scholarly journals ARE ISLAMIC STOCKS LESS EXPOSED TO SENTIMENT-BASED MISPRICING THAN NON-ISLAMIC ONES? EVIDENCE FROM THE INDONESIAN STOCK EXCHANGE

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Rizqi Umar Al Hashfi ◽  
Ahmad Maulin Naufa ◽  
U’um Munawaroh
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Principal Component ◽  
Equation Model ◽  
Cross Sectional ◽  
Stock Mispricing ◽  
Time Invariant ◽  
Islamic Values

The aim of this research is to verify the role of Islamic value in stock mispricing in the Indonesian capital market. Empirically, high investor sentiment can lead to mispricing on equity appraisal. When investors feel excessively optimistic about their valuation, equity will be overpriced, or vice versa. The presence of Islamic values, such as the prohibition of interest, speculative and uncertain transactions, and excessive leverage, arguably reduce sentiment-based mispricing. Daily and cross-sectional market data were employed. In addition, principal component analysis was conducted to construct a firm-specific investor sentiment variable. With regard to the method, the Hausman-Taylor (H-T) approach was used to deal with heterogeneity, endogeneity, and the time-invariant variable in Fama-MacBeth regression. The results show that our baseline analysis confirms the mispricing of overall stocks. However, Islamic stocks are less exposed to sentiment-based mispricing than their non-Islamic counterparts. The results are consistent with our robustness test, in which we estimate the equation model across industry and portfolio. Finally, our findings imply various insights for both investors and policymakers.

Effect of Audit Expectation Gap in Nigerian Capital Market

2014 ◽  
Vol 1 (1) ◽  
pp. 294 ◽  
Author(s):  
Paul N. Onulaka
Keyword(s):  
Capital Market ◽  
Negative Impact ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Cross Sectional Survey ◽  
Chi Square ◽  
Cross Sectional ◽  
The Public ◽  
Expectation Gap ◽  
The Relationship

Audit expectation gap is a phenomenon that presently attracts the attention of researchers all over the world. The basic problem is in the area of how the public perceives the role of the auditor, which in most cases centers on the prevention of fraud and irregularities. On the other hand the auditor and the auditing profession always exonerate themselves from the fact and perception of the public towards their work. However, the continued litigation against the auditor and the auditing profession has called on a rethink on the relationship of the auditor and the audit work he performs This paper is structured to briefly establish what auditing and its expectations gap is and the relationship audited financial statement has on capital market and to investigate if the identified gaps have any significant effect in the volume of transactions in the Nigerian capital market.It sought to establish the perception of the capital market operators on its existence. Respondents view was also sought on how the gap could be narrowed. Chi-square (χ2) was used to analyze the data obtained from the study. The data were obtained through questionnaire. Two hundred and ninety (290) copies of the instrument were found useful out of 350 copies distributed using purposive sampling technique. In this study, a cross-sectional survey was conducted in Lagos and Abuja stock Exchange to capture the perceptions of key users of financial statements in Nigerian capital market. The tests of hypothesis were done using Microsoft Excel 2010 version. Tests were carried out at a significant level of 5% and twelve degree of freedom. The findings of the study indicated that there is a wide expectation gap in the areas of auditors’ responsibility for fraud prevention and detection. Audit expectation gap has negative impact on the volume of transactions in Nigerian stock exchange.

The Role of Self-Brand Connection on the Relationship Between Athlete Brand Image and Fan Outcomes

2020 ◽  
Vol 34 (3) ◽  
pp. 201-216 ◽  
Author(s):  
Thilo Kunkel ◽  
Rui Biscaia ◽  
Akiko Arai ◽  
Kwame Agyemang
Keyword(s):  
Structural Equation ◽  
Brand Image ◽  
Equation Model ◽  
Mediating Effect ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Team Commitment ◽  
Social Media Platforms ◽  
The Relationship

This research explored the role of athlete on- and off-field brand image on consumer commitment toward the athlete and associated team, preference by the athlete’s sponsor, and the mediating effect of consumers’ self-brand connection on these relationships. Data were collected from fans of soccer players through a cross-sectional survey promoted on social media platforms. A partial least squares structural equation model examined the direct effects of both athlete brand dimensions on athlete commitment, team commitment, and athlete sponsor preference, and the indirect effects mediated via self-brand connection. The results indicate that an athlete’s on-field image is significantly related to athlete sponsor preference, while the off-field image influences athlete commitment and team commitment. Self-brand connection is influenced by athlete off-field image and mediates the relationship between off-field image and athlete commitment. This study contributes to a better understanding of how to manage athlete brands and linkages between fans, athletes, and associated entities.

