The Effect of Blockholder Contestability and Probability of Forming Coalition on Firm Performance: Focus on the Stock Liquidity and the Role of Second Blockholder in Korean Stock Market

This paper seeks to enhance our understanding of financial analysts in assisting market investors’ use of accounting earnings in the Korean stock market. We examine whether stock returns differentially reflect earnings information for firms with analyst coverage. We propose that the role of analysts as external monitors as well as information intermediaries enhances the market investors’ valuation of earnings. We find that market valuation of earnings is higher for firms with analyst following. Furthermore, market investors’ valuation of earnings increases (or decreases) with the number of analysts (or with the dispersion of analysts’ forecasts). This suggests that the beneficial effect of analysts arises through the quantity and quality of analysts’ information. This study contributes to the literature by investigating the important role of analysts in emerging market.

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LIQUIDITY AND FIRM VALUE IN AN EMERGING MARKET

The Singapore Economic Review ◽

10.1142/s0217590817470063 ◽

2019 ◽

Vol 64 (02) ◽

pp. 365-376 ◽

Cited By ~ 9

Author(s):

JONATHAN BATTEN ◽

XUAN VINH VO

Keyword(s):

Firm Performance ◽

Stock Market ◽

Firm Value ◽

Stock Exchange ◽

Emerging Market ◽

Developed Countries ◽

Market Liquidity ◽

Ho Chi Minh City ◽

Stock Liquidity ◽

Negative Relation

This paper investigates the link between stock market liquidity and firm value in an important emerging market, Vietnam. Specially, we examine this relationship using a sample of firms listed on the Ho Chi Minh City stock exchange for the period 2006–2014. We show that there is a negative relation between liquidity and firm value. This outcome is contrary to previous results for many developed countries. Further, we demonstrate that this result may be explained by differences in leverage effects and pricing-based theories, where stock liquidity influences firm performance via an illiquidity premium or mispricing.

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The Role of Stock Market Development in Influencing the Firms Performance: A Study Based on Pakistan Stock Market

International Journal of Economics and Finance ◽

10.5539/ijef.v10n12p104 ◽

2018 ◽

Vol 10 (12) ◽

pp. 104

Author(s):

Sophee Sulong ◽

Qasim Saleem ◽

Zeeshan Ahmed

Keyword(s):

Firm Performance ◽

Stock Market ◽

Developing Economies ◽

Market Liquidity ◽

Market Volatility ◽

Market Development ◽

Stock Market Volatility ◽

Stock Market Development ◽

Stock Market Liquidity

The study aims to examine the role of stock market development in influencing the performance of non financial firms listed on Pakistan Stock Exchange from 2001 to 2017. Stock market development is a foremost issue of debate nowadays in emerging and developing economies. The theories and empirical studies strongly refer that stock market development is a tool to mobilize the savings and investment to promote the industrialization and firms performance. This study is an effort to establish the empirical relationship between stock market development and firm’s performance. Three indicators of stock market development like stock market volatility,stock market liquidity and stock market liquidity are used for assessing the book and market performance of firms. For this purpose two-step system Generalized Method of Moments (GMM) estimator was employed in a dynamic panel model for empirical testing of hypothesis. The findings indicates that stock market volatility is a significant factor which which attempts to decrease the firm performance. On the other hand, stock market capitalization and stock market liquidity significantly causes the increase in firm firm performance.

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Web Traffic And Firm Performance: Evidence From The MENA Region

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v29i5.8015 ◽

2013 ◽

Vol 29 (5) ◽

pp. 1317

Author(s):

Omar Farooq ◽

Samir Aguenaou

Keyword(s):

Firm Performance ◽

Stock Market ◽

Positive Relationship ◽

Agency Problems ◽

Information Environment ◽

Web Traffic ◽

Mena Region ◽

Market Participants ◽

Concentrated Ownership

Does the traffic generated by websites of firms signal anything to stock market participants? Does higher web-traffic translate into availability of more information and therefore lower agency problems? And if answers to above questions are in affirmative, does higher web-traffic traffic translate into better firm performance? This paper aims to answer these questions by documenting a positive relationship between the extent of web-traffic and firm performance in the MENA region during the 2010. We argue that higher web-traffic lowers the agency problems in firms by disseminating more information to stock market participants. Consequently, lower agency problems translate into better performance. Furthermore, we also show that agency reducing role of web-traffic is more pronounced in regimes where information environment is already bad. For example, our results show stronger impact of web-traffic on firm performance in civil law countries, firms with concentrated ownership, and firms with more intangible assets. All of these groups are characterized by higher agency problems. Our results, therefore, indicate that web-traffic can play a substitute for traditional governance mechanisms in the MENA region.

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Does board gender diversity affect firm performance The mediating role of innovation on the French stock market

International Journal of Entrepreneurship and Small Business ◽

10.1504/ijesb.2020.10025935 ◽

2020 ◽

Vol 39 (1/2) ◽

pp. 263

Author(s):

L'Hocine Houanti ◽

Camille Saintives ◽

Rey Dang ◽

Riadh Manita ◽

Najoua Elommal

Keyword(s):

Firm Performance ◽

Stock Market ◽

Gender Diversity ◽

Mediating Role ◽

Board Gender Diversity

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Sidecar Performance: Evidence from the Korean Stock Market

Journal of Derivatives and Quantitative Studies ◽

10.1108/jdqs-01-2007-b0001 ◽

2007 ◽

Vol 15 (1) ◽

pp. 1-40

Author(s):

Jong Won Park ◽

Yun Sung Eom ◽

Uk Chang

Keyword(s):

Stock Market ◽

Market Liquidity ◽

Market Volatility ◽

Securities Markets ◽

Order Imbalance ◽

Korean Stock Market ◽

Return Dynamics ◽

Price Discovery Process ◽

Post Period

In the paper, the effects of sidecar on the Korean stock market are considered. Throughout the study, we could reach the following conclusions. Firstly, the analysis of return dynamics illustrates that there are no price reversals for all sample groups but price continuations after the event. Secondly, the analysis of volatility and liquidity shows that there are some differences in the effects of sidecar on market volatility and liquidity according to the sample periods‘ however, in the post period of widening of the sidecar trigger levels, the mechanism couldn’t play any role of stabilizing the market volatility and resolving the increased order imbalance around the event. From these results, we could infer that sidecar delays the normal price discovery process and undermine the market liquidity. Also, we suggest that the increased market efficiency of Korea stock market after the financial crisis in 1997, especially deregulation in securities markets, can be a good additional factor for explaining the diffrences in the role of sidecar between sample periods.

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