scholarly journals Financial Liquidity as a Factor Determining the Economic Condition of Companies on the Capital Market in Relation to Bankruptcy Law in Poland

e-Finanse ◽  
2019 ◽  
Vol 15 (1) ◽  
pp. 1-9
Author(s):  
Monika Bolek ◽  
Agata Gniadkowska-Szymańska
Keyword(s):  
Capital Market ◽  
Economic Condition ◽  
Quadratic Functions ◽  
Bankruptcy Law ◽  
Economic Entity ◽  
Earnings Per Share ◽  
Financial Liquidity ◽  
The Impact ◽  
A Company ◽  
The Capital Market

AbstractThe aim of this article is to present financial liquidity as a factor affecting the economic condition of the companies on the capital market in relation to the amended Bankruptcy Law in Poland. A study was carried out to determine the impact of liquidity on the increase in earnings per share and return on assets, indicators can be used to assess the economic condition of a company. As a result, logit and quadratic functions were examined and the parameters of the models provided a verification of the hypothesis. As a result, it was found that the good economic situation of a company related to the increase in earnings per share and profitability is affected by the increasing cash efficiency of assets and the decreasing value of the current ratio. It can therefore be concluded that according to theory, conducting a more aggressive policy in the area of liquidity results in an increase in the value of an economic entity and, therefore, its good economic condition, but the effect of overly aggressive policies may influence solvency, which is defined by Bankruptcy Law.

scholarly journals Keefektifan Hubungan Tingkat Profitabilitas Perusahaan terhadap Harga Saham

2019 ◽  
Vol 3 (2) ◽  
pp. 109-118
Author(s):  
Fetri Setyo Liyundira
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Return On Investment ◽  
Statistical Test ◽  
Earnings Per Share ◽  
Relationship Of ◽  
The Relationship ◽  
Profitability Ratios ◽  
A Company ◽  
The Capital Market

Effectiveness of the Relationship Level of the Company's Profitability to Stock Prices. The capital market becomes and has a major economic function in the Indonesian economy, two parties, namely investors and publishers who provide several things facilitated by the capital market that provides facilities or vehicles. Profitability ratios used are indicators of Return On Investment (ROI) and Earnings Per Share (EPS) to stock prices. The sample used was 56 companies that have entered into several criteria and then submitted an application using SPPS with classic approval issued first for all variables, after collecting classic assumptions then performed a statistical test to determine the relationship of cause and effect. The results of the statistical test can be concluded that investors consider various things and one of them is looking at the value of Return on Investment (ROI). Profit will be generated by the use of increased company assets so that the value of the company can be increased, in accordance with rising stock prices to get a good response from investors. In addition to the profits generated, investors also benefit investors. It is wrong to only see profits because big or small will show the company's ability to distribute dividends to investors. From this it appears that a complicated transaction occurs, investors will receive dividends will be higher, it is seen getting a company.

scholarly journals The Innovation of Government Bonds in the Growth of an Emergent Capital Market

2021 ◽  
Vol 7 (1) ◽  
pp. 103
Author(s):  
Cordelia Onyinyechi Omodero ◽  
Philip Olasupo Alege
Keyword(s):  
Capital Market ◽  
Research Work ◽  
Government Bonds ◽  
Market Capitalization ◽  
Market Growth ◽  
Explanatory Variables ◽  
The Government ◽  
The Impact ◽  
Total Market ◽  
The Capital Market

The growth of an emerging capital market is necessary and requires all available resources and inputs from various sources to realize this objective. Several debates on government bonds’ contribution to Nigeria’s capital market developmental growth have ensued but have not triggered comprehensive studies in this area. The present research work seeks to close the breach by probing the impact of government bonds on developing the capital market in Nigeria from 2003–2019. We employ total market capitalization as the response variable to proxy the capital market, while various government bonds serve as the independent variables. The inflation rate moderates the predictor components. The research uses multiple regression technique to assess the explanatory variables’ impact on the total market capitalization. At the same time, diagnostic tests help guarantee the normality of the regression model’s data distribution and appropriateness. The findings reveal that the Federal Government of Nigeria’s (FGN) bond is statistically significant and positive in influencing Nigeria’s capital market growth. The other predictor variables are not found significant in this study. The study suggests that the Government should improve on the government bonds’ coupon, while still upholding the none default norm in paying interest and refunding principal to investors when due.

