scholarly journals Key Fundamental Factors and Long-run Price Changes in an Emerging Market—A Case Study of Karachi Stock Exchange (KSE)

2002 ◽  
Vol 41 (4II) ◽  
pp. 517-533 ◽  
Author(s):  
Mohammad Irfan Chaudhary ◽  
Mohammed Nishat
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Emerging Market ◽  
Share Price ◽  
Relevant Factor ◽  
Direct Relation ◽  
Price Changes ◽  
Important Indicator ◽  
Share Prices ◽  
Long Run

Share prices are the most important indicator readily available to the investors for their decision to invest or not in a particular share. Theories suggest that share price changes are associated with changes in fundamental variables which are relevant for share valuation like payout ratio, dividend yield, capital structure, earnings size of the firm and its growth, [Wilcox (1984); Rappoport (1986); Downs (1991)]. Linter (1956) linked dividend changes to earnings while Shapiro valuation model (1962) showed dividend streams discounted by the difference in discount rate and growth in dividend should be equal to share price. This predicts direct relation between pay out ratio and the price-earning multiple. Conversely it means that there is an inverse relation between pay out ratio and share price changes. Several eventbased studies established direct relation between share price changes and either earnings or dividend changes [Ball and Brown (1968); Baskin (1989)]. Sharpe (1964) and Hamada (1972) suggested direct relation between share price changes and capital structure. Beaver, Kettler and Sholes (1970) showed that firms appear to pay less of their earnings if they have higher earning volatility. This suggests payout ratio as relevant factor for share price changes. Investigations of share price changes appear to yield evidence that changes in fundamental variable(s) should jointly bring about changes in share prices both in developed and emerging markets. However, the actual fundamental factors found to be relevant may vary from market to market. For example, changes in asset growth of firms are significant in the case of Japanese shares while earnings appear to be universally a relevant factor [Ariff, et al. (1994)]. However, it is widely agreed that a set of fundamental variables as suggested by individual theories is no doubt relevant as possible factors affecting share price changes in the short and the long-run [Ariff and Khan (2000)].

Effect of Profitability, Company Size, Capital Structure, and Liquidity Risk on Firm Value of Indonesian Banks

2021 ◽  
Vol 4 (1) ◽  
pp. 14-27
Author(s):  
Fenty Fauziah ◽  
Rafiqoh Rafiqoh
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sample Selection ◽  
Liquidity Risk ◽  
Share Price ◽  
Company Size ◽  
The Public ◽  
Retained Earnings

The main objective of any firm is to maximize shareholder's wealth, which can be seen from firm value.  This study aims to analyze and explain the effect of profitability, company size, capital structure, and liquidity risk on firm value banking companies in Indonesia. The population of this study is all banking companies listed on the Indonesia Stock Exchange, with an observation period of 2017-2018. The sample selection using a purposive sampling method. Data have both cross-section and time variation. Analysis and hypothesis testing were carried out by using a linear regression analysis using Eviews 11. The results showed that investors viewed that the company's overall profits from its business activities could increase its share price. The capital structure owned by the public relatively small, which meant that the company could provide a source of funds from within the company in the form of the owner's capital or retained earnings. Funds obtained from loans, if they were not followed by the ability to manage funds or were not channeled back to the community, would cause interest expenses and destroy profits. This condition results in investors selling their shares. Investors in making investment decisions paid attention to one indicator at a time and paid attention to all the factors that determined the company's value.

scholarly journals The Determinan Kinerja Keuangan Perusahaan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia

2021 ◽  
Vol 4 (2) ◽  
pp. 455-463
Author(s):  
Jusmarni Amir
Keyword(s):  
Capital Structure ◽  
Capital Market ◽  
Stock Price ◽  
Stock Exchange ◽  
Regression Method ◽  
Financial Information ◽  
Share Price ◽  
Linear Regression Method ◽  
Multiple Linear Regression Method ◽  
Food And Beverage

