scholarly journals Pan(dem)ic Reactions in Turkish Stock Market: Evidence from share repurchases

2020 ◽  
Author(s):  
Burak Pirgaip
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Emerging Market ◽  
Policy Implications ◽  
Global Markets ◽  
Share Repurchases ◽  
Share Repurchase ◽  
Short Term ◽  
Financial Uncertainty ◽  
The Impact

Abstract Share repurchases have been widely used in global markets for years for various purposes such as to pay out cash, to stabilize stock prices, and so on. However, their use has recently been challenged due to the economic and financial uncertainty imposed by the COVID-19 outbreak. Not only governments have put bans or restrictions on the repurchasing transactions but also some major companies themselves have suspended their buyback programmes to preserve cash. On the other hand, repurchase activity has manifested itself in Turkish capital markets somewhat unexpectedly under uncertain market conditions. This study is one of the first attempts to explore the impact of share repurchase transactions on stock returns in an emerging market severely hit by COVID-19. Event study analyses reveal that market reaction to repurchase activity in the aftermath of the pandemic declaration of March 11, 2020 was significantly positive. Moreover, short-term stock performance of repurchasing firms was far greater than that of their non-repurchasing peers. These results have important policy implications in terms of corporate payout decisions which have recently been challenged by the new coronavirus.

scholarly journals The Impact of Share Repurchase on R&D Expenditure: An Empirical Study from High-tech industry

2020 ◽  
Vol 214 ◽  
pp. 02018
Author(s):  
Hongwei Cheng ◽  
Liang Yin ◽  
Xinwei Luo
Keyword(s):  
Stock Price ◽  
High Tech ◽  
Share Repurchases ◽  
Share Repurchase ◽  
Short Term ◽  
High Tech Industry ◽  
The Sustainable Development ◽  
Stock Price Reaction ◽  
Term Performance ◽  
The Impact

After the policy was released in 2018, listed companies increased the frequency and amount of repurchases. Some studies believe that managers will give up long-term investment which is beneficial to the sustainable development of enterprises due to the short-term performance response caused by share repurchases. This paper took the repurchase firms in the high-tech industry from 2008 to 2018 as samples, it is found that the company’s share repurchase promotes R&D expenditure and will not reduce expenditure in R&D for short-term stock price reaction. Furthermore, the heterogeneity study found that in state-owned firms, the company’s share buybacks have a more significant role in promoting R&D expenditure.

scholarly journals The impact of COVID-19 on stock market returns: Case of Bourse Regionale des Valeurs Mobilieres

2021 ◽  
Vol 18 ◽  
pp. 207-214
Author(s):  
Franck Edouard Gnahe
Keyword(s):  
Stock Returns ◽  
Emerging Market ◽  
Least Square ◽  
Policy Implications ◽  
Stock Market Returns ◽  
Ordinary Least Square ◽  
Market Structures ◽  
Regional Market ◽  
Steady Growth ◽  
The Impact

Using the pooled ordinary least square approach, this paper investigates the effect of Covid-19 on the regional financial exchange namely, Bourse Regionale des Valeur Mobileres (BRVM). In this note, we propose the hypothesis that COVID-19 has affected the regional financial exchange rate resistance to the shocks. We find that the regional financial exchange reacted proactively to the pandemic in the time of March 04, 2020 to April 20, 2020 after the occurrence. Our analysis also suggest negative regional market reaction was strong during the early days of the pandemic. However, this impact is transitory with implementation of official government policies, the stock returns maintain steady growth. We conclude that pandemic has changed the resistance of the regional financial exchange to shock. Therefore, the policy implications is to consider these asymmetries when determining the monetary policy and effectiveness of financial system rules to promote competitive emerging market structures and trade liberalization in the regional exchange market and developing countries.

scholarly journals Testing the Information-Based Trading Hypothesis in the Option Market: Evidence from Share Repurchases

2019 ◽  
Vol 12 (4) ◽  
pp. 179 ◽  
Author(s):  
Badshah ◽  
Koerniadi ◽  
Kolari
Keyword(s):  
Stock Returns ◽  
Market Share ◽  
Private Information ◽  
Stock Prices ◽  
Implied Volatility ◽  
Share Repurchases ◽  
Share Repurchase ◽  
Open Market ◽  
Option Prices ◽  
Abnormal Stock Returns

The informed options trading hypothesis posits that option prices lead stock prices. In this paper, we extended the research on this hypothesis to open-market share repurchases. Empirical tests showed that the implied volatility spread was not significantly related to buy-and-hold abnormal stock returns. However, further evidence reveal a significant relationship between implied volatility spread and subsequent stock return volatility around open-market share repurchase events. We concluded that option traders have private information on the volatility of stock returns and superior information processing ability that accounts for prescient pricing behavior in options relative to stocks.

