scholarly journals Causal Impact of Government Policy in Stock Market of Nepal

2019 ◽  
Vol 22 (1) ◽  
pp. 69-78
Author(s):  
Bhoj Raj Ojha
Keyword(s):  
Government Policy ◽  
Stock Prices ◽  
Efficient Market Hypothesis ◽  
Stock Index ◽  
Market Model ◽  
New Information ◽  
Independent Variable ◽  
Causal Impact ◽  
Using Data ◽  
The Relationship

This study is directly related to the semi-strong form of market efficiency. The efficient market hypothesis suggests that stock markets are “informationally efficient”. That is, any new information relevant to the market is spontaneously reflected in the stock prices. A consequence of this hypothesis is that past prices cannot have any predictive power for future prices once the current prices have been used as an explanatory variable. In other words the change in future prices depends only on arrival of new information that was unpredictable today hence it is based on surprise information. It examines the relationship between fiscal policy and stock index in Nepal with using data from 2003 to 2019. This research use market model to determine the statistical relationship. Overall the independent variable government policy poses significant relationship with stock index in Nepal.

scholarly journals Causal Impact of Government Policy in Stock Market of Nepal

2019 ◽  
Vol 22 (2) ◽  
pp. 69-78
Author(s):  
Bhoj Raj Ojha
Keyword(s):  
Government Policy ◽  
Stock Prices ◽  
Efficient Market Hypothesis ◽  
Stock Index ◽  
Market Model ◽  
New Information ◽  
Independent Variable ◽  
Causal Impact ◽  
Using Data ◽  
The Relationship

This study is directly related to the semi-strong form of market efficiency. The efficient market hypothesis suggests that stock markets are “informationally efficient”. That is, any new information relevant to the market is spontaneously reflected in the stock prices. A consequence of this hypothesis is that past prices cannot have any predictive power for future prices once the current prices have been used as an explanatory variable. In other words the change in future prices depends only on arrival of new information that was unpredictable today hence it is based on surprise information. It examines the relationship between fiscal policy and stock index in Nepal with using data from 2003 to 2019. This research use market model to determine the statistical relationship. Overall the independent variable government policy poses significant relationship with stock index in Nepal.

Dividend Changes as Predictors of Future Profitability

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Fakhrul Hasan
Keyword(s):  
Information Content ◽  
Stock Prices ◽  
Special Interest ◽  
Dividend Policy ◽  
Future Earnings ◽  
New Information ◽  
Dividend Increases ◽  
Using Data ◽  
The Uk ◽  
Dividend Tax

This study investigates “the information content of dividends hypothesis” using data on UK firms from 1990-2015. Dividends act as an important conveyor of information. Dividend changes may trigger changes in stock prices because they may convey new information about the firm’s future earnings and profitability. Why do companies pay dividends (or analogously why are stockholders interested in receiving dividends), given that it is well known that dividends are often taxed heavily? This question is of special interest in the UK, where the dividend tax is higher than the capital gain tax. Previous research has used a number of dividend policy theories to explain the dividend policy puzzle. We carry out several estimations and find out that contrary to some other studies, there is no evidence that dividend increases (decreases) provide information about the future profitability or earnings of UK firms.

scholarly journals Do Company Related Newspaper Articles Have an Impact on the Share Prices? The Case of the German Market

2019 ◽  
Vol 11 (3) ◽  
pp. 32
Author(s):  
Jyoti Gupta ◽  
Benjamin Graubner
Keyword(s):  
Stock Prices ◽  
Data Set ◽  
German Market ◽  
Share Prices ◽  
Thomson Reuters ◽  
New Information ◽  
Java Program ◽  
Using Data ◽  
The Impact ◽  
Newspaper Articles

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. 

scholarly journals Relationship between Foreign Exchange Rate and Stock Price of Commercial Joint Stock Banks: Evidence from Vietnam

2016 ◽  
Vol 8 (7) ◽  
pp. 193 ◽  
Author(s):  
Tran Mong Uyen Ngan
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Foreign Exchange Rate ◽  
Series Data ◽  
Causality Test ◽  
Using Data ◽  
The Relationship