The world economy

1998 ◽  
Vol 165 ◽  
pp. 35-42
Author(s):  
Nigel Pain
Keyword(s):  
Capital Market ◽  
World Trade ◽  
Global Economy ◽  
World Economy ◽  
Domestic Demand ◽  
The World ◽  
Asian Economies ◽  
Trade Growth ◽  
The Impact ◽  
The Capital Market

Developments in the Asian economies have clearly begun to be felt in the wider global economy in recent months. It has always been expected that the OECD economies would be affected by the aftermath of the capital market turmoil last year, although the timing and magnitude of the impact was difficult to predict. Domestic demand in the affected Asian economies has proved much weaker than expected, with the effects magnified by a continued downturn in Japan. GDP fell by 5¾ per cent in Korea in the first quarter of this year and by 1¼ per cent in Japan. The aggregate volume of merchandise imports in Asia is expected to decline by around 5½ per cent this year, with falls of up to 25 per cent in countries such as Korea, Thailand and Indonesia. This largely accounts for our projected decline in world trade growth to under 6 per cent this year from an estimated 9¾ per cent in 1997.

scholarly journals Утицај рачуноводствених информација на одабир акција на тржишту капитала у Босни и Херцеговини // The impact of accounting information on share selection in the capital market in Bosnia and Herzegovina

2012 ◽  
Vol 10 (16) ◽  
pp. 247
Author(s):  
Миро Џакула
Keyword(s):  
Bosnia And Herzegovina ◽  
Capital Market ◽  
Accounting Information ◽  
Realistic Assessment ◽  
The Impact ◽  
A Share ◽  
The Capital Market

Резиме: Кључно питање које занима све инвеститоре, и велике и мале, јест како реално процијенити вриједности акција неког предузећа, те на темељу којих параметара одлучити треба ли продати или купити одређене акције. Међутим, нема поузданог начина да се тачно одреди потенцијална вриједност неке акције. Но, без обзира на то, уз помоћ неколико метода инвеститори прије улагања новца у било које предузеће математички покушавају израчунати колико је нека акција подцијењена или прецијењена.Summary: The key issue being of interest to all investors, both big and small ones, is how to make a realistic assessment of the value of some company’s shares and which parameters should be taken into account when making a decision whether to sell or buy certain shares. However, there is no reliable way of determining accurately the value of a share. Nevertheless, prior to investing money in any company, the investors can try, by applying some methods, to mathematically calculate whether the share concerned is undervalued or overvalued.

Client Relationships, Analyst Coverage, and Earnings Management

2021 ◽  
Author(s):  
Zhi Jin ◽  
Bingxuan Lin ◽  
Chen-Miao Lin
Keyword(s):  
Earnings Management ◽  
Financial Markets ◽  
Capital Market ◽  
Mutual Fund ◽  
Conflicts Of Interest ◽  
Analyst Coverage ◽  
Client Relationships ◽  
Client Pressure ◽  
The Impact ◽  
A Company

Financial analysts have two important roles in the capital market. In addition to their informational role, which has been widely studied, they play an important monitoring role. Similar to their informational role, their monitoring role might be negatively affected when they face conflicts of interest. Using a sample of Chinese firms, we show that if analysts are under pressure (i.e., housed in a brokerage firm where specific mutual funds hold large positions in a company covered by the analyst), their role in lowering the firm earnings management activities is significantly compromised. We find that the closer the business relationship between the mutual fund and the brokerage firm, the greater the firm earnings management. Our findings caution investors and regulators to heed the impact of client pressure on analysts' roles in financial markets.

Growth of Capital Market in Nepal: Impact on Capitalization, GDP and NEPSE Index

2020 ◽  
Vol 11 ◽  
pp. 66-83
Author(s):  
Dhan Raj Chalise
Keyword(s):  
Capital Market ◽  
Significant Contribution ◽  
Positive Impact ◽  
Stock Exchange ◽  
Secondary Data ◽  
Secondary Market ◽  
Financial Resources ◽  
Descriptive Research ◽  
The Impact ◽  
The Capital Market

