scholarly journals The Impact of Disclosure Sentiment on the Share Prices of Russian Companies

2021 ◽  
Vol 15 (2) ◽  
pp. 5-15
Author(s):  
Maksim Kopyrin ◽  
Iuliia Naidenova
Keyword(s):  
Stock Prices ◽  
Information Disclosure ◽  
Stock Price ◽  
Positive Impact ◽  
News Item ◽  
Marginal Effect ◽  
Share Prices ◽  
Stock Price Reaction ◽  
Tone Level ◽  
The Impact

Information about companies published in a news feed is invariably tinted by emotional tonality. As such, resultingperceptions may influence the opinion of market players, and consequently affect the dynamics of a company’s shareprice. This study aims to evaluate various hypotheses about the impact of the tone of news items regarding dividends,capital expenditures, and development on the stock prices of Russian companies. Information disclosure is extensivelystudied, and there have been limited studies on the effect of disclosures on Russian companies. However, until now, therehave been no research studies which verify hypotheses on the influence of news sentiment on corporate share prices inthe Russian market. This analysis was conducted using data from 49 Russian public companies included in the Moscow exchange indexover the period from the end of 2017 to the beginning of 2019. To account for the proximate impact of news items onconsequential market phenomena, an event study methodology was applied in order to estimate and construct themodels of dependency of cumulative abnormal return (CAR) on news tone level, and control for financial and nonfinancialfactors. Our results provide evidence for the positive impact of the tone of news texts on the share prices of Russian companies.The increase in news tone by one standard deviation leads to a cumulative abnormal stock return increase of 0.26percentage points. This result is consistent with previous research conducted on data from developed stock markets.Moreover, the relationship between the tone or sentiment level of a news item and the stock price reaction is linear,without the diminishing marginal effect. Our conclusions should prompt companies to invest effort in delivering information in a tonally positive way,highlighting the most positive news. Investors, in turn, should rationally approach the interpretation of publishedinformation.

scholarly journals The effects of dividend policy to stock prices of listed companies in Vietnam stock market

2020 ◽  
Author(s):  
Thị Lam Hồ ◽  
Thùy Phương Trâm Hồ
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Dividend Policy ◽  
Corporate Value ◽  
Business Managers ◽  
Dividend Payment ◽  
Share Prices ◽  
Finance Management ◽  
The Impact

Dividend policy is one of the most important policies in corporate finance management. Understanding the impact of dividend policy on the distribution of profits, corporate value and thus on the stock price is important for business managers to make policies and for investors to make investment decisions. This study is conducted to evaluate the impact of dividend policy on share prices for companies listed on Vietnam’s stock market in the period from 2010 to 2018, based on the availability of continuous dividend payment data. Using the FGLS method with panel data of 100 companies listed on the HoSE and HNX, we find evidence of the impact of dividend policy on stock prices, supporting supports the bird in the hand and the signal detection theories. The findings of this study help to suggest a few recommendations for business managers and investors.

scholarly journals Stock price reaction to cash dividend announcements in Vietnam

2017 ◽  
Vol 24 (02) ◽  
pp. 74-89
Author(s):  
Truong Nguyen Xuan ◽  
Huong Dao Mai ◽  
Anh Nguyen Thi Van
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Cash Dividend ◽  
Share Prices ◽  
Price Reaction ◽  
Cumulative Abnormal Returns ◽  
Stock Price Reaction ◽  
The Uk

This study attempts to investigate the stock price reaction to divi-dend announcements using data of Vietnamese listed firms on Hochiminh Stock Exchange (HOSE). Standard event study meth-odology has been employed on a sample of 198 cash dividend an-nouncements made in 2011. The results show that stock prices react significantly and positively to the announcements of cash dividends, including both dividend increasing and dividend decreasing events. It is also plausible that cumulative abnormal returns exhibit an in-creasing trend before announcement yet a decreasing trend after announcement dates. More specifically, we find positively signifi-cant cumulative abnormal returns of around 1.03% on announce-ment dates; other larger windows also demonstrate positive abnor-mal returns of around 1.3%. In addition, cash dividends have differ-ent effects on share prices of firms from different industries. These results support the signaling hypothesis and are also consistent with prior findings of empirical research done on more developed mar-kets, i.e. the US and the UK.

