scholarly journals The Impact Of Intellectual Capital On Companies’ Performance: Evidence From Emerging Markets

2014 ◽  
Vol 8 (4) ◽  
pp. 46-66 ◽  
Author(s):  
D. S. Ilyin
Keyword(s):  
Stock Market ◽  
Emerging Markets ◽  
Intellectual Capital ◽  
Financial Economic ◽  
Positive Influence ◽  
Three Dimensions ◽  
Cost Of Equity ◽  
Stock Market Performance ◽  
The Cost ◽  
The Impact

The current study is devoted to the investigation of the impact of intellectual capital on the company’s performance with the evidence from the BRICS group. Due to its unobservable and intangible nature, intellectual capital (IC) has a number of proxies. In this paper IC is approximated by a new method, proposed by Sydler et al. (2014) as well as by more traditional VAIC approach. According to Zeghal and Maaloul’s (2010) approach, company’s performance is segmented into three dimensions: financial, economic and stock market performance. Applying econometric analysis it is found that IC has a positive and significant impact on the performance of a firm. Furthermore, IC has a positive influence on operational margin and it reduced the cost of equity for IC intensive companies. Comparing the two proxies, it was revealed that Sydler’s proxy is more relevant for stock market analysis since it directly estimates the volume of IC of a firm, while VAIC is a relative scale less measure of efficiency of the IC employment and is more closely related to the company’s efficiency rates, such as operational margin. The obtained results suggest that IC intensive firms on emerging markets invest mostly in improving its operational efficiency and reducing operational and competition risk.

Does intellectual capital disclosure affect the cost of equity capital? An empirical analysis in the integrated reporting context

2020 ◽  
Vol 21 (6) ◽  
pp. 985-1007 ◽  
Author(s):  
Antonio Salvi ◽  
Filippo Vitolla ◽  
Nicola Raimo ◽  
Michele Rubino ◽  
Felice Petruzzella
Keyword(s):  
Intellectual Capital ◽  
Equity Capital ◽  
Corporate Disclosure ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Integrated Reporting ◽  
Empirical Examination ◽  
Content Type ◽  
The Cost ◽  
The Impact

PurposeThe purpose of this study is to examine the impact of intellectual capital disclosure on the cost of equity capital in the context of integrated reporting, which represents the ultimate frontier in the field of corporate disclosure.Design/methodology/approachThe authors employ content analysis to measure intellectual capital disclosure levels along with a panel analysis on a sample of 164 integrated reports.FindingsEmpirical outcomes indicate that intellectual capital disclosure levels have a significantly negative association with the cost of equity capital.Originality/valueThis study's major contribution lies in its originality in terms of empirical examination of the relationship between intellectual capital disclosure in integrated reports and the cost of equity capital.

scholarly journals FDI Inspired Energy Consumption in Selected Emerging Markets: Does Financial Development Matter?

2018 ◽  
Vol 21 (3) ◽  
pp. 5-23
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Energy Consumption ◽  
Stock Market ◽  
Emerging Markets ◽  
Financial Development ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Negative Influence ◽  
Positive Influence ◽  
Private Debt ◽  
The Impact

The study investigated the impact of the complementarity between foreign direct investment (FDI) and financial development on energy consumption in emerging markets. Although the relevance of the FDI‑led energy consumption hypothesis is no longer contestable, the combined influence of FDI and financial development on energy consumption is not yet resolved. Random and fixed effects show that the interaction between outstanding domestic private debt securities and FDI had a significant positive influence on energy consumption whereas pooled ordinary least squares (OLS) noted that the interaction between FDI and outstanding domestic public debt securities positively and significantly affected energy consumption. The dynamic generalized methods of moments (GMM) shows that the interaction between (1) FDI and stock market capitalization and (2) FDI and stock market value traded had a significant negative influence on energy consumption. The study urges emerging markets to deepen the bond sector market in order to enhance FDI‑led energy consumption.

scholarly journals SOCIAL MEDIA AND THE STOCK MARKETS: AN EMERGING MARKET PERSPECTIVE

2021 ◽  
Vol 22 (6) ◽  
pp. 1614-1632
Author(s):  
Shweta Agarwal ◽  
Shailendra Kumar ◽  
Utkarsh Goel
Keyword(s):  
Social Media ◽  
Stock Market ◽  
Emerging Markets ◽  
Stock Markets ◽  
Emerging Market ◽  
Impulse Response Function ◽  
Developed Countries ◽  
Stock Market Development ◽  
Stock Market Performance ◽  
The Impact

There are numerous studies that examine the impact of social media on the stock market performance but there is a paucity of such evidences from the emerging economies. Today many multinational banks and other financial conglomerates from the developed countries are expanding their operations to the emerging markets, known for their rapid growth. The businesses in developed countries prefer using social media to reach out to their stakeholders. This might be a challenge as emerging markets are very different from the developed markets in terms of infrastructure and stock market development. This study performs the sentiment analysis of the tweets about the Indian companies that are a part of Nifty50 or any sectorial index, for a period of 15 months. The results from the Granger-causalty tests indicate that the Twitter sentiments have a significant relationship with the indices related to the banking and financial sectors of the Indian stock markets. Results from the Impulse Response Function reveal that, on the index returns, the impact of the negative sentiments stays for a longer period of time than the positive sentiments. This study would help businesses use social media effectively for information sharing and dissemination in the new environment.

