scholarly journals The Influence of Sustainable Earnings on Stock Price: Evidence from Publicly Listed Vietnamese Business Enterprises

2020 ◽  
Vol 16 (2) ◽  
pp. 101-121
Author(s):  
Nhung Hong Do ◽  
Nha Van Tue Pham
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Earnings Persistence ◽  
Market Anomalies ◽  
Future Earnings ◽  
Logit Function ◽  
Asset Turnover ◽  
The Relationship

Expected earnings and stock price are important determinants of investors’ decision. This research is conducted to estimate earnings persistence and examine the relationship between sustainable earnings on price-to-earning (P/E) ratio based on financial statements’ information of 631 publicly listed non-financial companies on Vietnam’s stock market, by using Ordinary Least Squares (OLS) and Logit function. The results show that earnings persistence depends on net operating assets growth, profit margin changes, operating asset turnover changes and past profitability. Besides, both the sustainable and unsustainable components of earnings growth are proved to empirically affect P/E ratio, even though investors underreact to sustainable earnings and overreact to unsustainable earnings. This study helps to improve investors’ perception of their future earnings, investment value and companies’ sustainable growth, particularly in the context of developing stock market of Vietnam which is full of market anomalies.

LOCAL INSTITUTIONAL ENVIRONMENT AND STOCK PRICE CRASH RISK: EVIDENCE FROM CHINA

2020 ◽  
pp. 1-22
Author(s):  
XIAOJIAN TANG ◽  
STEPHANIE TSUI ◽  
KUANG-TA LO
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Institutional Environment ◽  
Crash Risk ◽  
Level Data ◽  
The Relationship ◽  
Privately Owned ◽  
Province Level

Based on province-level data on China’s local institutional environment from 2008 to 2014, we explore the relationship between the local institutional environment and stock price crash risk. We find that a stronger local institutional environment curbs stock price crash risk. Furthermore, we explore the relationship between local institutional environment and stock price crash risk for state-owned versus privately owned enterprises. We find that a stronger local institutional environment is more likely to curb stock price crash risk in state-owned enterprises than in privately owned enterprises. Our results are robust to additional tests. These findings suggest that it is necessary to accelerate the progress of local marketization in China to ensure the development of the stock market and a strong economy.

WHEN THE BUBBLE IS GOING TO BURST …

1999 ◽  
Vol 02 (03) ◽  
pp. 285-292 ◽  
Author(s):  
JING CHEN
Keyword(s):  
Hong Kong ◽  
Stock Market ◽  
Stock Price ◽  
Price Change ◽  
Convertible Bond ◽  
Price Behavior ◽  
Clear Signal ◽  
Security Markets ◽  
Relationship Of ◽  
The Relationship

There has been constant debate about the predictability of the security markets. We examine the relationship between the prices of a stock and its convertible bond during the Hong Kong stock market bubble of 1997 and its subsequent crash. We find that the price behavior of the share and the convertible bond not only gave a clear signal of the market reversal, but also the minimum range of the stock price change. This example offers concrete evidence that the market becomes highly predictable at times and gives us a chance to understand the relationship of the underlying stock and its derivatives during market bubbles.

scholarly journals The relationship between macroeconomic factors and stock market volatility: empirical evidence from the Vietnam stock market

2013 ◽  
Vol 16 (3) ◽  
pp. 86-100
Author(s):  
Kieu Minh Nguyen ◽  
Diep Van Nguyen
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Money Supply ◽  
Stock Price ◽  
Price Index ◽  
Macroeconomic Factors ◽  
Stock Price Index ◽  
The Exchange Rate ◽  
The Relationship

The main target of this study is to measure the relationship of macroeconomic factors to the volatility of the stock market in Vietnam (through stock price VN-index). There are four factors including the consumer price index (measure of inflation), the exchange rate of USD/VND and money supply M2. Research shows that the stock price VN-Index has a positive relationship with the money supply M2 and the domestic gold price in long term. On the contrary, it has a negative relationship with the inflation while it does not have any connection to the exchange rate and stock price index. In short term, the current stock price index has proportional to the stock price index last month and inversely proportional to the exchange rate. The estimated speed of adjustment indicates that the Vietnam stock market converges to the equilibrium about 8 months (adjusted approximately 13.04% per month) to reach equilibrium in the long term.

