scholarly journals "Much ado about nothing": Short selling ban effectiveness on bank stock prices

2014 ◽  
Vol 4 (4) ◽  
pp. 48-60
Author(s):  
Giuseppe Galloppo ◽  
Mauro Aliano ◽  
Abdelmoneim Youssef

Most regulators around the world reacted to the 2007-09 crisis by imposing bans on short selling. Using data from seven equity markets, this study empirically examines the impact of the 2008 short-selling bans on financial stocks. Using panel and matching techniques, evidence indicates that bans on short-selling (i) on the whole widen volatility both in terms of High-Low spread and GARCH analysis, (ii) were not able to reduce systematic risk, (iii) overall failed to support prices. On the whole our results are in line with previous literature.

2019 ◽  
Vol 2019 (256) ◽  
Author(s):  
Mauricio Vargas ◽  
Daniela Hess

Using data from 1980-2017, this paper estimates a Global VAR (GVAR) model taylored for the Caribbean region which includes its major trading partners, representing altogether around 60 percent of the global economy. We provide stilyzed facts of the main interrelations between the Caribbean region and the rest of the world, and then we quantify the impact of external shocks on Caribbean countries through the application of two case studies: i) a change in the international price of oil, and ii) an increase in the U.S. GDP. We confirmed that Caribbean countries are highly exposed to external factors, and that a fall in oil prices and an increase in the U.S. GDP have a positive and large impact on most of them after controlling for financial variables, exchange rate fluctuations and overall price changes. The results from the model help to disentangle effects from various channels that interact at the same time, such as flows of tourists, trade of goods, and changes in economic conditions in the largest economies of the globe.


2014 ◽  
Vol 39 (1) ◽  
pp. 41-56
Author(s):  
Amlendu Kumar Dubey

This paper is an attempt in analysing time-scale dependence of systematic risk of stocks for an emerging market economy. Financial markets all over the world are characterized by heterogeneous investors. For example, different investors have different time horizons of investment which in turn is highly related to perception of risk of different investors in holding these stocks. Also, in emerging market economies, economic conditions are very fluid. Not only new firms are joining the market but existing firms themselves are changing rapidly; they are expanding into new markets, and at times with different products. Therefore, assuming that the risk in holding a firm's stock will be constant over a longer period is rather a restrictive assumption. Also, Indian equity markets are one of the most dynamic equity markets in the world today. The last decade has been the most eventful period for the Indian securities market. Resource mobilization in the primary market has increased dramatically, rising sixfold between 2000 and 2010 (NSE, 2010), which is having a very significant impact on the risk-return trade-off in the secondary market. Market capitalization has grown substantially over the period indicating that not only more companies are using the stock markets for resource mobilization today but overall market participation has also increased considerably. This paper tests for time-scale stability of beta of different trading stocks in the Indian equity market, using wavelet filters following Gencay et al (2002; 2005) and Fernandez (2006) and finds considerable instability in beta estimates. Based on this analysis, time-scale dependent beta estimates are provided for all the stocks under consideration. Time-scale dependent estimates of systematic risk embedded in different stocks will provide considerable information to practitioners in terms of benefits of diversification while constructing different portfolios using different stocks traded in Indian equity markets. Essentially, with the tools explained in this paper, practitioners will be able to incorporate their horizons of investment while planning for portfolio diversification. Also, the results emphasize the importance of a hedging strategy that varies over different time horizons of investments over a strategy where the hedge ratio is invariant to different time horizons.


2019 ◽  
Vol 11 (3) ◽  
pp. 32
Author(s):  
Jyoti Gupta ◽  
Benjamin Graubner

The paper looks at the impact of information on stock prices within the context of the German Market. Using data set from the Thomson Reuters, a new platform using a self-written Java Program, between the time period of 27 August and 29 September 2013, we analysed the impact of information on stock prices in the German Market. We developed an Information Based Return Model (IBRM) to analyse how information drive stock prices. We counted certain words within newspaper articles to understand their meaning. We analyse the impact of those word-clusters on different trading intervals. Our Information Based return Model shows that stock prices anticipate news from the non-trading time within the first minute of trading. We also analysed the time drifts between news release and personal reception. Our results show that the German Market anticipates new information as effectively as the US Market. 


Author(s):  
Khakim Gayurov ◽  
◽  
Munira Toshmatova ◽  

According to the World Health Organization, the new coronavirus, which first appeared in the Chinese city of Wuhan in December last year, infected more than 110,000 people in at least 110 countries and territories of the world. The virus outbreak has become one of the most serious threats to the global economy and financial markets. Large institutions and banks have reduced their forecasts for the global economy, and the Organization for Economic Co-operation and Development is one of the last countries to do so. Meanwhile, concerns about the impact of coronavirus on the global economy have stirred markets around the world: stock prices and bond yields have plummeted. The continued spread of the new coronavirus has become one of the biggest threats to the global economy and financial markets.