Macroeconomic Determinants of the Behavior of Dhaka Stock Exchange (DSE)

2016 ◽  
Vol 7 (1) ◽  
pp. 1-17
Author(s):  
Nabila Nisha
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Stock Exchange ◽  
Emerging Market ◽  
Macroeconomic Factors ◽  
Developed Economies ◽  
Regulatory Changes ◽  
Considerable Impact ◽  
Macroeconomic Determinants ◽  
The Impact

Many past studies documented a strong evidence of a linkage between stock prices and macroeconomic activities across different stock markets and time horizons. However, most of these studies have focused on developed economies and highlighted the impact of either domestic variables or a few global factors. In recent times, the impact of global macroeconomic factors upon stock returns has garnered a lot of interest due to globalization. The aim of this paper is therefore to examine the combined influence of global and domestic macroeconomic factors upon stock returns and extend this relationship to an emerging market of Bangladesh. Using Vector Autoregression (VAR) model, findings indicate a considerable impact of money supply for the stock returns of Dhaka Stock Exchange (DSE). Additionally, an insignificant influence of the world price index is observed, which implies a complete segmentation of DSE from the global financial markets. Finally, the study highlights regulatory changes and policy-making decisions from the perspective of Bangladesh.

scholarly journals The impact of the COVID-19 outbreak on Chinese-listed tourism stocks

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Wenmin Wu ◽  
Chien-Chiang Lee ◽  
Wenwu Xing ◽  
Shan-Ju Ho
Keyword(s):  
Stock Returns ◽  
Cultural Differences ◽  
Stock Price ◽  
Negative Impact ◽  
Tourism Industry ◽  
Regression Analyses ◽  
Short Term ◽  
Tourism Sector ◽  
Event Study Method ◽  
The Impact

AbstractThis research explored the effects of the coronavirus disease (COVID-19) outbreak on stock price movements of China’s tourism industry by using an event study method. The results showed that the crisis negatively impacted tourism sector stocks. Further quantile regression analyses supported the non-linear relationship between the government’s responses and stock returns. The results present that the resurgence of the virus in Beijing did bring about a short-term negative impact on the tourism industry. The empirical results can be used for future researchers to conduct a comparative study of cultural differences concerning government responses to the COVID-19.

scholarly journals Do Share Repurchases Distort Stock Prices? Evidence from the United States and Malaysia

2021 ◽  
pp. 232102222110243
Author(s):  
Chong-Meng Chee ◽  
Nazrul Hisyam bin Ab Razak ◽  
Bany Ariffin bin Amin Noordin
Keyword(s):  
Stock Prices ◽  
The United States ◽  
Jel Classification ◽  
Share Repurchases ◽  
Alternative Measure ◽  
Share Repurchase ◽  
Price Support ◽  
Global Finance ◽  
The Usa ◽  
Sample Support

Heavy share buyback years after the global finance crisis 2008–2009 drew criticism from scholars and financial press that share repurchases were being used by firms to manipulate their stock prices. This paper examines whether a greater firm’s repurchase intensity distorts stock prices reflecting to information. We analyse 2 sets of unbalanced panel data that contain a sample of 337 US and another sample of 167 Malaysian repurchasing firms between 2012 and 2016. Contrary to the criticism, we find that a greater firms’ share buyback intensity in the USA stimulates faster incorporation of information in price and results in more efficient stock prices. The main findings hold true and are robust when an alternative measure of share repurchase intensity was used. The findings of US sample support the notion that share repurchase serves as a signalling tool and price support to promote more efficient stock prices. We also find no strong evidence supporting the notion that shares repurchased by Malaysian firms distort stock prices. JEL Classification: G10, G14, G35

scholarly journals The continuous market cycle of the short term insurance industry

2012 ◽  
Vol 2 (1) ◽  
pp. 22-29
Author(s):  
Liezel Essel ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
Insurance Industry ◽  
Emerging Market ◽  
Literature Study ◽  
Short Term ◽  
Financial Decision Making ◽  
Empirical Survey ◽  
Term Insurance ◽  
Financial Decision ◽  
The Impact