The relationship between foreign exchange rate and stock price is one popular topic that is interested by not only board managers of banks but also stock investors. By using data about foreign exchange rate between Vietnam Dong (VND) and United State Dollar (USD), stock prices data of nine commercial joint stock banks in Vietnam from the first day of 2013 to the last day of 2015, this paper try to answer the question “Does foreign exchange rate impact on stock price and vice verse?”. Applying Dickey Fuller test and Var Granger Causality test for the time series data, the results show that there is an impact of foreign exchange rate on stock price. Although the fluctuation in foreign exchange rate VND/USD causes the change in stock prices of commercial joint stock banks in Vietnam, however, the vector of this impact is not clearly. On the opposite way, the change in stock price does not cause the change in foreign exchange rate, this relation is one-way relation.

scholarly journals Testing Semi-strong Form Efficiency of Stock Market

2001 ◽  
Vol 40 (4II) ◽  
pp. 651-674 ◽  
Author(s):  
Salman Syed Ali ◽  
Khalid Mustafa
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Stock Markets ◽  
Efficient Market Hypothesis ◽  
Seasonal Effects ◽  
Efficient Market ◽  
New Information ◽  
Empirical Regularities ◽  
Day Of The Week ◽  
Stock Traders

The efficient market hypothesis suggests that stock markets are “informationally efficient”. That is, any new information relevant to the market is spontaneously reflected in the stock prices. A consequence of this hypothesis is that past prices cannot have any predictive power for future prices once the current prices have been used as an explanatory variable. In other words the change in future prices depends only on arrival of new information that was unpredictable today hence it is based on surprise information. Another consequence of this hypothesis is that arbitrage opportunities are wiped out instantaneously. Empirical tests of the efficient market hypothesis actually test for these consequences in various ways. Some of them have been summarised in earlier chapters. These tests generally could not conclusively accept the random-walk hypothesis of stock returns even when GARCH effects were accounted for. Many studies have found empirical regularities that are contrary to the efficient market hypothesis. For example, the monthly, weekly and daily returns on stocks tend to exhibit discernable patterns, such as seasonal affects, month of the year affect, day of the week affect, hourly affect etc. In case of Pakistan’s stock markets too such affects are identified. Such as the Ramadan affect [see Hussain and Uppal (1999)], seasonal effects and day of the week affect. Further, the wide spread use of “technical analysis” among stock traders and their ability to predict to some extent the direction of movements in the prices of individual stocks over medium term testifies to the existence of patterns and seasonal trends.

Determining the Importance of Domestic Firms on Stock Market Performance in Terms of Financial Marketing

2020 ◽  
pp. 269-286 ◽  
Author(s):  
İrfan Ersin
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Exchange ◽  
Panel Cointegration ◽  
Stock Index ◽  
Causality Analysis ◽  
Domestic Firms ◽  
Market Values ◽  
Stock Market Performance ◽  
The Relationship

This chapter examines the relationship between stock market value of domestic firms traded in stock markets in OECD countries and stock index for 1990-2018 period. As a result of Pedroni Panel Cointegration and Dumitrescu-Hurlin Panel Causality Analysis, there is a relationship between the market values of domestic firms traded on the stock exchange and the stock index. In addition, a two-way causality relationship was found. This situation indicates that this relationship is very powerful. It can be understood that adding domestic companies to the stock market has a significant effect on the stock prices and this will attract foreign investors to enter the market.