scholarly journals PENGARUH KEPEMILIKAN INSTITUSIONAL TERHADAP KARAKTERISTIK PASAR SAHAM DI BURSA EFEK INDONESIA

2017 ◽  
pp. 1-12
Author(s):  
Donalson Silalahi
Keyword(s):  
Standard Deviation ◽  
Stock Market ◽  
Adverse Selection ◽  
Stock Price ◽  
Trading Volume ◽  
Stock Exchange ◽  
Control Variable ◽  
Institutional Ownership ◽  
Adverse Selection Costs ◽  
The Relationship

The role of institutional ownership in the financial markets became very important. However, until today there is no consensus among researchers about the influence of institutional ownership on the characteristic of stock market. Therefore, researchers are motivated to conduct further research the influence of institutional ownership on the characteristic of stock market. The research conducted at the Indonesian Stock Exchange with traded spread and adverse selection costs as dependent variable and institutional ownership as independent variable. In addition to institutional ownership, also used standard deviation of common stock price and trading volume as a control variable to clarify the relationship of institutional ownership on the characteristic of stock market. The study was conducted on 120 firms with observations in the period 2010-2011. All the required data obtained from the Indonesian Capital Market Directory. The results showed that: First, institutional ownership has a negative and significant effect on traded spread. Second, the variability of traded spread is able to be explained by the variability of institutional ownership, standard deviation of the stock price, and trading volume 24.8 percent. Third, institutional ownership has a negative and significant effect on adverse selection costs. Fourth, the variability of adverse selection costs is able to be explained by the variability of institutional ownership, standard deviation of the stock price, and trading volume 26.2 percent. Fifth, the relationship between institutional ownership to traded spread and adverse selection cost before and after entering the control variables remain negative and significant.

scholarly journals How Does CSR Activity Affect Sustainable Growth and Value of Corporations? Evidence from Korea

2019 ◽  
Vol 11 (2) ◽  
pp. 508 ◽  
Author(s):  
Kyungtag Lee ◽  
Hyunchul Lee
Keyword(s):  
Social Responsibility ◽  
Least Squares ◽  
Optimal Investment ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Quantile Regressions ◽  
Valuable Data ◽  
Middle Range ◽  
The Relationship

This study explores the relationship between Korean listed companies’ corporation social responsibility (CSR) activities and their sustainable growth and valuation, focusing specifically on the nonlinear aspect. The nonlinear quantile regressions used in this study reported that CSR activities increased corporation value exclusively in the middle-range groups (i.e., τ_25, τ_50, τ_75) of Tobin’s q, a proxy for corporation growth and value. However, the linear ordinary least squares (OLS) regression did not indicate similar results. Our findings also showed that CSR activities affect the valuation of Korean listed corporations in a nonlinear, rather than in a linear way. Considering that most prior studies are devoted to reporting linear results from classical ordinary least squares estimations between CSR activities and corporation value, our study fills the gap in the literature. The findings of this study may provide corporation managers and researchers with valuable data concerning a corporation’s optimal investment point for their CSR activities for sustainable growth and the maximization of corporation value.

scholarly journals The Market Sentiment Trend, Investor Inertia, and Post-Earnings Announcement Drift: Evidence from Korea’s Stock Market

2019 ◽  
Vol 11 (18) ◽  
pp. 5137 ◽  
Author(s):  
Shin ◽  
Shin ◽  
Kim
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Specific Point ◽  
Market Anomalies ◽  
Earnings Announcement ◽  
Market Sentiment ◽  
Earnings Information ◽  
Post Earnings Announcement Drift ◽  
Negative Drift ◽  
Directional Trend

We investigated whether post-earnings announcement drift (PEAD) in the Korean stock market is related to investor inertial behavior under a directional trend in market sentiment. Given that investors tend to procrastinate due to their belief in the persistence of the current market’s condition and thus underreact to earnings information, we examined whether this investor inertia influences the drift in stock price following an earnings announcement. Our findings show that when the market sentiment continues to shift upwardly (downwardly) over the pre- and post-earnings announcement period, positive (negative) drift occurs. Note that these results are robust to control for the effect of market sentiment at a specific point in time. We suggest that investors do not fully respond to new earnings information due to investor inertial behavior under the market sentiment with a consistent trend. Overall, our study sheds light on a determinant of PEAD as one of the market anomalies in terms of investors’ cognitive bias by documenting the relation between PEAD and investor inertia.

scholarly journals PENGARUH INFORMASI AKUNTANSI TERHADAP HARGA SAHAM PADA PERUSAHAAN FOOD AND BEVERAGES YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2010-2011

2017 ◽  
pp. 15-22
Author(s):  
Jonner Pangaribuan
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Price Change ◽  
Total Asset ◽  
Return On Equity ◽  
Book Value ◽  
Food And Beverages ◽  
Asset Turnover