2020 ◽  
Author(s):  
Sergi Trias-Llimós ◽  
Usama Bilal

The COVID-19 pandemic is causing substantial increases in mortality across populations, potentially causing stagnation or decline in life expectancy. We explored this idea by examining the impact of excess mortality linked to the COVID-19 crisis on life expectancy in the region of Madrid (Spain). Using data from the Daily Mortality Surveillance System (MoMo), we calculated excess mortality (death counts) for the weeks 10th to 14th in 2020 using data on expected and observed mortality, assuming no further excess mortality during the rest of the year. The expected annual mortality variation was +6%, +21% and +25% among men aged under 65, between 65 and 74 and over 75, respectively, and +5%, +13%, and 18% for women, respectively. This excess mortality during weeks 10th to 14th resulted in a life expectancy at birth decline of 1.6 years among men and 1.1 years among women. These estimates confirm that Madrid and other severely hit regions in the world may face substantial life expectancy declines.


Author(s):  
Israel Lorenzo-Felipe ◽  
Carlos A Blanco ◽  
Miguel Corona

Abstract Bees and some wasp species of the superfamily Apoidea pollinate most of the crops used for food and feed, producing different impacts on agricultural production. Despite the considerable importance of Apoidea, the relevance of this group’s impact on global crop production and human diets is controversial. To measure the pollination effect of these insects on crop production, factors such as the myriad of agricultural practices, different crop varieties, fluctuating pollinators’ densities, constantly changing environmental conditions, and demands for food items in a diverse diets must be considered. An ‘Apoidea impact factor’ (AIF), a value calculated taking into consideration the effect of this superfamily on enhancing crop production through pollination, the diversity of crops in a given area, the area planted by specific crops, and agricultural output, was calculated for 176 agricultural crops. Consistently with previous estimations, our results show that Apoidea have a direct impact on 66% of the 128 most important agricultural crops consumed in the world. However, the analysis of the impact of Apoidea on global production and human consumption revealed a different perspective: Apoidea pollination affects only 16% of the total tonnage output, 14% of the cultivated area, and 9% of the kilocalories consumed. Because 25 of the most cultivated crops in the world do not require, or are slightly affected by Apoidea pollination, and these plants grow in 84% of the world’s cropland, constituting 50% of the world’s diet, and 89% of the kilocalories consumed by peoples around of the world, the AIF at the world level is reduced to 11% of food consumed, and 6% of the kilocalories. The AIF, when applied to a small geographical scale, for example, the municipality or county level rather than country or state level, becomes more useful identifying areas where bees and wasps have greater impact in agriculture. In this report, we update the widely popular quote ‘One out of every three bites of food we eat is a result of pollinators like honey bees’ to a more accurate one: ‘nearly 5% of the food we eat, and about 10% of the calories we burn have a direct relationship with Apoidea pollination’. This new estimate does not diminish the need for pollinators for many of the world’s most nutritious foods, but merely suggests that these foods do not provide an extensive part of the human diet. The AIF can be used to identify specific areas where these pollinators have greater impact and direct conservation efforts directly into them. This approach can serve as a better estimate of the role of these pollinators in our food, using data-driven arguments.


Author(s):  
Vladimir Otrachshenko ◽  
Luis C. Nunes

Abstract Many Mediterranean-type climates around the world will face increased risks of wildfires as a consequence of climate change. In this study we consider the case of Portugal and estimate the impact of the increasing risk of forest fires on tourism. Using data for 278 municipalities for the 2000–2016 period, we find a considerable negative impact of burned areas on the number of tourist arrivals, both domestic and inbound. We go beyond the traditional impact analysis and provide predictions for 2030 and 2050. The estimated annual costs to the Portuguese economy due to the impact of burned areas in 2030 range between €17.03 and 24.18 million for domestic tourist arrivals and between €18.26 and 38.08 million for inbound ones. In 2050, those costs will increase at least fourfold. These findings underscore the importance of taking the forest fire risks into account when planning local investments.


2014 ◽  
Vol 5 (1) ◽  
pp. 35-50
Author(s):  
Yudai Arai ◽  
Tomoko Kajiyama ◽  
Noritomo Ouchi

In light of the rapid growth of social networks around the world, this study analyses the impact of social networks on the diffusion of products and demonstrates the effective way to diffuse products in the society where social networks play an important role. We construct a consumer behaviour model by multi-agent simulation taking the movie market as an example. After validating it by using data from 13 US movies, we conduct simulations. Our simulation results show that the impact of social networks on the diffusion differs according to the customers’ expectations and evaluation for a movie. We also demonstrate the effective weekly advertising budget allocations corresponding to the types of movies. We find that the difference of weekly advertising budget allocations gives greater impact on the diffusion with the growth of social networks. This paper provides firm’s managers with important suggestions for diffusion strategy considering the impact of social networks.


2021 ◽  
pp. 135406882110516
Author(s):  
Julie A VanDusky-Allen ◽  
Jaclyn J Kettler

In this analysis, we examine the effect of party-voter linkages on executive and legislative influence over policymaking in democracies throughout the world. We expect committees in legislatures with programmatic parties to have more power over the public policymaking process than committees in legislatures with clientelistic parties do. We also expect executives in countries with programmatic parties to have less power over the public policymaking process than executives in countries with clientelistic parties do. Using data from the Varieties of Democracy Dataset and controlling for relevant factors, we find support for our expectations. The results of this paper shed light on how party linkages to constituents can affect executive and legislative influence over policymaking.


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