scholarly journals Factors affecting Abnormal Returns around Bonus Issue Announcements: An Empirical Analysis of CNX 500 companies

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Haritika Chhatwal ◽  
Ashu Lamba
Keyword(s):  
Regression Model ◽  
Empirical Analysis ◽  
Significant Role ◽  
Firm Size ◽  
Manufacturing Sector ◽  
Abnormal Returns ◽  
Factors Affecting ◽  
Negative Relation ◽  
Crisis Period ◽  
Services Sector

The purpose of this paper is to find the determinants affecting the abnormal returns from bonus announcements for the period 2006 through 2014. The paper uses regression model for the study. The findings reveal that the firm size has a significant role in declining the abnormal returns. Promoters’ holding and abnormal returns are found to have significant and negative relation. The pre-cumulative average abnormal returns are responsible for significant improvement in abnormal returns. The abnormal returns in both the pre-crisis and post-crisis period were negative. The companies belonging to services sector generated significantly higher abnormal returns than the manufacturing sector.

The threshold effect of firm size on technological innovation: examination of panel data from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoxue Zhou ◽  
Yu Li ◽  
Yao Zhang
Keyword(s):  
Panel Data ◽  
Regression Model ◽  
Technological Innovation ◽  
Firm Size ◽  
Manufacturing Sector ◽  
Threshold Effect ◽  
Nonlinear Relationship ◽  
Threshold Regression ◽  
Content Type ◽  
Threshold Regression Model

PurposeThe purpose of this paper is to explore the threshold effect of firm size on technological innovation using panel data from 2007 to 2012 for listed enterprises in China's manufacturing sector.Design/methodology/approachConsidering the aim of research question is to examine the nonlinear relationship, this paper utilizes the threshold regression proposed by Hansen's (2000).FindingsBased on a threshold regression model using panel data from 2007 to 2012 for listed enterprises in China's manufacturing sector, we find a series of new results. This nonlinear relationship is under the restrictions and impacts of various factors, such as industry characteristics and government subsidies. The results suggest that the threshold regression model well explains the complicated nonlinear relationship and transition process, and it can also shed light on management practice and policy.Originality/valueThere are categorical arguments regarding why firm size is not as effective as before in explaining the monotonic principle of industrial innovation, especially for establishing an effective industrial policy in a particular situation. One of the important reasons is that we have begun to adopt a new perspective from the nonlinear view on the relationship between firm size and industrial innovation. In this study, we have examined the threshold effect of firm size on industrial technological innovation, which is the most representative nonlinear relationship.

scholarly journals Technology Intensity and Employment in the Indian Economy

2020 ◽  
pp. 097674791989532
Author(s):  
Shampa Paul ◽  
Kaushalesh Lal
Keyword(s):  
Financial Services ◽  
Manufacturing Sector ◽  
Information And Communications Technology ◽  
Capital Goods ◽  
Factors Affecting ◽  
Services Sector ◽  
Indian Economy ◽  
Financial Services Sector ◽  
Impact Of Technology ◽  
The Impact

The article investigates the impact of technology on employment in key sectors of the Indian economy. The analysis encompasses services and manufacturing sectors. The services sectors include firms engaged in financial and non-financial segments, while manufacturing sector consists of firms engaged in production of consumer goods. The findings suggest that indicators that have affected employment in manufacturing sector are size of operations, import of capital goods and better human resource (HR) practices, while in financial services sector, the factors affecting employment are better HR policies, profitability and expenditure on Information and Communications Technology (ICT). Whereas in non-financial sector firms, import of capital goods and expenditure on training and welfare of workforce significantly influenced employment. The distinguishing finding is that association between employment creation and age of firms is negative in financial services sector, while age of firm is immaterial in manufacturing and non-financial sectors. The study uses Prowess database for the period between 2011–2012 and 2015–2016. JEL: O14, O15, O33

scholarly journals An analysis of factors affecting the profits of new firms in Spain: Evidence from the food industry

