scholarly journals Diagnostic of Innovations and Volatility Persistence in Emerging Markets

2020 ◽  
Vol 4 (2) ◽  
pp. 95
Author(s):  
Widad Metadjer ◽  
Seyf Eddine Benbakhti ◽  
Hadjer Boulila
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Negative Correlation ◽  
Capital Market ◽  
Debt Crisis ◽  
Portfolio Diversification ◽  
Diversification Strategy ◽  
Market Prices ◽  
Market Makers ◽  
Volatility Persistence

This paper aims to analyse the shocks and volatility persistence of both Islamic and conventional financial market, and the nature of the correlation between the two markets. The study uses Bivariate BEKK-GARCH(1,1) model in the examination of the shocks and volatility based on the daily prices of Dubai Islamic Capital Market (Sukuk index) and conventional Stock Market (DFM index).As a result, it documents that both Sukuk and stock market indices are affected by their own news and shows volatility persistence over the study period.  The study also finds a negative correlation between the Sukuk and Stock market prices during the Dubai debt crisis which indicates that Islamic bonds are good portfolio diversifier. Our study seeks to define the nature of the correlation between the Sukuk market and the stock market using daily prices, unlike other studies that use returns. In addition, our empirical results might be valuable for investors and market makers to ensure a good portfolio diversification strategy.

scholarly journals Measuring Co-Movements and Linkages between Nigeria and the UAE Stock Exchanges: Is there Opportunity for Portfolio Building?

2020 ◽  
Vol 1 (2) ◽  
pp. 106-122
Author(s):  
Shafiu Abdullahi
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Market Integration ◽  
Stock Exchange ◽  
Portfolio Diversification ◽  
Empirical Literature ◽  
Stock Exchanges ◽  
Financial Contagion ◽  
Stock Market Integration ◽  
Short Run

Purpose: The main objective of this study is to examine the relationship between Nigerian Stock Exchange and Dubai stock exchange with the aim of finding out the direction of movements between their respective indices. Approach/Methodology/Design: The methodology adopted for the analysis is ARDL cointegration model and the Generalized Method of Moment (GMM). This is because of their known efficiency in detecting patterns between variables. Findings: The result of the short-run analysis using GMM shows that there is existence of short-run causality between the Dubai financial market (DFM) and the Nigerian stock exchange (NSE). Thus, for investors looking for short- run arbitrage opportunity between the markets, they shall look elsewhere. But, the result of bound testing has shown lack of cointegration between the two markets. This is a sign of existence of opportunities for portfolio diversification between Nigeria stock exchange and Dubai financial market, since the two markets are not cointegrated in the long-run. Practical Implications: The study helps bridge the empirical literature gap in stock market integration and portfolio diversification with reference to the Nigeria and UAE. It will, therefore, guide local and foreign investors with interest in Nigeria and UAE Stock Exchanges. It will also guide Nigerian and UAE policy makers to understand the market better, especially as it concerns financial contagion. Originality/value: This study provides further evidence on stock market integration in emerging markets. New researches shall adopt different methodology such as use of volatility tracking models to measure volatility linkage between the markets.

scholarly journals Sailing through the COVID-19 Crisis by Using AI for Financial Market Predictions

2020 ◽  
Vol 2020 ◽  
pp. 1-18
Author(s):  
Gagan Deep Sharma ◽  
Burak Erkut ◽  
Mansi Jain ◽  
Tuğberk Kaya ◽  
Mandeep Mahendru ◽  
...  
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Future Research ◽  
Market Prices ◽  
Stock Market Returns ◽  
Extant Literature ◽  
Stock Market Forecasting ◽  
The Neural Network ◽  
Drying Up ◽  
The Times

The outbreak of COVID-19 has brought the world to an unprecedented position where financial and mental resources are drying up. Livelihoods are being lost, and it is becoming tough to save lives. These are the times to think of unprecedented solutions to the financial challenges being faced. Artificial intelligence (AI) has provided a fresh approach to finance through its implementation in the prediction of financial market prices by promising more generalizable results for stock market forecasting. Immense literature has attempted to apply AI and machine learning for predicting stock market returns and volatilities. The research on the applications of AI in finance lacks a consolidated overview of different research directions, findings, methodological approaches, and contributions. Therefore, there is a need to consolidate the extant literature in this upcoming field to consolidate the findings, identify the research gaps in the existing literature, and set a research agenda for future researchers. This paper addresses this need by synthesizing the extant literature in the form of a systematic review for addressing the use of AI in stock market predictions and interpreting the results in a narrative review. The gap formed through this article is the use of a combination of AI as a subject with the neural network as another area and stock market forecasting as another theme, and it will pave the way for future research studies. The analyses help highlight four important gaps in the existing literature on the subject.

