Ruzita Abdul-Rahim ◽  
Adilah A. Wahab ◽  
Nor Amalina Yusoff
Keyword(s):  
Capital Market ◽  
Financial Management ◽  
Annual Reports ◽  
Security Market ◽  
Panel Regression ◽  
Socially Responsible ◽  
Content Type ◽  
Listed Firms ◽  
Gold Silver ◽  
The Status

Purpose The purpose of this paper is to investigate whether the shariah-compliant status of the firms negatively influences their use of foreign exchange hedging instruments. Design/methodology/approach This paper uses a logit panel regression on 350 firm-year observations from 70 nonfinancial listed firms over the period from 2010 to 2014. Shariah-compliant companies account for about 84 per cent of the sample firms. Findings Preliminarily, the results show that none of the samples of the shariah-compliant firms report any use of Islamic hedging instrument, either in the form of wa’d or tawarruq. The results of the study’s logit panel regression contradict the authors’ prediction that the shariah-compliant status negatively influences firms’ decision to hedge. In contrast, shariah-compliant companies are twice as likely as their conventional counterparts in adopting forex hedging. Research limitations/implications This study is limited to information disclosed in the items 31, 36 and 37 of financial management policies in the annual report. However, given that shariah-compliant firms must abide by the limit of 5 per cent profits before tax from clearly prohibited activities (including riba’), the need for exclusive disclosure on the adoption of Islamic or conventional hedging appears to be imperative for the viability of the Malaysian Islamic capital market. Practical implications In evaluating the shariah compliance of a company, investors (individual or institutional) must look further than just interest-based riba’ in mixed-business companies to ensure that they comply with the 5 per cent maximum requirement on the non-halal business contribution to profit. This is because the finding of this study indicates that shariah-compliant companies are twice as likely to adopt forex hedging, when none of them reports the use of Islamic hedging tools. Investors must therefore give ample allowance to riba’ that can be induced through the use of conventional forex hedging instruments. This is until the security market regulator imposes a requirement on shariah-compliant companies an explicit disclosure of the use of Islamic versus conventional hedging tools, as they had done in the case of Islamic versus conventional debt instruments. Social implications Muslim and socially responsible investors rely on the Shariah-compliant status of the company in ensuring that their wealth grows according to the Shariah principles. To sustain and develop the Islamic capital market which the firms have been relying on for external capital, Shariah-compliant firms and the authority awarding the status are equally responsible for honoring the trust that these investors by ensuring the permissibility (halal) of the business and the conduct of their business. Originality/value Conventional forex hedging instruments are criticized for violating as-sarf, a shariah principle, which requires the exchanges of particular assets (gold, silver and currency) to be delivered on the spot, and thereby infusing riba’ al-fadhl. Although Islamic (wa’d- or tawarruq-based) hedging instruments are widely available by Islamic banks in this country since they were introduced by Bank Negara Malaysia in 2010, paradoxically, the authors’ observation indicates that none of the studied firms reports the adoption of these instruments in their annual reports.

scholarly journals A mini review of the Chinese stock market: From 1978 to 2010

2013 ◽  
Vol 10 (2) ◽  
pp. 700-707 ◽  
Author(s):  
Yi An ◽  
Umesh Sharma ◽  
Harun Harun
Keyword(s):  
Stock Market ◽  
Economic Reform ◽  
Financial Reporting ◽  
Future Development ◽  
Capital Markets ◽  
Capital Market ◽  
Chinese Stock Market ◽  
Listed Firms

The Chinese economic reform, starting from 1978, facilitated the emergence and development of the capital markets. This paper provides a brief review of the Chinese stock market from various perspectives, such as the regulation, issuance of shares, shareholding structure and financial reporting of listed firms, and future development. It is expected that our paper could offer readers andresearchers who are in the Chinese capital market, particularly in the area of accounting and finance, a general understanding of the market.

scholarly journals Dividend Policy Trend: A Comprehensive Study on the Listed Industrial Sector of Bangladesh

2019 ◽  
pp. 2
Author(s):  
Mohammad Shahidul Islam ◽  
Adnan Atm
Keyword(s):  
Capital Market ◽  
Dividend Policy ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Medium Size ◽  
Cash Dividend ◽  
Parametric Test ◽  
Listed Firms ◽  
Size Firm ◽  
The Capital Market

