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 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 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.

Contribution of StockMarket Towards Economic Growth: An Empirical Study on Bangladesh Economy

2017 ◽  
Vol 13 (4) ◽  
pp. 238 ◽  
Author(s):  
Sonia Rezina ◽  
Nusrat Jahan ◽  
Mohitul Ameen Ahmed Mustafi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Market Performance ◽  
Unit Root Test ◽  
Causality Test ◽  
Stock Market Development ◽  
Stock Market Performance ◽  
Augmented Dickey Fuller ◽  
Johansen Cointegration Test ◽  
The Impact

The economic growth of a country is influenced by many different factors. This study aims to investigate the causal relationship between stock market development and economic growth in Bangladesh as well as the impact of stock market performance upon the economic growth of Bangladesh. The stock market performance has been measured by market capitalization ratio, number of listed companies, total value traded and turnover ratio; and the economic growth was represented by real gross domestic product. The periods taken for study were from year 1994 to year 2015.The effect of the stock market reform will also be addressed to explain the relationship. The study has been conducted using Augmented Dickey- Fuller Unit Root Test, Johansen Cointegration Test and the Granger Causality Test. The findings of the research should help the policy makers and regulators to look after their interest in the financial sector of the country.

scholarly journals STOCK MARKET PERFORMANCE AND THE AUGMENTATION OF FRONTIER ECONOMIES: A Comparative Scrutiny of Nigeria & Mauritius

2016 ◽  
Author(s):  
Edesiri Godsday Okoro
Keyword(s):  
Stock Market ◽  
Financial Services ◽  
Negative Impact ◽  
Market Performance ◽  
Modus Operandi ◽  
Market Capitalization ◽  
Paired Samples ◽  
Economic Progress ◽  
Stock Market Performance ◽  
Fail Safe

<p><em>This paper provides a comparative analysis on stock market performance and augmentation of frontier economies: Nigeria and Mauritius. Using a Paired-Samples T-test statistical modus-operandi, data of Market Capitalization and Gross Domestic Product were obtained from the Central Bank of Nigeria Statistical Bulletin and Annual Financial Services Commission Statistical Bulletin of Mauritius during 2006-2010. The findings revealed that stock market performance for Mauritius was superior to Nigeria and same for GDP. In addition, the negativity shows that stock market performance has a negative impact on economic progress in Nigeria and Mauritius. This may be due to the fact that frontier markets give attention to money market while relegating stock market to the background. </em><em>On this note, since stock market contributes significantly to economic growth, efforts by both governments should be that of developing policies aimed at further strengthening stock market. These policies should not be ‘written-policies’ but policies that can be put into practice. Also, market capitalization can be stimulated by encouraging investments in stock market. This can be done by ensuring investors are fail-safe of their investments. When investors perceive a safety of their investment, they may want to commit their resources and in turn make the economy to flourish.</em></p>

scholarly journals Ownership Structure, Corporate Governance and Capital Structure of Non-Financial Firms of Pakistan

2018 ◽  
Vol 10 (1) ◽  
pp. 31-46
Author(s):  
Hassan Ahmad ◽  
Nasreen Akhter ◽  
Tariq Siddiq ◽  
Zahid Iqbal
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Ownership Structure ◽  
Negative Impact ◽  
Institutional Ownership ◽  
Board Independence ◽  
Managerial Ownership ◽  
Debt Ratio ◽  
Significant Negative Impact ◽  
The Impact

This study is undertaken with the purpose of investigating the impact of ownership structure and corporate governance on the capital structure of Pakistani listed firms from 2011-2014, feasible general least square is used to investigate the impact of ownership structure and corporate governance on capital structure of KSE 100 index firms. Explanatory variables include ownership concentration, managerial ownership, foreign ownership, institutional ownership, board size, board independence and CEO duality along with the three control variables namely firm size, firm profitability and liquidity. There is insignificant positive relationship between ownership concentration and capital structure, managerial ownership has a significant negative impact on debt ratio. Foreign ownership has also a significant negative impact on firm capital structure and institutional ownership has significant positive impact on capital structure. Board size is positively related to capital structure, board independence also positively related to firm’s debt ratio but CEO duality negatively related to the dependent variable, all these variables have significant impact on capital structure of Pakistani firms. 

scholarly journals Evaluation of the Impact of Macroeconomic Variables on Stock Market Performance in Nigeria

2019 ◽  
Vol 5 (2) ◽  
pp. 34 ◽  
Author(s):  
Cordelia Onyinyechi Omodero ◽  
Sunday Mlanga
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Price Index ◽  
Market Performance ◽  
Share Price ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Stock Market Performance ◽  
The Impact

Stock market is an essential part of a nation’s economy and requires adequate evaluation of all factors that militate against its performance. This study investigates the role of macroeconomic variables in determining the stock market performance in Nigeria using annual time series data covering a period from 2009 to 2018. These data have been sourced from the World Bank Development Indicators, International Monetary Fund and CBN Statistical Bulletin. The results from the regression analysis indicate that exchange rate and interest rate do not have significant impact on share price index while inflation rate exerts a significant negative influence on share price index. On the contrary and in line with the concept of GDP and stock market performance, GDP significantly and positively impacts on share price index. The study among others suggests that the growth of the economy should be maintained to keep stock market flourishing while macroeconomic variables such as inflation, interest rate and exchange rate should be appropriately regulated by the relevant authorities to curtail all negative influences on stock market performance.

scholarly journals Dynamic impact of Gold Prices, Oil Prices and Exchange Rate on Stock Market Performance: A Case of Pakistan’s Stock Exchange (KSE 100 Index)

2021 ◽  
Vol 7 (1) ◽  
pp. 1-12
Author(s):  
Asif Ali ◽  
Muhammad Kamran Khan ◽  
Hamid Ullah
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Foreign Exchange ◽  
Market Performance ◽  
Oil Prices ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Term Relation ◽  
Stock Market Performance ◽  
The Impact

Currently emerging markets are passing through economic turmoil due to considerable increases in the prices of oil and gold with significant variation in the foreign exchange market. All the macroeconomic variables are touching the highest value which was never occurred in the history of Pakistan. Taking advantages of the current situation the study has examined the impact of gold prices, oil prices and exchange rate on stock market performance. For this purpose, the study has used daily data of these macroeconomic variables for the period of 2003 to 2018. By using time series data analysis, it reveals that there is no co-integration or long-term relation among these variables; however, the vector autoregressive model showed significant short-term relation among the securities market performance, foreign exchange rate, prices of oil and gold. The analysis also suggests that significant changes in the prices of oil, foreign exchange rates and the prices of gold have a negative lagged effect on the performance of the stock market.

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