Stocks are currently a popular investment product among investors. Stocks that are of interest to investors are stocks that have a high selling value because the stock price is a very important factor to pay attention to and indicators are used to measure the welfare of shareholders. The higher the share price, the higher the value of the company and vice versa. However, investing in stocks in the capital market is also filled with an element of uncertainty or risk, this is because investors do not know with certainty the results they will get from their investments. Company specific financial information is one of the important internal company factors that can influence investors to invest. The research aims to analyse the effect of Capital Structure, liquidity, and profitability on stock price. Samples used in this study are food and beverage companies listed in the Indonesian Stock Exchange during 2016-2018 periods. Multiple linear regression method used to anlyse the effect of DER,CAR,  and NPM on Stock Price. The results showed that DER and CAR have not significant effect on Stock Price. NPM have a significant effect on Stock Price. Keywords: Capital Structure, liquidity, Profitability, Stock Price

Evaluation Markers and Mitigators in Analyst Reports in Light of Market Response to Stock Recommendations

2018 ◽  
Vol 55 (3) ◽  
pp. 310-337 ◽  
Author(s):  
Karol Marek Klimczak ◽  
Marta Dynel
Keyword(s):  
Stock Exchange ◽  
Emerging Market ◽  
Writing Skills ◽  
Professional Writing ◽  
Specific Group ◽  
Stock Recommendations ◽  
Share Prices ◽  
Analyst Behavior ◽  
Warsaw Stock Exchange

Professionals and individuals who invest in equity markets rely on financial analysts’ recommendations and reports to decide on what to invest in and when to trade. This study examines the role of two groups of communication strategies, evaluation markers and mitigators, in establishing analysts’ credibility. The sample consists of 80 reports written in Polish for companies listed on the Warsaw Stock Exchange in Poland. In this emerging market setting, where credibility is challenged by uncertainty, analysts deploy various strategies depending on the recommendation they make: “buy,” “hold,” or “sell” shares. The findings point toward a specific group of mitigators, namely subjectivization, as a means of communicating expert opinion. Regression results reveal that investors’ reaction to the publication of a recommendation to “hold” or “sell” shares, measured based on the changes in share prices, is stronger when subjectivization is used in a report. The findings carry implications for research into analyst behavior and for the development of professional writing skills.

Pengaruh Profitabilitas, Likuiditas dan Solvabilitas terhadap Harga Saham pada Sektor Transportasi yang Terdaftar di BEI Tahun 2014-2018

2021 ◽  
Vol 11 (1) ◽  
pp. 41-53
Author(s):  
Popy Marsela ◽  
One Yantri
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Share Price ◽  
Significant Positive Effect ◽  
Share Prices ◽  
Negative Effect ◽  
Equity Ratio ◽  
Independent Variable ◽  
Positive Effect ◽  
Method Approach

This study aims to determine the effect of Profitability, Liquidity and Solvability on the share prices of sector Transportation on the Indonesia Stock Exchange (IDX) period 2014-2018. The Share Prices as the dependent variable is proxied by Closing Price. The independent variables in this Profitability, Liquidity and Solvability. The Profitability is proxied by Return On Asset (ROA), Liquidity is proxied by Current Ration (CR), Solvability is proxied by Debt to Equity Ratio (DER). The research method uses a quantitative method approach. The results of this experiment showed that the independent variable Profitability has a significant positive effect on stock prices with a significance of 0.000 < 0.00. Liquidity has not a significant negative effect on stock prices with a significance value of 0.181 > 0.005. Solvability has a significant positive effect on stock prices with a significance of 0.001 < 0.005. Profitability, Liquidity, and Solvability together significantly influence the Share Price with a significance value of 0.000 < 0.005.