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 Culture and Stock Price Reaction to Private Information

2018 ◽  
Vol 11 (1) ◽  
pp. 117-130
Author(s):  
Anita Todea
Keyword(s):  
Private Information ◽  
Stock Prices ◽  
Stock Price ◽  
Financial Openness ◽  
Price Informativeness ◽  
Stock Price Reaction ◽  
Stock Price Informativeness ◽  
Developed Stock Markets ◽  
The Impact ◽  
Low Uncertainty

AbstractThis paper examines the impact of culture on stock price informativeness in a sample of firms from 23 developed stock markets. We find that the information content of private information in stock prices is higher in more individualistic countries and in low uncertainty-avoiding countries. Moreover, financial openness stimulates the incorporation of private information into individualistic countries and in low uncertainty-avoiding countries.

scholarly journals On the Impact of Dividend Payments on Stock Prices - an Empirical Analysis of the German Stock Market

2021 ◽  
Vol 16 (1) ◽  
pp. 255-269
Author(s):  
Konstantin Melching ◽  
Tristan Nguyen
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Signaling Theory ◽  
Share Price ◽  
Dividend Payment ◽  
Share Prices ◽  
Dividend Payments ◽  
Time Period ◽  
German Stock ◽  
The Impact

Abstract This paper examines the relation between dividend payments and stock prices of all firms in the German prime standard DAX 30 in the time period from 2012 to 2019. The irrelevance theory introduced by Miller and Modigliani states that dividend payments must not have an impact on stock prices in a perfect market. In contrast, the signaling theory and the dividend puzzle indicate that dividend payments are likely to have a profound impact on the stock price. According to our findings the ex-dividend decrease of stock prices was significantly smaller than the dividend payment. Nevertheless, the results support the impact of the dividend payment on the share price. Firstly, the existence of the ex-dividend markdown is a proof that dividend payments cause share price losses. Secondly, the study explains in particular that high dividend payments result in high share prices over the examined period. Thirdly, our analysis demonstrates a positive correlation between the dividend and the stock price development according to the signaling theory. Considering the above- mentioned results, we can conclude that the share price of a company is highly affected by the decision making of the company regarding the dividend policy.

Effect of advertising expenditures on analyst coverage: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Omar Farooq ◽  
Harit Satt ◽  
Fatimazahra Bendriouch
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Positive Impact ◽  
Emerging Market ◽  
Ordinary Least Squares ◽  
Information Asymmetries ◽  
Analyst Coverage ◽  
Content Type ◽  
The Impact ◽  
Advertising Activity

PurposeThis paper aims to document the relationship between advertising expenditures and analyst coverage in a sample of Indian firms during the period between 2000 and 2019.Design/methodology/approachIn order to test the effect of advertising expenditures on the extent of analyst coverage, the authors estimate various versions of pooled ordinary least squares (OLS) regression. The dependent variable (ANALYST) measures the total number of analysts covering a firm in a given year. The main independent variable of interest in this paper represents the advertising activity. The authors define the extent of advertising activity (ADVERT) as the ratio of total advertising expenditures and total assets.FindingsThe study’s results show that advertising expenditures have a significantly positive impact on the extent of analyst coverage and are robust across various proxies of the key variables and various estimation procedures.Practical implicationsThere are a number of key takeaways from our study. First, firms that expend more resources on advertising are more likely to be followed by analysts which is associated with better performance, lower information asymmetries associated and high advertising expenditures. Second, stock prices with more information embedded in them may signify that these firms receive more attention from investors and have lower information asymmetries. And finally the impact of advertising on the decision of an analyst to cover a firm becomes more pronounced for firms with high stock price synchronicity. All these three main conclusions are giving investors a clear insight on analyst coverage, advertising expenditure and the link between the two.Originality/valueThe results are consistent with the argument that advertising expenditures induces analysts to cover firms because firms with high advertising activities are more likely to have better performance, lower information asymmetries and increased attention from investors. All of these factors are supposed to facilitate the analyst coverage.

scholarly journals Impact of splits on stock splits ratios around announcement day: empirical evidence from India

2020 ◽  
Vol 17 (3) ◽  
pp. 345-359
Author(s):  
Anjali Gupta ◽  
Purushottam Kumar Arya
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Positive Impact ◽  
Abnormal Returns ◽  
Stock Splits ◽  
P Value ◽  
Share Prices ◽  
Stock Split ◽  
Percentage Basis ◽  
The Impact

Stock split should not have any impact on share prices, and there should be no value creation. The purpose of this study is to find any impact of stock splits announced in India between 1999 and 2019 on stock returns. The study aims to find differences in the impact of stock splits on stock returns with differences in stock split ratios. To examine the impact, the study includes 224 splits and adopts the standard event study methodology to find results. The presence of an abnormal return around split announcement day is the main factor, which determines the impact of stock split on the stocks. Average Abnormal Returns and Cumulative Average Abnormal Returns on percentage basis, z-test and p-value are used to statistically analyze the impact on stock prices around the announcement day of splits. These tests are used across different window periods (e.g., 20 days, 10 days and 5 days) around the event day (announcement day) to check if the impact of the event continues or decreases over time. The results point to a significant positive impact of stock splits on the returns of stock around the day the split was announced. The results also show that the impact is stronger for stock splits with ratios 10:1 (2.72 percent) and 10:2 (2.14 percent). It can be suggested that 10:1 and 10:2 are the most popular split ratios that receive maximum ongoing response to splits in the announcement window.

scholarly journals The Impact of Economic Agents Perceptions on Stock Price Volatility