The financial decision is rotated around the dividend decision. The objective is to identify the dividend pattern and the management’ views of dividend policy for revealing the present scenario of dividend practices in the capital market of Bangladesh. The parametric test, non-parametric test and percentile are used for inferring the result. In the manufacturing sector, the miscellaneous sector provides the highest payout. The DPS, EPS, MPS of the large size firm is better than small and medium size firms. The payout of the older firms is more than the newly listed firms. The highest payouts are in medium leveraged firm, low risk’s firm, medium PE ratio’s firm. The survey results reveal that the both shareholders and companies prefer the cash dividend most because of majority shareholders’ expectation. The most of the companies pay cash dividend with stable payout. The majority companies follow increasing trend in dividend payment but there is no satisfactory research to justify the investors’ preference. The capital market related stakeholders should follow these findings.

Impact of Corporate Fraud on Foreign Direct Investment?

2021 ◽  
pp. 148-165
Author(s):  
Radwan Alkebsee ◽  
Gaoliang Tian ◽  
Konstantinos G. Spinthiropoulos ◽  
Eirini Stavropoulou ◽  
Anastasios Konstantinidis
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Capital Market ◽  
Direct Investment ◽  
Corporate Fraud ◽  
Foreign Investors ◽  
Negatively Associated ◽  
Listed Firms ◽  
Using Data ◽  
The Impact

The capital market reputation attracts foreign investment. Corporate fraud phenomenon is one of the most crucial aspects that threaten foreign investors. This study investigates the impact of corporate fraud on foreign direct investment FDI. Using data of Chinese listed firms, over the period 2009 to 2017, the results show that corporate fraud is negatively associated with foreign direct investment. This suggests that corporate fraud declines foreign shareholders ratio, and foreign investors avoid investing in a risky environment where their wealth may be expropriated. Further, we explore the impact of having foreign shareholders on corporate fraud. We find that increasing foreign shareholders may help in curbing corporate fraud due to diversified corporate experience and risk-taking behavior. However, the findings remain robust after controlling for the potential endogeneity problem. Our findings have important implications for policymakers and governments as it shows that corporate fraud is a crucial determinant to the cause of foreign direct investment.

RELATIONSHIP BETWEEN BOARD CHARACTERISTICS AND FIRM FINANCIAL DIVERSIFICATION (GEOGRAPHIC SALES) AMONG LISTED FIRMS ON NAIROBI SECURITIES EXCHANGE, KENYA: STATIC PANEL APPROACH

2018 ◽  
Vol 2 (7) ◽  
pp. 19
Author(s):  
Elijah Museve ◽  
Philip Mulama Nyangweso ◽  
Joel Tenai
Keyword(s):  
Capital Market ◽  
Free Cash Flow ◽  
Geographic Diversification ◽  
Resource Based View ◽  
Listed Firms ◽  
Board Characteristics ◽  
Operational Risks ◽  
The Government ◽  
Free Cash Flow Hypothesis ◽  
The Relationship

Purpose: The purpose of the study was to determine the relationship between board characteristics and firm financial diversification (geographic sales) among listed firms on Nairobi securities exchange, Kenya: static panel approach.Methodology: Fisher and Levin-Lin-Chu tests were used to test the presence of unit root in the series under study. Hadri residual-based Lagrange multiplier test was used to determine the feasible model.Results: Results revealed existence of positive and significant relationship between interlock directorship and geographic diversification as positive and significant directors’ remuneration had a negative and significant effect on firm’s geographic sales, while operational risk negatively varied with geographic sales Agency Theory, free cash flow hypothesis Resource Based view theory provided theoretical framework. Directors’ remuneration negatively impacted geographic sales but did not explain diversification in relation to national sales. This study affirmed the managerial heuristics as determinant of firm financial diversification providing support to the convectional financial dimensions of firm performance particularly ROE, ROI and EPS.Unique contribution to theory, practice and policy: The Government of Kenya and Capital Market regulator should enact and implement legislations that guides on interlock directorship, directors remuneration diversity and tolerable operational risks as determinants of diversification

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