The short-term insurance industry is a cyclical type of business due to the impact of the continuous market cycle. This cycle has a growth phase, soft market phase, hard market phase and a break-even phase. The objective of the research paper focuses on the improvement of financial decision-making when executives of the short-term insurance industry are managing their business during the various phases of the continuous market cycle. Both a literature study and an empirical survey were necessary to achieve the research objective. The empirical survey included the contributions of the top nine commercial and corporate short-term insurers in South Africa. They represented more than 77% of the total gross written premiums in 2009 and can thus be considered as the leaders of the short-term insurance industry in this country. The conclusions of the study should be valuable to other developing countries with emerging market economies as South Africa is also classified as such. The study focused on the various factors which may cause the continuous market cycle, the problem areas which the executives experience concerning the continuous market cycle, and how often various factors are adjusted by the short-term insurers to account for changes in the continuous market cycle.

A Decade After the 2009 Global Recession: Macroeconomic Developments

2021 ◽  
pp. 2150011
Author(s):  
Wee Chian Koh ◽  
Shu Yu
Keyword(s):  
Low Income ◽  
Developing Economies ◽  
Emerging Market ◽  
Bank Lending ◽  
Low Income Countries ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Cross Border ◽  
Global Recession ◽  
The Impact

Emerging market and developing economies (EMDEs) weathered the 2009 global recession relatively well. However, the impact of the global recession varied across economies. EMDEs with stronger pre-crisis fundamentals — such as large foreign exchange reserves, sound fiscal positions, and low inflation — suffered milder growth slowdowns, in part due to their greater capacity to engage in monetary and fiscal stimulus. Low-income countries were also resilient, as foreign aid and inflows of remittances remained relatively stable. In contrast, EMDEs that were heavily dependent on short-term capital flows — such as portfolio investment and cross-border bank lending — fared less well, especially those in Europe and Central Asia. A key lesson for EMDEs is the need to strengthen macroeconomic frameworks and create policy space to prepare for future global downturns.

scholarly journals Impact of COVID-19 on Forecasting Stock Prices: An Integration of Stationary Wavelet Transform and Bidirectional Long Short-Term Memory

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-12 ◽  
Author(s):  
Daniel Štifanić ◽  
Jelena Musulin ◽  
Adrijana Miočević ◽  
Sandi Baressi Šegota ◽  
Roman Šubić ◽  
...  
Keyword(s):  
Crude Oil ◽  
Stock Prices ◽  
Short Term Memory ◽  
Oil Price ◽  
Stationary Wavelet Transform ◽  
Crude Oil Price ◽  
Short Term ◽  
Term Memory ◽  
Long Short Term Memory ◽  
The Impact

COVID-19 is an infectious disease that mostly affects the respiratory system. At the time of this research being performed, there were more than 1.4 million cases of COVID-19, and one of the biggest anxieties is not just our health, but our livelihoods, too. In this research, authors investigate the impact of COVID-19 on the global economy, more specifically, the impact of COVID-19 on the financial movement of Crude Oil price and three US stock indexes: DJI, S&P 500, and NASDAQ Composite. The proposed system for predicting commodity and stock prices integrates the stationary wavelet transform (SWT) and bidirectional long short-term memory (BDLSTM) networks. Firstly, SWT is used to decompose the data into approximation and detail coefficients. After decomposition, data of Crude Oil price and stock market indexes along with COVID-19 confirmed cases were used as input variables for future price movement forecasting. As a result, the proposed system BDLSTM + WT-ADA achieved satisfactory results in terms of five-day Crude Oil price forecast.

ESG Scores and Bank Performance During COVID-19

2022 ◽  
pp. 241-260
Author(s):  
Gamze Ozturk Danisman
Keyword(s):  
Stock Returns ◽  
Extended Period ◽  
Negative Influence ◽  
Policy Implications ◽  
European Countries ◽  
Time Period ◽  
Bank Stock Returns ◽  
Bank Stock ◽  
The Impact ◽  
Extended Time Period

This chapter examines the impact of ESG scores on bank stock returns as a response to the COVID-19 pandemic. The authors use a sample of 73 publicly listed banks from 15 developed European countries. They perform the analysis using two different periods that cover the pandemic: the first major wave period of COVID-19 (February-April 2020) and an extended period (February 2020-April 2021). The findings reveal the negative influence of the COVID-19 pandemic on bank stock returns during the first wave of the pandemic. They further find that, during the first wave, stock returns of banks with higher ESG scores were more resilient to the pandemic. However, when they use the extended time period (from February 2020-April 2021), the influence of both COVID-19 and ESG scores becomes insignificant. The chapter's findings have important policy implications during unprecedented crisis times such as COVID-19.

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