2015 ◽  
Vol 63 (4) ◽  
pp. 1229-1234
Author(s):  
Jaroslav Bukovina
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Negative Impact ◽  
Positive Impact ◽  
Price Volatility ◽  
Investment Strategy ◽  
Economic Agents ◽  
Market Indexes ◽  
The Impact

This paper studies perceptions of economic subjects and its impact on stock prices. Perceptions are represented by stock market indexes and Facebook activity. The contribution of this paper is twofold. In the first place, this paper analyzes the unique data of Facebook activity and proposes the methodology for employment of social networks as a proxy variable which represents the perceptions of information in society related to the specific company. The second contribution is the proposal of potential link between social network principles and theories of behavioral economics. Overall, the author finds the negative impact of Facebook activity on stock prices and the positive impact of stock market indices. The author points the implications of findings to protection of company reputation and to investment strategy based on the existence of undervalued stocks.

scholarly journals Value Correlation of Deferred Income Tax In Industrialization

CONVERTER ◽  
2021 ◽  
pp. 129-143
Author(s):  
Tao Zhang, Wanzhen Yu
Keyword(s):  
Stock Prices ◽  
Income Tax ◽  
Stock Price ◽  
Negative Impact ◽  
Positive Impact ◽  
Good News ◽  
Earnings Per Share ◽  
Long Run ◽  
Adjustment Variable ◽  
The Impact

This paper collects 2670 deferred income tax samples from 211 listed industrial companies that have been surviving and continuously disclosing deferred income tax accounting information from 2007 to 2019. On the basis of ohlson model, earnings per share and net flow of operating activities per share are added as adjustment variables to analyze the impact of deferred income tax on stock prices. The results show that:(1) In the long run, DTAs are positively correlated with enterprise stock prices, while DTLs are negatively correlated with enterprise stock prices; (2) After adding the adjustment variable earnings per share, it is found that when EPS level is high, DTAs have a slightly downward negative impact on stock prices, while DTLs have little negative impact on stock prices. When EPS level is low, DTAs have a positive impact on stock prices, while lower earnings per share will accelerate the negative impact of DTLs on stock prices. (3) After adding the adjustment variable CFO, it is found that only when the CFO is sufficient, DTAs are really good news. It has a positive impact on stock price. If the CFO is poor, the positive impact of recognized DTAs on stock price is almost zero. In addition, when the CFO is high, the negative impact of DTLs on price will be accelerated.

scholarly journals Prediksi Harga Saham Perusahaan Operator Telekomunikasi Selular pada Masa Pandemi Menggunakan Metode Binomial

2021 ◽  
Vol 1 (1) ◽  
pp. 1-6
Author(s):  
Ferliana ◽  
Yani Ramdani ◽  
Yurika Permanasari
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Price ◽  
Mobile Telecommunications ◽  
Binomial Tree ◽  
Share Prices ◽  
Corona Virus ◽  
Short Time ◽  
Difficult Times ◽  
The Impact

Abstract. The corona virus causes all activities to be carried out online so that all activities require Internet access which makes mobile telecommunications operator companies one of the promising investments in this pandemic. Stock investing allows investors to get profits in a relatively short time. Investments in stocks are currently unstable, as the whole world has been in difficult times since the coronavirus. Capital market players can feel the loss, which causes share prices to tend to decline. The impact of the corona virus is to paralyze all areas, especially the economy, so that an investor must be able to predict an increase or decrease in stock prices. The binomial method helps investors to predict the possibility of a stock price that will occur and is clarified by using a binomial tree that can be predicted in the form of stock prices by having the possibility of four predictions, two predictions describing an increase in shares and two other predictions describing the possibility of a falling stock price. Abstrak. Virus korona menyebabkan semua kegiatan dilakukan melalui daring (online) sehingga semua kegiatan memerlukan akses Internet yang membuat perusahaan operator telekomunikasi seluler menjadi salah satu investasi yang menjanjikan dimasa pandemi ini Investasi ialah komitmen menempatkan sejumlah dana dalam waktu yang cukup lama untuk memperoleh keuntungan di masa datang. Investasi saham memungkinkan investor mendapatkan keuntungan  dalam waktu yang relatif singkat. Investasi dalam bentuk saham pada saat ini tidaklah stabil, karena seluruh dunia dalam masa sulit semenjak adanya virus korona. Kerugianpun dapat dirasakan oleh pelaku pasar modal yang menyebabkan harga saham cenderung menurun. Dampak virus korona adalah melumpuhkan segala bidang terutama perekonomian sehingga sebagai seorang investor harus bisa memprediksi peningkatan atau penurunan harga saham. Metode binomial membantu investor untuk memprediksi kemungkinan harga saham yang akan terjadi dan diperjelas dengan menggunakan pohon binomial hasil prediksi yang di dapat berupa harga saham dengan memiliki kemungkinan empat prediksi dua prediksi menggambarkan kenaikan saham dan dua prediksi lain menggambarkan kemungkinan harga saham turun.

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