scholarly journals The impact of the COVID-19 lockdown on stock market performance: evidence from Vietnam

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dao Le Trang Anh ◽  
Christopher Gan
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Negative Impact ◽  
Emerging Market ◽  
Positive Influence ◽  
Stock Performance ◽  
Content Type ◽  
Stock Market Performance ◽  
Daily Stock Returns ◽  
The Impact

PurposeThis study explores the effects of the COVID-19 outbreak and its following lockdown on daily stock returns in Vietnam, a fast-growing emerging market that successfully revived after the pandemic lockdown.Design/methodology/approachThis study uses panel-data regression models to evaluate the influence of the daily increase in the number of COVID-19 confirmed cases during pre-lockdown and lockdown on daily stock returns of 723 listed firms in Vietnam from 30 January to 30 May 2020.FindingsThe study confirms the adverse impact of the daily increasing number of COVID-19 cases on stock returns in Vietnam. The study also discloses that the Vietnam stock market before and during the nationwide lockdown performed in opposing ways. Though COVID-19 pre-lockdown had a significant, negative impact on Vietnam's stock returns, the lockdown period had a significant, positive influence on stock performance of the entire market and the different business sectors in Vietnam. The financial sector was hardest hit on the Vietnam stock market during the COVID-19 outbreak.Research limitations/implicationsThe study indicates investors' confidence and trust in the Vietnam government's decisions to combat COVID-19 and favorable stocks prices were the main reasons that the Vietnam stock market rebounded during and after lockdown.Originality/valueThis is the first study to examine the impact of COVID-19 during the pre-lockdown and lockdown periods on stock performance in Vietnam, a rapidly developing economy that was successful in controlling the pandemic with a rejuvenated stock market after lockdown.

scholarly journals Ownership structure and stock market performance of acquiring firms: The case of French mergers

2018 ◽  
Vol 15 ◽  
pp. 188-200
Author(s):  
Ferihane Zaraa Boubaker
Keyword(s):  
Stock Market ◽  
Ownership Structure ◽  
Negative Impact ◽  
Market Performance ◽  
Positive Influence ◽  
Curvilinear Relationship ◽  
Managerial Ownership ◽  
Acquiring Firms ◽  
Stock Market Performance ◽  
The Impact

This study examines the short- and long-term relationship between the shareholder structure (family, institutional, managerial ownership) and stock market performance of acquiring firms. To explore this issue, we use a sample of 84 acquisitions undertaken by French firms operating in the real estate and financial sectors over the period 2008-2012. To compute short-term stock performance we used the standard event study methodology while we estimated the CAR and BHAR to study long horizon up to 36 months. The results show a curvilinear relationship between the manager’s ownership and stock market performance. We provide evidence that increasing managerial ownership up to 16% has a negative impact on a firm performance after which it becomes positive. Moreover, the separation between ownership and control does not seem to affect the performance of initiators firms due to a lack of significance of the coefficients suggesting the absence of expropriation of minority shareholders. Finally, examining the links between the shareholding nature and performance shows that family and institutional shareholders have a positive influence on performance. Our research tried to fill the gap in the existing literature by studying concurrently the impact of ownership structure variables on the short as on the long post-merger performance.

scholarly journals Impact of Corporate Disclosure on Cost of Equity Capital in Vietnam

2017 ◽  
Vol 8 (4) ◽  
pp. 64
Author(s):  
Dung Viet Nguyen ◽  
Lan Thi Ngoc Nguyen
Keyword(s):  
Stock Market ◽  
Equity Capital ◽  
Residual Income ◽  
Corporate Disclosure ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Valuation Model ◽  
Residual Income Valuation ◽  
The Cost ◽  
The Impact

The objective of the paper is to test the impact of corporate disclosure on the cost of equity capital for firms listed on Vietnam’s stock market. We use the Botosan (1997) scoring methodology and the residual income valuation model to measure disclosure level and the implied cost of equity capital. Our findings suggest that, taking into account other determinants, disclosure has a significant reducing impact on the cost of equity capital.

scholarly journals The Impact of Intellectual Capital Disclosure and Information Asymmetry on the Cost of Equity Capital

2017 ◽  
Vol 6 (5) ◽  
pp. 1-12
Author(s):  
Bombang Hadi Prabowo
Keyword(s):  
Information Asymmetry ◽  
Intellectual Capital ◽  
Stock Prices ◽  
Stock Price ◽  
Research Result ◽  
Positive Influence ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
The Impact