External Factors of Big Business Transformation in Russia

2005 ◽  
pp. 72-89 ◽  
Author(s):  
Ya. Pappe ◽  
Ya. Galukhina
Keyword(s):  
Financial Market ◽  
Capital Market ◽  
Business Groups ◽  
External Factors ◽  
Big Business ◽  
Business Transformation ◽  
Global Standards ◽  
The World ◽  
Principal Subject

The paper is devoted to the role of the global financial market in the development of Russian big business. It proves that terms and standards posed by this market as well as opportunities it offers determine major changes in Russian big business in the last three years. The article examines why Russian companies go abroad to attract capital and provides data, which indicate the scope of this phenomenon. It stresses the effects of Russian big business’s interaction with the world capital market, including the modification of the principal subject of Russian big business from integrated business groups to companies and the changes in companies’ behavior: they gradually move away from the so-called Russian specifics and adopt global standards.

Determinants of Trading Decision: An Experiential Examination

GIS Business ◽  
2018 ◽  
Vol 13 (1) ◽  
pp. 1-9
Author(s):  
Gunjan Sharma ◽  
Tarika Singh ◽  
Suvijna Awasthi
Keyword(s):  
Stock Market ◽  
Capital Markets ◽  
Capital Market ◽  
Capital Mobility ◽  
Influential Factors ◽  
Herd Behavior ◽  
Human Beings ◽  
The Past ◽  
The Government ◽  
Indian Stock Market

In the midst of increasing globalization, the past two decades have observed huge inflow of outside capital in the shape of direct and portfolio investment. The increase in capital mobility is due to contact between the different economies across the globe. The growing liberalization in the capital market leads to the growth of various financial products and services. Over the past decade, the Indian capital market has witnessed numerous changes in the direction of developing the capital markets more robust. With the growing Indian economy, the larger inflow of funds has been fetched into the capital markets. The government is continuously working on investor’s education in order to increase retail participation in the Indian stock market. The habits of the risk-averse middle class have been changing where these investors started participating in the Indian stock market. It is an explored fact that human beings are irrational and considering this fact becomes imperative to investigate factors that influence the trading decisions. In this research, ‘an attempt has been made to investigate various factors that affect the individual trading decision’. The data has been collected from various stockbroking firms and from clients of those stockbroking firms their opinions were recorded by means of a questionnaire. Data collected through the structured questionnaire, 33 questions were prepared which was given to the 330 respondents on the basis of convenience sampling out of which 220 individuals filled questionnaire, the total of 200 questionnaires was included in the study after eliminating the incomplete questionnaire. Various factors are being explored from the literature and then with the help of factor analysis some of the most influential factors have been explored. Factors like overconfidence, optimism, cognitive bias, herd behavior, advisory effect, and idealism are the factors which influenced the trading decision of the investors the most. Such kind of a study is contributing in the area of behavioral finance as a trading decision is an important aspect while investing in the stock market. And this kind of study would be helping and assisting financial advisors to strategies for their clients in making the right allocation and also the policy maker and market regulators to come up with better reforms for the Indian stock markets.

A Critical Analysis of Selected Public and Private Mutual Fund Schemes in India

2019 ◽  
Vol 118 (8) ◽  
pp. 28-34
Author(s):  
Dr. V. Murali Krishna ◽  
Dr T. Hima Bindu ◽  
Dr. Ravikumar Gunakala
Keyword(s):  
Mutual Funds ◽  
Capital Market ◽  
Mutual Fund ◽  
Portfolio Diversification ◽  
Financial Intermediaries ◽  
Public And Private ◽  
Fund Managers ◽  
Fixed Base ◽  
Banking Institutions ◽  
Different Levels

Mutual Fund Industry is one of the emerged dominant financial intermediaries in Indian Capital Market. The main objective of investing in a mutual fund is to diversify risk. Though the mutual fund invests in diversified portfolio, the fund managers take different levels of risk in order to achieve the schemes objectives. Mutual funds allow portfolio diversification and relative risk management through collection of funds from the savers/investors, the same investing in equity and debt stocks. This type of invested funds is managed by professional experts called as fund managers Funds are categorized as income should fixed base in India are a kind of mutual fund which makes investment in debt securities that have been issued to the corporate, banking institutions and to government in general

Gestión de los intangibles del capital humano. Política de retribuciones y sus efectos. El caso de los grupos de empresa cotizados españoles