The Role of Main Microeconomic Factors on the Stock Prices of Selected Swiss Companies

e-Finanse ◽  
2020 ◽  
Vol 16 (1) ◽  
pp. 67-74
Author(s):  
Tomáš Pražák
Keyword(s):  
Stock Prices ◽  
Generalized Method Of Moments ◽  
Financial Statements ◽  
Efficient Market Hypothesis ◽  
Relevant Information ◽  
Annual Data ◽  
Theoretical Approaches ◽  
The Individual ◽  
The Relationship

AbstractThis paper examines the role of main microeconomic factors on the stock prices of selected Swiss companies listed on the Six Swiss Exchange. Two basic theoretical approaches and interpretations of this relationship are frequently used. The efficient market hypothesis (Fama, 1970) assumes that stock prices already contain all the relevant information and the theory of arbitration (Ross, 1976, or Chen et al., 1986). The microeconomic factors are based on the financial situation in companies. Financial ratios, taken from the financial statements of the individual companies, are used for the analysis. In general, the study confirmed that profitability and debt ratios are the most important business factors from the prospective of impact on stock prices. The relationship between the observed variables is explored using panel regression analysis. The generalized method of moments for constructing a regression model is used. The sample period of the dataset is composed of annual data from 2006 to 2015.

scholarly journals The Effects of Earnings Per Share and Firm Size to Stock Price LQ45 Company Listed in Indonesian Securities

2018 ◽  
Vol 7 (4.9) ◽  
pp. 247
Author(s):  
Arma Yuliza
Keyword(s):  
Regression Analysis ◽  
Firm Size ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Stock Index ◽  
Earnings Per Share ◽  
The Relationship

This study was conducted by the firm that included the stock index of IDX (Indonesian stock exchange) consist of the 45 best stocks (LQ45 index companies) that are listed on the Indonesian Securities. This study aims to assess the effect of earnings per share and the firm size on stock prices. The purpose of this study is also to prove that the size of the firm can moderate the relationship between earnings per share and stock prices. By conducting a regression analysis, this study gives evidence that earnings per share and firm size have a significant effect on stock prices. The size of the firm is also able to moderate the relationship between earnings per share and stock prices. The results of this study gave evidence that profit and the size of the company can provide important information for investors in making decisions. 

scholarly journals Pengaruh Rasio Keuangan Terhadap Harga Saham Syariah Dengan Earning Per Share Sebagai Variabel Moderating

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Muhammad Yusuf ◽  
Jefriyanto Jefriyanto
Keyword(s):  
Regression Analysis ◽  
Data Analysis ◽  
Stock Prices ◽  
Total Population ◽  
Stock Exchange ◽  
Secondary Data ◽  
Analysis Techniques ◽  
Independent Variable ◽  
The Relationship ◽  
Interaction Test

This research is using secondary data obtained from the official website of IDX and Investing. Total population in this study are all JII members companies from 2016-2018 and the number of samples in this study are 18 companies that are members of the Indonesia Stock Exchange, especially in the Jakarta Islamic Index from 2016-2018. Data analysis techniques used in this study are the classic assumption test and the Moderated Regression Analysis (MRA) analysis test or commonly called the interaction test. Based on the results of the research conducted obtained the results of variables that have partial significant effect are DER, DPR, ROA, PBV while other variables such as PER, CR, NPM and DYR has no effect on sharia stock prices. Then for the moderation variable (Earning Per Share) proved able to moderate each independent variable and this moderating variable can strengthen the relationship between the independent variable (X) to the dependent (Y).

How Government Created and Shaped the U.S. Nursing Home Industry

2019 ◽  
Vol 46 (6) ◽  
pp. 881-897
Author(s):  
Leslie King
Keyword(s):  
Nursing Home ◽  
Government Policy ◽  
Government Agency ◽  
Congressional Hearings ◽  
Medicaid Policy ◽  
Using Data ◽  
The 1960S ◽  
The Relationship ◽  
The U.S ◽  
Nursing Home Industry

Beginning in the 1960s, U.S. government policy largely created, and subsequently facilitated the corporatization of, a powerful, multi-billion dollar nursing home industry. Using data from trade publications, government agency reports, Congressional hearings, newspaper reports and existing scholarly research, I chart the relationship between the state and the U.S. nursing home industry over four time periods to reveal how, at different moments, government policy contributed to first the creation, then the corporatization and consolidation of the industry. I argue that the trajectory of Medicare and Medicaid policy is not wholly neoliberal but neither should it be considered progressive.

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