Information Asymmetry And The Role Of Foreign Investors In Daily Transactions During The Crisis; A Study Of Herding In The Indonesian Stock Exchange

2016 ◽  
Vol 32 (1) ◽  
pp. 269-288 ◽  
Author(s):  
Ishak Ramli ◽  
Sukrisno Agoes ◽  
Ignatius Roni Setyawan
Keyword(s):  
Information Asymmetry ◽  
Capital Market ◽  
Stock Exchange ◽  
Efficient Frontier ◽  
Herding Behavior ◽  
Lower Intensity ◽  
Foreign Investors ◽  
Global Investors ◽  
European Economies

The purpose of this study is to prove that there was herding behavior by domestic investors following that of foreign investors in the Indonesian Capital Market (IDX) and that the herding was influenced by information asymmetry. It began when global investors undertook international diversification to the IDX because the returns on their portfolios were not on the efficient frontier during the crisis and because of the low correlation between Indonesia’s economy and the American and European economies. Utilizing the IDX daily transaction data during the years 2009-2011, the herding behavior of domestic investors, which followed that of foreign investors, was tested by Lakonishok models as was the influence of information asymmetry on the herding. It was found that the herding behavior in the IDX occurred in buy, sell or entire herdings (buy and sell). There were 0.40 to 0.55 buy herdings and 0.20 to 0.40 sell herdings during the crisis in 2008 and 2009. Buy herding then continued in 2010 onwards, although with lower intensity (0.05 to 0.20); however, sell herding decreased dramatically, and there has been almost no sell herding since then. Nevertheless, domestic investors did then sell in the opposite strategy, which was to sell when foreign investors tended to buy. Subsequent findings demonstrated that herding occurred with the influence of information asymmetry between domestic and foreign investors.

scholarly journals The Role of Related Party Transaction and Earning Management in Reducing Tax Aggressiveness

2019 ◽  
Vol 4 (3) ◽  
pp. 134-145
Author(s):  
Masna Ellyani ◽  
Ataina Hudayati
Keyword(s):  
Structural Equation ◽  
Stock Exchange ◽  
Equation Model ◽  
Partial Least Square ◽  
Least Square ◽  
Earning Management ◽  
Positive Role ◽  
Tax Aggressiveness ◽  
The Relationship

This study aimed to examine the influence of related party transactions (RPT) on tax aggressiveness by using earning management as an intervening variable. This study was performed based on the perception that RPT is a positive practice and it is predicted to decrease tax aggressiveness. Besides aiming to find empirical evidence of positive role of RPT in the field of taxation, this study also aimed to test the positive role of earning management in reducing tax aggressiveness. The population of this study was 47 of manufacturing company registered on the Indonesia Stock Exchange for the period of 2014-2016 having transactions with related party (RPT). The analysis method of this study was structural equation model using Partial Least Square (PLS) software. This findings supported the hypothesis that RPT and earning management negatively affects tax aggressiveness. The results of the study also showed that earning management mediate the relationship between RPT and tax aggressiveness.Keywords: RPT, tax aggressiveness, earning management 

scholarly journals Non-financial corporations in Lebanon: Who governs? “The governance myopia”

2016 ◽  
Vol 14 (1) ◽  
pp. 84-95 ◽  
Author(s):  
Mireille Chidiac El Hajj ◽  
Richard Abou Moussa ◽  
Maha Akiki ◽  
Anthony Sassine
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Board Members ◽  
Exchange Market ◽  
Quality Of Information ◽  
Face To Face ◽  
Governance Practices ◽  
First Time

