scholarly journals Rights Offering and Its Effect on Share Price Movement: A Study of Commercial Banks

2018 ◽  
Vol 11 (1) ◽  
pp. 1-13
Author(s):  
Hari Prasad Pathak ◽  
Sweta Gupta
Keyword(s):  
Commercial Banks ◽  
Stock Price ◽  
Banking Sector ◽  
Price Change ◽  
Share Price ◽  
Coefficient Of Determination ◽  
Price Movement ◽  
Announcement Date ◽  
The Individual ◽  
The Right

This paper examines the effect of rights share issue on share price movement in the banking sector covering the period 2007/08 to 2016/17. In order to find out the share price movement in different selected points of time, pre and post right issue and price relatives were calculated considering the price of 90 days before the right announcement date as the beginning index. Five different points of time were selected to observe the share price movements assuming the announcement date as the reference point of time. Stock price data were obtained from the website of NEPSE. The paper uses correlation coefficient to examine whether the overall market movement has any relationship with the individual share price change. Coefficient of determination is used to identify what proportion of the variation in the share price is explained by the event of right share issue. The result shows that right offering announcements have the signaling effect, but it is negative. The share price of Nepalese commercial banks decreases after the announcement of right in spite of the increase in the market index in the corresponding period. The results highlight the information asymmetry behavior which induces a negative change in share price after the rights announcements. The implication of the result is that investors can anticipate the nature of change in share price after rights issue announcements and develop strategic plans to improve the trading activity.

scholarly journals Impact of Right Share Issue on Share Price of Commercial Banks in Nepal

2021 ◽  
Vol 4 (i) ◽  
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Price Change ◽  
Share Price ◽  
Coefficient Of Determination ◽  
Price Movement ◽  
Relative Index ◽  
Share Prices ◽  
Secondary Sources ◽  
Strategic Plans

This study has examined the effect of issue of right share on share price movement in the banking sector using share price and price relative as the predictors of share price movement. Banking sub-index and index relative of different periods were used for analysis. Five different periods of time were selected to observe the share price movement considering the announcement date as the reference point of time. Based on the secondary sources of data, a correctional analysis was administered to examine whether the share price and price relative (banking index) has any relationship with the share price change in case of Nepalese commercial banks. Coefficient of determination and probable error were used to find how much percentage of the variation in the share price could be explained by the occurrence of right share issue and likewise, whether or not the relationship was significant. The results reveal that right share announcements have the signaling effect on share price movement. The share prices and banking indices of selected banks have decreased after the announcement of right share. The results suggest that the information irregularity behavior tempts a negative change in share price after the announcement of rights share. The implication of the results is that investors can forestall the nature of change in share price after rights issue announcement and develop strategic plans to expand the trading activity. Keywords: NCC Bank., Right announcement, Right share issue, Price relative, Index relative.

Effect Of Leverage, Inflation And GDP To Share Price Pt. Astra Otoparts Tbk.

ProBank ◽  
2018 ◽  
Vol 3 (2) ◽  
pp. 17-21
Author(s):  
Heriyanta Budi Utama ◽  
Florianus Dimas Gunurdya Putra Wardana
Keyword(s):  
Gross Domestic Product ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Share Price ◽  
Domestic Product ◽  
Coefficient Of Determination ◽  
Test Results ◽  
Purposive Sampling

The purpose of this study was to obtain empirical evidence about the effect of leverage, inflation and Gross Domestic Product (GDP) of the share price at PT. Astra Autopart, Tbk. companies in Indonesia Stock Exchange in 2011-2015. The sampling technique in this study using a purposive sampling. With the technique of purposive  sampling, all the members of the research samples by criteria. Samples that meet the criteria are used research data. Then followed the classic assumption test and test hypotheses by linear regression. The results of this study demonstrate the regression results in regression equation that Y = 2605,424 + 1561,550 X1 + 2,338 X2 + 38,994X3. T test results showed that the leverage anda GDP (Gross Domestic Product) is positive and significant effect on stock prices, while inflation is not positive and significant effect on stock prices. F test results showed that jointly leverage variables, inflation and GDP variables affecting the stock price significantly. The test results R2 (coefficient of determination) found that the variable leverage, inflation and GDP able to explain 35,4% of the stock price variable, while the remaining 64,6% is explained by other variables.Keywords: leverage, inflation, GDP, and the share priceThe purpose of this study was to obtain empirical evidence about the effect of leverage, inflation and Gross Domestic Product (GDP) of the share price at PT. Astra Autopart, Tbk. companies in Indonesia Stock Exchange in 2011-2015.The sampling technique in this study using a purposive sampling. With the technique of purposive  sampling, all the members of the research samples by criteria. Samples that meet the criteria are used research data. Then followed the classic assumption test and test hypotheses by linear regression.The results of this study demonstrate the regression results in regression equation that Y = 2605,424 + 1561,550 X1 + 2,338 X2 + 38,994X3. T test results showed that the leverage anda GDP (Gross Domestic Product) is positive and significant effect on stock prices, while inflation is not positive and significant effect on stock prices. F test results showed that jointly leverage variables, inflation and GDP variables affecting the stock price significantly. The test results R2 (coefficient of determination) found that the variable leverage, inflation and GDP able to explain 35,4% of the stock price variable, while the remaining 64,6% is explained by other variables.Keywords: leverage, inflation, GDP, and the share price