Bombay Stock Exchange of India

2017 ◽  
pp. 181-212
Author(s):  
Sachin Kamley ◽  
Shailesh Jaloree ◽  
R. S. Thakur
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Efficient Market Hypothesis ◽  
Share Price ◽  
Share Prices ◽  
Election Results ◽  
Combination Of Methods ◽  
Prediction Techniques ◽  
A Company ◽  
Financial Issues

Stock market nature is considered to be dynamic and susceptible to quick changes because it depends on various factors like share price, fundamental variables like P/E ratio, dividend yield etc. election results, rumors etc. Now a day's prediction is an important process which determines the future worth of a company. The successful prediction brings motivation and awareness in stock community as well as economic growth of the country. In past various theories and methods like Efficient Market Hypothesis (EMH), Random Walk Theory, fundamental and technical analyses have been proposed. These methods or combination of methods have not got as much success even yet because these methods are very complex and time consuming and performed well on short data. These days stock market users mostly rely on intelligent trading system which would be help them to predict share prices based on various situations and conditions. Data mining is a broad area and also supports various business intelligence techniques. It has mastery to raise various financial issues like buying/selling security, bond analysis, contract analyses etc. in this study various prediction techniques like linear regression, multiple regression, association rule mining, clustering, neural network have been proposed and their significant performances will be compared by Bombay Stock Exchange (BSE) data.

Effect of Dividend Policy on Stock Price Volatility in Nigeria Stock Exchange

2019 ◽  
Vol 9 (2) ◽  
pp. 219
Author(s):  
Felix Ebun Araoye ◽  
Akinola Michael Aruwaji ◽  
Emmanuel OlusuyiAjayi
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Price Volatility ◽  
Share Price ◽  
Dividend Payout ◽  
Share Prices ◽  
Duration Effect

This paper seeks to determine the effect of dividend policy and dividend payment on share price volatility in Nigeria. Several literatures have showed evidence that dividend policy vary inversely proportional with share price volatility with duration effect. The study used data from the actively trading companies listed in the Nigeria Securities Exchange for a period of ten (10) years from 2005–2014. The estimation is based on panel data analysis between dividend policy measures (dividend payout, dividend per share, earnings after tax, dividend declared and number of share) and Share price volatility. The findings from the random effects regression results showed dividend per share is the major determinants of share price volatility in NSE (β = 0.6870, ρ<0.05). Dividend payout ratio negatively affect share price volatility (β =0.612, ρ>0.05) and earnings after tax negatively affect share price volatility (β =0.038, ρ>0.05).Thus, the higher the payout ratio the less the share price volatility, and the higher the earnings after tax lower the share price volatility. In conclusion, dividend per share has positive effect and inclusive relationship with market share prices. It is recommended that firms should try and improve on their financial performance that will enable consistent increase in the dividend per share for positive impact on market value.

Long-Run Performance of Emerging Market ADRs: Evidence From Issues Listed on the New York Stock Exchange From 1990 Through 2009

2013 ◽  
Vol 5 (1) ◽  
pp. 41-54 ◽  
Author(s):  
Mark Schaub
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Emerging Market ◽  
New York Stock Exchange ◽  
Holding Period ◽  
Market Index ◽  
Long Run ◽  
York Stock Exchange ◽  
Market Sample ◽  
Depository Receipts

This article examines the three-year monthly aftermarket returns of emerging market firm equities traded on the New York Stock Exchange as American Depository Receipts (ADRs). Excess return results are broken down by the type of issue (IPO versus SEO) and the date of issue (those issued in the 1990s versus the 2000s). The total emerging market sample of 193 ADRs significantly outperformed the S&P 500 index by 8.5 percent for the three-year holding period; however, those issued before 2000 underperformed the index by nearly 18 percent while those listed after January 1, 2000 outperformed the index by nearly 41 percent. SEOs outperformed the market index by 32 percent while IPOs underperformed by 2 percent. Both portfolios (IPOs and SEOs) significantly outperformed the market for issues that were listed in the 2000s.