2022 ◽  
Author(s):  
Yehui Tong ◽  
Ramon Saladrigues
Keyword(s):  
Firm Size ◽  
Logistic Model ◽  
Food Industry ◽  
Empirical Studies ◽  
First Year ◽  
New Firms ◽  
Factors Affecting ◽  
Crisis Period ◽  
Debt Burden ◽  
Accounts Payable

Using the logistic model, this article investigates the influence of financial factors on gaining profits for new firms in the Spanish food industry. Specifically, the firms founded separately during the crisis period and during the postcrisis period are observed for their first three years. The findings suggest that indebtedness (for both periods), previous profitability (for the postcrisis period) and accounts payable (for the crisis period) were most frequently statistically significant in the logistic model. Hence, for new firms, controlling debt burden, accumulating internally generated funds and using payables to establish business relationships can help to gain profits. Firm size and asset rotation were significant in the first year (especially during the postcrisis period), with a positive relationship to profits. Given that the food industry is highly competitive, enlarging firm size to reach efficiencies of scale and using a low-price strategy with high asset rotation to obtain market share are effective marketing strategies for new firms. This article contributes to the empirical studies about the financial effects on new firms' profits in the food industry; it can also help potential entrepreneurs make better decisions about starting new businesses and help to manage new firms better in different macroeconomic environments.

scholarly journals Corporate Governance and The Abnormal Returns To Acquisition Announcements

1970 ◽  
Vol 23 (2) ◽  
pp. 115-130
Author(s):  
Mark Swanstrom
Keyword(s):  
Corporate Governance ◽  
Regression Model ◽  
Firm Size ◽  
Abnormal Returns ◽  
Multiple Regression Model ◽  
Share Price ◽  
Explanatory Variables ◽  
Acquiring Firms ◽  
Acquisition Announcements ◽  
The Relationship

This paper investigates the relationship between a firm's corporate governancestructure and the abnormal returns associated with acquisition announcements.Based on a sample of 294 acquisitions occurring from 1994 through 1998, it isfound that acquiring firms have significant two-day abnormal returns of-2.71%.A multiple regression model that includes corporate governance variables has anAdjusted R-squared of 14.2% with board size, the sensitivity of the CEO's wealthto changes in share price, method ofpayment, and acquiring firm size all beingsignificant explanatory variables.

Which firms export? An empirical analysis for the manufacturing sector in the MENA region

2014 ◽  
Vol 41 (5) ◽  
pp. 672-695 ◽  
Author(s):  
Ali Fakih ◽  
Pascal L. Ghazalian
Keyword(s):  
Empirical Analysis ◽  
Firm Size ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Mena Region ◽  
Export Intensity ◽  
Content Type ◽  
Positive Effects ◽  
Factors Influencing ◽  
Export Behaviour

Purpose – The purpose of this paper is to analyse the export behaviour of manufacturing firms located in the Middle East and North Africa (MENA) region using data from the World Bank's Enterprise Surveys Database. Design/methodology/approach – This paper examines the factors influencing the export behaviour of manufacturing firms located in the MENA region through a probit model for export decision and through a fractional logit model for export intensity. Findings – The empirical results show significant positive effects of private foreign ownership, information and communication technology, and firm size on the probability of exporting and on export intensity of MENA manufacturing firms. Government ownership tends to exert negative effects on firms’ propensity to export. The results underscore enhancing effects of national economic development levels on firms’ export performance. Also, they indicate that firms’ propensity to export decreases with larger domestic market size. The empirical analysis reveals considerable heterogeneity in the implications of firm characteristics for firms’ export behaviour through firm size categories and across MENA countries. Originality/value – This paper contributes to the literature by conducting overall and comparative cross-country empirical analyses of the factors influencing the export behaviour of manufacturing firms located in the MENA region. It also explores the specificities of small and large firms’ responses to the factors influencing firms’ export behaviour. The results have implications for policies intended to enhance industrial growth and international competitiveness of the manufacturing sector in the MENA region.