scholarly journals The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya

2017 ◽  
Vol 8 (4) ◽  
pp. 167 ◽  
Author(s):  
Gift Kimonge Dzombo ◽  
James M. Kilika ◽  
James Maingi
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Exploratory Research ◽  
Electronic Banking ◽  
Economic Activities ◽  
Significance Level ◽  
Negative Effect ◽  
The Individual

The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.

scholarly journals Fundamentals of Stock Price in Nepalese commercial banks

2019 ◽  
Vol 4 ◽  
pp. 83-98
Author(s):  
Prem Prasad Silwal ◽  
Samrina Napit
Keyword(s):  
Commercial Banks ◽  
Stock Price ◽  
Stock Exchange ◽  
Market Price ◽  
Negative Relationship ◽  
Influential Factor ◽  
Share Price ◽  
Cross Sectional ◽  
Book Value ◽  
Price Earnings Ratio

The aim of this study is to ascertain the determinants of the stock market price in Nepalese commercial banks for the period of 2065/66 to 2074/75. It is based on pooled cross-sectional data of ten banks for 10 years whose stocks are listed in Nepal stock exchange. The study employed correlational and causal comparative research design and result reveals that book value per share, price earnings ratio, return on equity have positive relationship with stock price. Dividend yield has positive but minimum influence on the price of the stock whereas size has negative relationship and is statistically insignificant with stock price. Further, it reveals that book value per share is a most influential factor that determines stock price in Nepal.

scholarly journals Impacts of bonus issue on stock price in Nepalese Equity Market

2017 ◽  
Vol 2 ◽  
pp. 106-117
Author(s):  
Raju Kumar Rai ◽  
Prem Silwal
Keyword(s):  
Commercial Banks ◽  
Stock Price ◽  
Equity Markets ◽  
Equity Market ◽  
Matched Pairs ◽  
Cross Sectional ◽  
Price Movement ◽  
Share Prices ◽  
Price Reactions ◽  
Made In

The aim of this study is to examine the effect of bonus issue on the price of equity share. The study is based on pooled cross-sectional data of 10 commercial banks whose stocks are listed in NEPSE and traded over the market. An attempt has been made in this study, to analyze the behaviour of the share prices in the Nepalese equity market towards the announcements of bonus issue, taking into account the price movements of the stocks listed in NEPSE. In order to assess the stock price reactions to bonus issue in the Nepalese equity market, Wilcoxon Matched Pairs Test has been applied in this study. The research has revealed that there is a significant impact on the price movement of shares in accordance with the bonus issue in the Nepalese equity market which is consistent to other foremost global equity markets.

scholarly journals Pengaruh Kurs, Suku Bunga, dan Dividen Pershare Terhadap Harga Saham Pada Sektor Perbankan yang Terdaftar di Bursa Efek Indonesia Tahun 2013– 2017

2018 ◽  
Vol 10 (1) ◽  
pp. 21-33
Author(s):  
Atika Riziqyani ◽  
Gunistiyo ◽  
Niken Wahyu C
Keyword(s):  
Regression Analysis ◽  
Exchange Rate ◽  
Interest Rate ◽  
Linear Regression ◽  
Stock Prices ◽  
Stock Price ◽  
Banking Sector ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Share Price

The effect of exchange rate, interest rate and dividend of share price on banking sector which is listed in Indonesia Stock Exchange year 2013-2017. Essay. Tegal: Faculty of Economics and Business Universitas Pancasakti Tegal,2018. The purpose of this study is to determine the ability of investors in considering stock prices in the banking sector in 2013-2017. Hypothesis in this research is 1) exchange rate effect on stock price. 2) interest rates affect the stock price. 3) dividend pershare effect on stock price. 4) exchange rate, interest rate and dividend pershare simultaneously affect the stock price. The population used in this study is a banking company that publishes stock prices listed on the Indonesia Stock Exchange in 2013-2017. The sample in this research are 21 banking companies. With technique of sampling using purposive sampling. The data in this research is quantitative data. Sources of data in this study are secondary sources obtained from the share price of an annual banking company published in Indonesia Stock Exchange period 2013-2017. Data collection techniques using documentation techniques. Data analysis method using descriptive statistic, classical assumption test, simple linear regression analysis, multiple linear regression analysis and coefficient of determination, then obtained the result of research that the exchange rate does not have a significant effect on stock prices, the interest rate does not significantly influence the stock price, against stock price, exchange rate, interest rate and dividend pershare have significant effect to stock price.