scholarly journals Impact of managerial ownership on capital structure: a survey of Turkish firms

2008 ◽  
Vol 5 (2) ◽  
pp. 8-14
Author(s):  
Özgür Arslan
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Emerging Market ◽  
Debt Maturity ◽  
Managerial Ownership ◽  
Insider Ownership ◽  
Istanbul Stock Exchange ◽  
Dividend Smoothing ◽  
The Relationship ◽  
Considerable Support

This paper investigates the relationship between insider ownership and capital structure decisions made by managers for an emerging market. Therefore, we survey managers of 103 firms listed in the Istanbul Stock Exchange (ISE). Our findings lend considerable support to our expectation that leverage, debt maturity and dividend issues reduce ability of managers to divert resources from value maximisation. However the same monitoring and disciplining tax is not observed for stock issues. Also, our findings document that managers of firms listed in the ISE do not opt to dividend smoothing policy. Finally, the results are in line with our expectation that, the more willing are the managers to reduce asymmetric information between them and shareholders, the higher their ownership level in firms.

scholarly journals Efficient Market Hypothesis and Market Anomalies of LQ 45 Index in Indonesia Stock Exchange

2019 ◽  
Vol 3 (2) ◽  
pp. 107
Author(s):  
Helma Malini
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Weak Form ◽  
Efficient Market Hypothesis ◽  
Share Price ◽  
Exchange Market ◽  
Efficient Market ◽  
Market Anomalies ◽  
Share Prices ◽  
Year Effect

The paper attempts to investigate the validity of the Efficient Market Hypothesis and the existence of calendar effect on Indonesia Stock Exchange Market. Initially, this paper discusses types of EMH also the literature available regarding this topic. The sample of research is twenty one securities listed in LQ 45 Index on the Indonesia Stock Exchange Market (IDX), this paper applies non parametric tests which are Run test, Kruskal-Wallis test, Mann-Whitney test  parametric test which are series correlation test, One-way Anova test and independent t-test two sample. Based on the results of the test of this paper, it can be concluded that Weak Form Efficient Market exists in LQ 45 Index of IDX while Day of the Week Effect and Month of the Year Effect are not found to exist in LQ 45 Index of IDX. In conclusion, it is observed that the effect of stock prices for the sample companies on future prices is very meager and an investor cannot reap profits by using the historical share price data as the current share prices already reflect the effect of past share prices data.

scholarly journals THE EFFECT OF THE FINANCIAL RATIOS ON THE SHARE PRICE OF INSURANCE COMPANIES LISTED IN THE IRAQI STOCK EXCHANGE MARKET USING MULTIPLE REGRESSION ANALYSIS (APPLIED RESEARCH IN THE IRAQI STOCK EXCHANGE MARKET)

2018 ◽  
Author(s):  
Othman Amin
Keyword(s):  
Multiple Regression ◽  
Stock Exchange ◽  
Multiple Regression Model ◽  
Share Price ◽  
Financial Ratios ◽  
Insurance Companies ◽  
Exchange Market ◽  
Share Prices ◽  
Research Population ◽  
The Relationship

<p><em>This research aims to identify the most important financial ratios affecting the share price of insurance companies listed in the Iraqi Stock Exchange Market (ISEM) during the period 2006-2015, and to indicate which ratios are more influential than others on share prices. The research population which consisted of (4 companies) is taken from insurance companies listed in the Iraqi Stock Exchange Market. The research sample consisted of one of these companies, representing  25% of the research population. In the statistical analysis a multiple regression model was used to determine the relationship between the independent and the dependent variables and the results of this study showed that there is a statistically significant relationship and effect between some financial ratios and the share price. The study gave a general background on the financial markets and the Iraqi Stock Exchange Market in particular.What characterizes this study from previous ones is demonstrating the effect of the financial ratios on the share price in the Iraqi setting for insurance companies listed in the Iraqi Stock Exchange using the multiple regression method.</em></p>

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