The Determinants of Merger Withdrawals’ Abnormal Returns in The Australian Market

2015 ◽  
pp. 89-110 ◽  
Author(s):  
Thuy Nguyen Thu ◽  
Giang Dao Thi Thu ◽  
Hoang Truong Huy
Keyword(s):  
Financial Crisis ◽  
Event Study ◽  
Abnormal Returns ◽  
Market Response ◽  
Crisis Period ◽  
Valuation Effects ◽  
Event Study Method ◽  
Private And Public ◽  
Method Of Payment ◽  
The Impact

This paper examines the abnormal returns in merger withdrawals in Australia, especially distinguishing the market response between private and public targets. We also study the determinants of those abnormal returns, including the method of payment and the impact of financial crisis periods. Using the event study method, we document that in the Australian context, the announced withdrawal of mergers involving private targets creates significantly negative valuation effects in comparison with the valuation effects in withdrawal of mergers involving public targets. We also find that a financial crisis period strongly affects abnormal returns of merger withdrawals. However, the method of payment does not have any impact on the abnormal returns.

The number of employed as a macroeconomic indicator of working time dynamics

2020 ◽  
Vol 16 (5) ◽  
pp. 935-945
Author(s):  
I.A. Zaikova
Keyword(s):  
Comparative Analysis ◽  
Manufacturing Sector ◽  
Working Hours ◽  
Working Time ◽  
Labor Costs ◽  
Factors Affecting ◽  
Time Dynamics ◽  
Developed Economies ◽  
The Relationship ◽  
Macroeconomic Indicator

Subject. The working time of workers at any stage of economic development is a value reflecting the level of labor productivity. Any progress in productivity contributes to changes in the volume of labor costs and the number of employed. Depending on the relationship between the total volume of labor costs and the number of employed, the duration of working time per one worker may change (it may increase, decrease, or remain unchanged). Objectives. The study aims to confirm the importance of such a macroeconomic indicator as the number of employed in varying working hours. Methods. The study rests on the comparative analysis of countries with developed economies based on some indicators like dynamics of the working time fund, dynamics of the number of employed, average number of hours worked during the year per employee, etc. The analyzed timespan is 25 years (from 1991 to 2016). Results. The comparative analysis revealed that in the non-production sphere and the economy as a whole the macroeconomic determinants correlate so that the length of working time per worker reduces. When considering the analysis results for the manufacturing sector, no single trend was identified. Conclusions. One of the key factors affecting the change in working hours is the number of employed. The relationship between the working time fund and the number of employed directly determines the dynamics of working time per worker.

scholarly journals Price adjustments on the Johannesburg Stock Exchange for unexpected and dramatic news events: An empirical analysis

1989 ◽  
Vol 20 (3) ◽  
pp. 119-128 ◽  
Author(s):  
N. Bhana
Keyword(s):  
Empirical Analysis ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Short Term ◽  
Johannesburg Stock Exchange ◽  
Price Adjustments ◽  
Weak Evidence ◽  
News Events ◽  
One Year

The objective of this study is to determine whether companies listed on the Johannesburg Stock Exchange overreacted to unexpected favourable and unfavourable company-specific news events during the period 1970 - 1984. The JSE appears to be inefficient in reacting to the announcement of unfavourable news; economically significant abnormal returns up to one year following the event are observed. The JSE does not appear to overreact to news of a favourable nature, there is only weak evidence of short-term overreaction. The selling pressure caused by panic selling could depress prices well below levels justified by the unfavourable news. The magnitude of the overreaction to unfavourable news is sufficient to enable astute investors to outperform the market by taking positions in these securities. Knowledge of the pattern of market overreaction can also be of value to investors for transactions that are to take place anyway.

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