The purpose of this paper is to study governance practices in non-financial enterprises in Lebanon, and it is the first time that such enterprises are studied in the Lebanese context. Only three non-financial institutions are listed in the Beirut Stock Exchange (BSE), which constitute the whole population of this research. Built on Principles, Governance is based on transparency and on accurate, relevant, and timely information in order to support the Board members’ decision-making (OECD, 2015). Balanced between Jensen and Meckling’s (1976) agency theory and Donaldson and Davis’ (1991) Stewardship theory, the results of our Qualitative study showed that the main problems faced by the enterprises are not in the quality of information but rather in its selection and filtering, which opens doors to “Governance Myopia”. Face-to-face interviews showed that the primary conflict in our case is between the non-financial enterprises and the BSE, since the BSE is controlled by the enterprises and is not controlling them. The main reason of such practices come from the fear of the BSE of losing a potential position in the MENA Exchange Market, doubled with the fear of losing potential investors. All these reasons weigh heavily on the Administrators of the BSE in Lebanon, forcing them to choose the “Laisser passer” way. Referring to the soft Law when dealing with the companies, the BSE is playing the double role of a marketer and a controller, thus not willing to impose restrictions. A need for “harder laws”, for “Privatization” of the BSE, and a call to the Capital Market Authority (CMA) to put more restrictions on Corporations should be observed.

scholarly journals The Role of Union Digital Centres in Reducing Social Inequalities in Bangladesh

2021 ◽  
Author(s):  
Md. Minhajul Abedin ◽  
Muhammad Ferdaus ◽  
A.M.M. Mubassher Shah ◽  
Md Abu Sayem
Keyword(s):  
Service Delivery ◽  
Social Inequality ◽  
Rural Areas ◽  
Social Inequalities ◽  
Principal Component ◽  
Cross Sectional ◽  
Network Connection ◽  
Digital Services ◽  
The People

Union Digital Centers have been inaugurated to accomplish the vision ‘Digital Bangladesh’ to empower rural people by providing digital services. The study attempts to assess the role of union digital centers in reducing social inequality. It also tries to identify the barriers in providing digital services to the local disadvantaged people. In this purpose, the study exerted a cross-sectional mixed-method approach. Data were collected from 399 service receivers of UDC through questionnaire survey, 16 KIIs and 5 FGDs. From principal component and correlation analysis, it is found that the grassroots people’s easy accessibility, citizen’s empowerment by minimizing information gap, quality service delivery at affordable price and time-cost-visit reduction play a significant role in reducing social inequality in rural areas. These factors are positively correlated with the effective service delivery of UDCs to reduce social inequality. Lack of awareness, conflict of job responsibility with UP secretaries and weak network connection are the major barriers in providing effective services of UDCs. Still UDCs bring a new dimension in the public service delivery system which empowers the people and reduce social inequalities in rural areas. 

scholarly journals PENGARUH STRUKTUR MODAL DAN STRUKTUR KEPEMILIKAN TERHADAP KINERJA PERUSAHAAN DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

2021 ◽  
Vol 10 (2) ◽  
pp. 100
Author(s):  
Maretha Kris Dwi Anggreni ◽  
Robiyanto Robiyanto
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Capital Structure ◽  
Capital Market ◽  
Stock Exchange ◽  
Analysis Tool ◽  
Company Performance ◽  
Optimal Point ◽  
Purposive Sampling

ABSTRACT This study aims to examine the effect of capital structure and ownership on company performance with moderation of corporate governance in trade, service and investment sector companies in 2016- 2019. The research data was obtained from the Indonesian Capital Market Directory (ICMD) and the annual financial reports listed on the Indonesia Stock Exchange. The total sample obtained based on the purposive sampling method was 76 samples and tested using the Eviews 9 analysis tool. The analysis technique used panel data regression analysis and Moderated Regression Analysis (MRA). Capital structure and corporate governance as proxied by the role of independent commissioners are proven to improve company performance. The implication of this research is to provide empirical evidence regarding the role of corporate governance in moderating capital structure and ownership structure on company performance. The use of debt in the capital structure can have a positive influence on the company's performance. So the applied implication for the company is that it can increase debt in its capital structure by taking into account the optimal point. In addition, companies can optimize the role of independent commissioners as corporate governance to improve supervision within the company so as to improve company performance. ABSTRAKPenelitian ini bertujuan menguji pengaruh struktur modal dan kepemilikan terhadap kinerja perusahaan dengan moderasi corporate governance pada perusahaan sektor perdagangan, jasa dan investasi tahun 2016-2019. Data penelitian ini diperoleh dari Indonesian Capital Market Directory (ICMD) dan laporan keuangan tahunan yang tercatat pada Bursa Efek Indonesia. Total sampel diperoleh berdasarkan metode pengumpulan data purposive sampling adalah sebanyak 76 sampel dan diuji menggunakan alat analisis Eviews 9. Teknik analisis pada penelitian ini menggunakan analisis regresi data panel dan Moderated Regression Analysis (MRA). Variabel struktur modal serta variabel moderasi corporate governance yang diproksikan dengan peran komisaris independen terbukti dapat meningkatkan kinerja perusahaan. Implikasi dari penelitian ini adalah memberikan bukti secara empiris terkait peran corporate governance dalam memoderasi struktur modal dan struktur kepemilikan terhadap kinerja perusahaan. Penggunaan utang pada struktur modal mampu memberikan pengaruh positif terhadap kinerja perusahaan. Maka implikasi terapan bagi perusahaan yaitu dapat meningkatkan utang pada struktur modalnya dengan memperhatikan titik optimal. Selain itu, perusahaan dapat mengoptimalkan peran komisaris independen sebagai corporate governance untuk meningkatkan pengawasan dalam perusahaan sehingga meningkatkan kinerja perusahaan.JEL : G30, G32, G34