scholarly journals PROSPEK SAHAM PERBANKAN DI INDONESIA

2020 ◽  
Vol 9 (2) ◽  
pp. 175
Author(s):  
Iwan Kusmayadi ◽  
Muhammad Ahyar ◽  
Muhdin Muhdin ◽  
G. A. Oktaryani
Keyword(s):  
Data Collection ◽  
Stock Price ◽  
Banking Sector ◽  
Market Performance ◽  
Sampling Technique ◽  
Share Price ◽  
Sample Survey ◽  
Annual Growth Rate ◽  
Earning Growth ◽  
Stock Market Performance

The focus of this research is to determine stocks provide the highest profit (gain opportunity) for investors. Investors will compare opportunities in choosing investment in the banking sector by comparing the combination of long-term growth rates rather than bank fundamentals with stock valuations. The population in this study is banking stocks included in the LQ45 index. The method of data collection uses a sample survey with a purposive sampling technique with the criteria of banking stocks with the largest market capitalization and has a high level of liquidity in trading values, and has consistently been included in the LQ45 index for the last 10 years (2008 to 2017). The number of samples selected were 4 banks consisting of Bank Mandiri (BMRI), Bank BRI (BBRI), Bank BCA (BBCA), and Bank BNI (BBNI). Data collection techniques through documentation, as well as quantitative data sourced from secondary data. Data analysis techniques by comparing the growth of fundamental performance such as Return On Assets (ROA), Return On Equity (ROE), Debt to Equity (DER), Capital Addequacy Ratio (CAR), and Non Performing Loans (NPL). Whereas market performance through Share Price, Earning Per Share (EPS), Price Earning Ratio (PER), Price to Earning Growth (PEG), and Dividend Yield by using compounded annual growth rate (CAGR). Then compare the value of the Margin Of Safety (MOS) Average in stock valuation analysis. The results of this study indicate that the financial performance of Bank BCA (BBCA) is superior to other banks according to DER, CAR and NPL. BRI is the best bank in generating profitability (ROA and ROE) compared to 3 other banks. Meanwhile, according to the stock market performance based on the order of the greatest opportunity level, Bank BNI has the best prospects because it has the largest EPS growth, the lowest stock price valuation, and sufficient MOS value, then ranked below it respectively are Bank Mandiri, Bank BRI, and Bank BCA .Keywords:Financial performance, market performance, and stock value

scholarly journals Stock Price Contagion Effects of Low-Quality Audits at the Individual Audit Partner Level

2018 ◽  
Vol 38 (2) ◽  
pp. 151-178 ◽  
Author(s):  
Ferdinand A. Gul ◽  
Chee Yeow Lim ◽  
Kun Wang ◽  
Yanping Xu
Keyword(s):  
Financial Reporting ◽  
Stock Price ◽  
Personal Characteristics ◽  
Time Lapse ◽  
Share Price ◽  
Cross Sectional ◽  
Contagion Effects ◽  
Audit Firms ◽  
Stock Market Valuation ◽  
The Individual

SUMMARY We use Chinese audit partner data to show that partners associated with financial reporting fraud induce share price declines among non-fraudulent firms audited by the same audit partners. In cross-sectional analyses, we find that share price declines are more pronounced when low-quality partners (LQPs) failed to issue modified audit opinions during the period in question and when the LQPs were from one of the Top 10 audit firms. Additional analyses show that investors impose larger penalties on contagion firms when fraudulent firms are larger and the time lapse between sanction and fraud commitment is shorter. The personal characteristics of LQPs (except gender) do not cause a difference in market reaction to contagion firms. Overall, our results speak to the importance of audit partner identity to stock market valuation. JEL Classifications: M41; M42; M48.

Free Cash Flow as a Determinant of Performance and Stock Price Movement in Multinational Energy Companies

2016 ◽  
Vol 3 (1) ◽  
pp. 11-29 ◽  
Author(s):  
Ahmed Alalawi ◽  
Gagan Kukreja ◽  
Keshav Gupta
Keyword(s):  
Cash Flow ◽  
Stock Price ◽  
Free Cash Flow ◽  
Share Price ◽  
Positive Relation ◽  
Investment Opportunity ◽  
Price Movement ◽  
Investment Opportunities ◽  
High Return ◽  
Energy Companies

We used the Free Cash Flow (FCF) formula to test and determine the performance of these firms, along with testing the correlation with price movement. Previous Studies showed that Free Cash flow has positive correlation with taking investment opportunities, while negative Free Cash flow represent distressed period for the firm. Questions addressed in the article is (1) whether FCF can determine the energy firm’s performance and stock price movement, (2) whether high FCF triggers investing in high return investments, and (3) whether low or negative FCF leads to financially distressed period. The results are consistent with high Free Cash flow will result in greater investment opportunity while low or negative Free Cash flow will result in distressed period for the firm. In addition, the results showed positive relation between Free Cash flow and share price movement.

Sign in / Sign up

Export Citation Format

Share Document