Investors intentionally want to get profit contionously.In stock market profit is gained from price differnce of buying and seling price, besides dividend. Theoritical approach (fundamental approach it is concluded that stock price is influenced by accounting infornatio.. In this research it is intended to find out whether the four fundamental facorscan can explain the stock price change. The selected four fundamental factors are return on equity, debt equuity ratio , book value, dan total asset turnover..The result shows that the four fundamental factors can not explain the price change of Food and Beverages companies stocks.

scholarly journals Google Search and Stock Market Performance: Evidence from Malaysia

2019 ◽  
Vol 2 (1) ◽  
pp. 49-55
Author(s):  
Kelvin Yong Ming Lee
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Trading Volume ◽  
Market Performance ◽  
Volume Index ◽  
Investment Strategies ◽  
Search Volume ◽  
Stock Market Performance ◽  
Google Search ◽  
The Relationship

Nowadays, the internet changes the way for information searching and processing. Along with that, Google search had become the most popular search engine on the web since it allows users access to the information at a minimal cost. This study intends to investigate the relationship between Google search volume and the Malaysian stock market performance in the aspects of returns, volatility, and trading volume. The sample of this study consisted of 29 listed companies from the Malaysian stock market. The sample period of this study covered the period from 2016 to 2018. The data related to the stock market were downloaded from Investing.com, whereas the data related to Google search were downloaded from the database of Google Trend. The results indicated that the Google search volume index (GSVI) of the previous week tends to have significant positive impacts on the stock price changes. Thus, a higher search volume of the specific company name tends to increase the stock price of the particular company in the following week. Besides that, this study also revealed that the stock market performance tends to be affected by stock market performance in the previous week. Lastly, this study suggested that signals of GSVI need to be included in the investment strategies.  

scholarly journals DOES INCOME SMOOTHING IMPROVE INFORMATIVENESS OF STOCK PRICES?

2017 ◽  
Vol 15 (2) ◽  
pp. 225-239
Author(s):  
Shinta Ningtiyas Nazar
Keyword(s):  
Empirical Evidence ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Income Smoothing ◽  
Earnings Persistence ◽  
Future Earnings ◽  
Earnings Response ◽  
Negative Effect ◽  
Using Data

The purpose of this research is to get empirical evidence from effect Income smoothing  to Informativeness of Stock Prices  in Indonesian Stock Exchange (IDX). Population from this research is take from companies that have been listing Index LQ 45 in IDX form 2003 until 2015. Income Smoothing is masured by Jones’s Model which have been modified by Kothari et. all (2005).  Informativeness of stock price using Zarowin and Tucker Model (2006) Future Earnings Response Coeficient, and  the relations to earnings persistence, which is can been seen from  relation from current earnings dan future earnings.   The research is using data from year 2003 until 2015 period, and  year 2014 used as terminal year.  That found  income smoothing have a negative effect to informativeness of stock  price and also found  the managers’ income smoothing action always decreases earnings from 2013 to 2015. Current earnings have related to future earnings.

Modeling the Momentum Effect in Stock Markets to Propose a New Portfolio Algorithm

2018 ◽  
Vol 22 (7) ◽  
pp. 1016-1025
Author(s):  
Kazunori Umino ◽  
Takamasa Kikuchi ◽  
Masaaki Kunigami ◽  
Takashi Yamada ◽  
Takao Terano ◽  
...  
Keyword(s):  
Stock Market ◽  
External Force ◽  
Stock Markets ◽  
Stock Price ◽  
Reconstruction Algorithm ◽  
Excess Return ◽  
Momentum Effect ◽  
Price Fluctuations ◽  
Model Based ◽  
The Relationship

This research has two objectives: (1) to model and analyze the momentum effect and (2) to propose a portfolio-reconstruction algorithm that uses the momentum effect to obtain excess return. The momentum effect tends to be present in the stock market and describes the phenomenon whereby rising (declining) stocks tend to continue to rise (decline). However, because existing research does not separate momentum effects from stock price fluctuations, it is not always possible to obtain an excess return when working with an unknown dataset that contains a momentum effect. In this research, we define a new external-force momentum-effect (EFME) model based on bias in stock price rises (declines). We prepared an artificial stock dataset that contained this momentum effect and constructed a portfolio with the proposed algorithm. Then, we analyzed the relationship between the EFME model and excess return and verify that excess return is obtained. Additionally, we confirmed that the proposed method yields higher excess return than the existing method when applied to artificial and real stock datasets.

Sign in / Sign up

Export Citation Format

Share Document