Impact of corporate governance, financial and regulatory factors on firms’ acquisition ability

2020 ◽  
Vol 20 (3) ◽  
pp. 461-484
Author(s):  
Tahira Awan ◽  
Syed Zulfiqar Ali Shah ◽  
Muhammad Yar Khan ◽  
Anam Javeed
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Corporate Control ◽  
Chief Executive ◽  
Cross Sectional ◽  
Content Type ◽  
Factors Affecting ◽  
Regulatory Influence ◽  
Financial Strength

Purpose The capital markets witness phenomenal shifts of corporate control. With the shift of world economy into a global one, there has been a rapid increase in the volume of acquisitions. The previous studies shed light on the motives behind acquisition and impact of acquisition on both bidding and target firms. The purpose of this study is to bridge a gap in literature by exploring the factors affecting the acquisition ability (AA) of the firms. The study has analyzed the role of financial strength, corporate governance and regulatory influence on AA of acquiring firm. Design/methodology/approach Cross-sectional data has been analyzed with respect to Pakistan stock exchange for a period of 2004-2017 by using logit regression. Findings Analysis indicates that firm-specific variables are important determinants in firm’s decision to acquire. Chief Executive Officer duality and presence of institutional shareholders on the board contribute to this important phenomenon in the life of the acquiring firms. Bidding firm’s financial strength is also another important consideration while going for corporate control transfer transactions. The empirical results indicate the better AA for firms characterized by minimum capacity usage, lower level of intangible assets, lower debt levels and lower advertising expenses. However, the regulatory factor has no significant role in firms’ AA. The findings of the study are helpful for managers, regulators and policymakers. Originality/value Analyzing the role of financial strength, corporate governance and regulatory influence on AA of acquiring firm is a rare study, especially in an emerging country such as Pakistan.

scholarly journals Leadership Intellectual Stimulation and Team Learning: the Mediating Role of Team Positive Affect

2018 ◽  
Vol 17 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Israel Sánchez-Cardona ◽  
Marisa Salanova Soria ◽  
Susana Llorens-Gumbau
Keyword(s):  
Positive Affect ◽  
Structural Equation ◽  
Team Learning ◽  
Equation Model ◽  
Medium Size ◽  
Intellectual Stimulation ◽  
Cross Sectional ◽  
Mediating Role ◽  
Learning Team

This study investigates how leadership intellectual stimulation relates to team positive affect and team learning. We explore the role of positive affect as mediator between leadership intellectual stimulation and team learning. Using a cross-sectional sample of 562 employees, nested within 130 teams from 44 small and medium size organizations, we implemented Structural Equation Model analysis at the team level. Results provides evidence of the strong influence that intellectual stimulation have on team learning and team positive affect, as well as the potential of positive affect for stimulate team learning. Team positive affect serves as partial mediator between intellectual stimulation and team learning, contributing to explain significant additional variance. Leadership intellectual stimulation is a relevant team social resource that provides support for team learning. As well, positive affect contributes significantly to improve learning among teams. This suggests the importance of developing leadership behaviors that encourage learning and team positive affect, which contributes to team learning and hence to performance.

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