The capital market plays an importance role in an economy and provides the opportunity to the investor for the mobilization and channelization of funds. Nepalese capital market is in growing and improving phase. The objective of this study is to analyze the evaluation of the existing status of the capital market in term of its composition of types of the capital market and to examine the impact of capital mobilization in Gross Domestic Product (GDP) and to examine the contribution of capital market in financial resources and GDP. Besides, the study examines the share transaction in Nepal Stock Exchange (NEPSE) and its impact on NEPSE Index. The study period of 2000/01 to 2018/19 has been used for study purposes. Through the use of descriptive research design, the trends of capital market development track after 2000/01 to present status has been presented. Secondary data are analyzed through the use of regression and other descriptive statists to convert the information into data. The result indicates that the ordinary shares in the primary capital market and market capitalization in the secondary market has significant contribution for the capital market in Nepal. Also, the study reveals that there is a significant and positive impact of capital mobilization on GDP and the number of share transactions on the NEPSE Index in the Nepalese capital market. Hence there is a significant contribution of the capital market for financial resources mobilization and GDP of Nepal. The study reports for modernization and systematization of the capital market need more optimal efforts from concerned stakeholders.

scholarly journals Influencing Efficiency of Tax Relief on the Capital Market: An Empirical Study of China Supply-Side Reform

2019 ◽  
Vol 11 (11) ◽  
pp. 3012
Author(s):  
Changjun Jiang ◽  
Sanggyun Na ◽  
Fengting Jiang
Keyword(s):  
Capital Market ◽  
Positive Impact ◽  
Institutional Innovation ◽  
Supply Side ◽  
Monetary Policies ◽  
Tax Relief ◽  
Policy Measures ◽  
The Impact ◽  
Positive Effect ◽  
The Capital Market

One of the primary tasks of supply-side reform is to promote the reform of fiscal and taxation systems. It is an important part of institutional innovation to coordinate fiscal and other reforms. From the perspective of the supply side, this paper discusses whether the adjustment of fiscal and monetary policies will have a positive impact on China’s capital market and economic growth. In this paper, a windows-EBM model is constructed to test the panel data of major economies between 2008 and 2016, discuss their impact on the efficiency of the capital market, and to make a comparative analysis on the strategies to improve the vitality of China’s capital market. We find that the impact of China’s macro policies on capital market efficiency during 2008-2016 shows a huge potential space for adjusting fiscal and monetary policies, because these input factors are obviously interchangeable in China’s supply-side reform. This is in line with the expected direction of China’s supply-side reform. This paper reveals the positive effect of supply-side reform on capital activity. Tax cuts and monetary policy measures are needed to balance capital markets and to ensure their active and sustainable development.

FOREIGN INVESTMENT AND THE POLITICAL ECONOMY OF INDONESIAN CAPITAL MARKET IN 2015-2016

2019 ◽  
Vol 7 (6) ◽  
pp. 340-348
Author(s):  
Faris Al-Fadhat ◽  
Mohammad Raihan Nadhir
Keyword(s):  
Political Economy ◽  
Interest Rates ◽  
Foreign Investment ◽  
Capital Market ◽  
International Political Economy ◽  
Stock Exchange ◽  
Economic Stability ◽  
Foreign Investors ◽  
The Impact ◽  
The Capital Market

Purpose of the study: This article examines the impact of foreign investment—especially through the capital market—towards the economic stability and strategic policy in Indonesia. Despite being a member of G20, a group of states with the world’s highest Gross Domestic Products, Indonesia is still a developing state whose need for investment to support economic growth is high. On the other side, Indonesia has a low capital accumulation rate due to low people’s savings which inhibits the development projects. Therefore, the government prioritizes the incoming flow of foreign investment. Methodology: This study applies the international political economy approach to provide critical analysis of Indonesian contemporary foreign investment, especially in the capital market. The data used is the investment activities through the Indonesia Stock Exchange during 2015-2016. Main Findings: It argues that Indonesia’s considerable dependence on investment has enabled foreign investors to play the capital flow to influence the national economic stability for their interests. Such influence was a result of two strategies: (i) the transaction domination in the capital market through the Indonesia Stock Exchange, and (ii) the alliance with financial actors in accessing inside information—which is not commonly owned by domestic investors. Implications/Applications: This study suggests that the politics of foreign investors has contributed towards the changes of government policies in the financial sectors to facilitate the process and to ensure the flow of foreign investment to Indonesia. Such policies include the government’s control of interest rates, fiscal policy, as well as currency stability through macroprudential regulation. Novelty/Originality: Essentially, the capital market is not politically neutral. It has been used by foreign investors to augment their interests by dominating transactions and building political alliances at the domestic level.

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