This research aims to analyze the impact of Intellectual Capital Disclosure and Information Asymmetry on Cost of Equity Capital and stock prices. It used purporsive sampling and studied LQ 45 companies enlisted in 2014-2015 Indonesia Stock Exchange. The research data gathered through non-partisan observation method and then analyzed with PLS analysis equation. The result shown: (1) Information Asymmetry has positive significance towards stock price; (2) Intellectual Capital has insignificant positive influence towards stock price; (3) Intellectual Capital has insignificant positive influence towards Cost of Equity Capita; (4) Information Asymmetry has insignificant positive towards Cost of Equity Capital; (5) Cost of Equity Capital has insignificant negative influence towards stock price. This research result validate previous researches’ findings especially in agency theory and asymmetry theory.

scholarly journals Information Asymmetry, Ownership Structure and Cost of Equity Capital: The Formation for Open Innovation

2021 ◽  
Vol 7 (1) ◽  
pp. 48
Author(s):  
Ade Imam Muslim ◽  
Doddy Setiawan
Keyword(s):  
Stock Market ◽  
Information Asymmetry ◽  
Ownership Structure ◽  
Trading Volume ◽  
Foreign Ownership ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Ownership Structures ◽  
The Cost

Our study aims to investigate how information asymmetry and ownership structure affect cost of equity capital. For that purpose, we collected 246 issuers over 4 years for a total of 984 observations. By using panel data processing, we found that the information asymmetry we proxied through Price non-Synchronization and trading volume had an effect on the cost of equity capital. Our results also confirmed both Agency Theory and Pecking Order Theory. Both theories are in line with the conditions of the stock market in Indonesia. In addition, we found that institutional and foreign ownership structures also had an effect on the cost of equity capital. Furthermore, our results also confirmed Interest Alignment Theory and Entrenchment Theory. Our research is expected to contribute to the debate on the existence of information asymmetry and ownership structures in relation to the cost of equity capital. We also hope that it will be a valuable input for investors in considering their investment. Moreover, from the results of this study, investors can also consider foreign ownership or institutional ownership in determining their investment. In addition, stock market regulators in Indonesia can develop approaches to minimize information asymmetry and encourage foreign investors to invest in Indonesia.

scholarly journals Pandemic and Indonesia Stock Market Performance

2021 ◽  
Vol 2 (4) ◽  
pp. 254-262
Author(s):  
Intan Surya Lesmana ◽  
Siti Saadah
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Market Performance ◽  
Government Policies ◽  
Likelihood Method ◽  
Symmetric Model ◽  
Asymmetric Model ◽  
Government Response ◽  
Stock Market Performance ◽  
The Impact

This study aims to analyze the impact of the COVID-19 pandemic on Indonesia’s stock market performance. Considering the characteristics of daily stock return data that shows the characteristics of volatility clustering, the analytical method used is to develop a heteroscedastic model specification whose parameters are estimated using the maximum likelihood method. Based on data from March 2020 to January 2021, this study finds that the Exponential-GARCH asymmetric model is the best model compared to the Standard-GARCH symmetric model or the asymmetric Threshold-GARCH model. The inference analysis conducted on the Exponential-GARCH asymmetric model in this study shows that the stock market's performance that is significantly affected by this pandemic is the volatility of its returns. Stock price volatility is one of the important variables in stock market performance. This study produces empirical findings that government policies on social restrictions contribute significantly to suppressing stock market volatility. As for government policies in mitigating the risk of the spread of the epidemic, in this study, it is measured through a stringency index. This index was released by the Oxford COVID-19 Government Response Tracker (OxCGRT) which monitors the government's response to the coronavirus in 160 countries and is a parameter that evaluates the policies taken by a country's government based on nine metrics. This index does not measure the effectiveness of a country's government response, but only the level of tightness. However, the results of the tests carried out in this study did not find a significant impact of pandemic indicators, the number of cases, and the number of daily deaths related to COVID-19 on stock returns.

scholarly journals Capital Market Response to COVID-19 Pandemic – A Systematic Review on Stock Volatility and Performance

2021 ◽  
pp. 27-49
Author(s):  
Janga Bahadur Hamal ◽  
Rishi Raj Gautam
Keyword(s):  
Stock Market ◽  
Investor Sentiment ◽  
Market Volatility ◽  
Stock Market Volatility ◽  
Stock Volatility ◽  
Government Response ◽  
Stock Market Performance ◽  
Policy Measures ◽  
And Performance ◽  
The Impact

This paper aims to identify the impact of the COVID-19 pandemic on stock market volatility and market return as well as the impact of government response to the COVID-19 pandemic on stock market performance. To analyze the same, the paper has adopted Systematic Literature Review (SLR) approach and conducted a review of 40 journal articles published between between2020 to mid-2021. The paper identified that the short-term impact of the COVID-19 outbreak and government policy measures had a significant and adverse impact on stock market volatility, return and overall performance. In the longer term, the stock markets slowly started to stabilize and revive. This effect on the stock market was also attributed to investor sentiment and thus, in the later stages, targeted government response had a positive effect on boosting investor confidence towards the market.

Sign in / Sign up

Export Citation Format

Share Document