Oikos ◽  
2015 ◽  
Vol 14 (30) ◽  
pp. 49
Author(s):  
Esteban Pérez Calderón ◽  
Patricia Milanés Montero ◽  
Herenia Gutiérrez Ponce
Keyword(s):  
Human Capital ◽  
Stock Market ◽  
Capital Market ◽  
Return On Investment ◽  
Employee Productivity ◽  
Human Capital Management ◽  
Remuneration Policy ◽  
The One ◽  
Capital Humano ◽  
Los Grupos

RESUMENEn los últimos años, las empresas han venido realizando grandes inversiones en generosos mecanismos de retribución y compensación a sus empleados con la esperanza de alcanzar un doble objetivo. Por un lado, que estas actuaciones sean reconocidas por el mercado de valores y, por otro, esperando un mayor retorno de la inversión realizada en su personal. En el presente trabajo comprobamos cómo están repercutiendo estas inversiones sobre la productividad de los empleados (resultados económicos) y si son premiadas por el mercado de capitales (resultados financieros). Nuestro estudio se centra en los grupos de empresa cotizados españoles.Palabras clave: gestión, intangibles, capital humano, política retributiva. Intangibles of human capital management. Remuneration policy and its effects. The case of the spanish groups listed companies.ABSTRACTIn recent years, companies have been investing heavily in generous remuneration and compensation models for its employees hope to achieve two objectives. On the one hand, that these actions are recognized by the stock market and, second, expecting a greater return on investment in their human capital. In this paper we focus on to see how these investments are having an impact on employee productivity (economic results) and if they are rewarded by the capital market (financial results). Our study focuses on Spanish groups listed companies.Keywords: management, intangibles, human capital, remuneration policy.

Macroeconomic Determinants of Stock Market Prices in Nepal

2020 ◽  
Vol 2 (1) ◽  
pp. 56-65
Author(s):  
Bhim Prasad Panta
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Money Supply ◽  
Developing Economies ◽  
Annual Data ◽  
Economic Variables ◽  
Market Prices ◽  
Ardl Model ◽  
Long Run

Background: Stock market plays a crucial role in the financial system of a country. It can be viewed as a channel through which resources are properly channelized. It enables the governments and industry to raise long-term capital for financing new projects. The stock markets of developing economies are likely to be sensitive to various macro-economic factors such as GDP, imports, exports, exchange rates etc., when there is high demand on financial products, as a constituent of financial market, ultimately stock market needs to develop. Many factors can be a signal to stock market participants to expect a higher or lower return when investing in stock and one of these factors are macroeconomic variables and thus, macro-economic variables tend to effect on stock market development. Objective: This study examines the linkage between stock market prices (NEPSE index) and five macro-economic variables, namely; real GDP, broad money supply, interest rate, inflation, and exchange rate using ARDL model and to explain the behavior of the Nepal Stock Exchange Index. Methods: The ECM which is delivered from ARDL model through simple linear transformation to integrate short run adjustments with long run equilibrium without losing long run information. The analysis has been done by using 25 years' annual data from 1994 to 2019. Findings: The result suggests that the fluctuation of Nepse Index in long run is strongly associated with broad money supply, interest rate, inflation, and exchange rate. Conclusion: Though Nepalese stock market is in primitive stage, broad money supply, interest rate, inflation and exchange rate are major factors affecting stock market price of Nepal. So, policies and strategies should be made and directed taking these in to consideration. Implication: The findings of research can be helpful to understand the behavior of Nepalese stock market and develop policies for market stabilization.

Tools for Investing in the “Green” Economy: World Experience and Prospects in Russia

2020 ◽  
pp. 46-50
Author(s):  
N.I. Chovgan ◽  
◽  
O.S. Akupiyan ◽  
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Capital Market ◽  
Capital Flows ◽  
Green Economy ◽  
Financial Resources ◽  
Insurance Markets ◽  
Market Mechanisms ◽  
Research Areas ◽  
Reproduction Process

The development of the modern capital market and innovative technologies, including in the financial sector, creates the need to expand the research areas of the reproduction process and individual mechanisms that support it. Financial institutions are constantly required participants in responsible financing. Investors’ expectations regarding investments in environmental production and technologies reorient capital flows to these areas, and schemes for attracting financial resources and distributing risks in the process of implementing the principles of sustainable development are considered as unified. The article analyzes transformations and reviews the existing experience of forming appropriate mechanisms, justifies the functioning of the most effective ones. Among the investment and financial mechanisms of the “green” economy, the most important are budget investment mechanisms and financial market mechanisms. The mechanisms of the stock, credit and insurance markets are identified as components of the financial market mechanisms.

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