Market capitalization, bank lending and manufacturing firms’ output : an empirical evidence from Nigeria

Stock market is alternative place to bank lending for company’s finance and contributor to economic development. Baltic States is market, which traditionally is perceived as one, however it is comprised of 3 separate stock markets. Research aim was to conduct comparative analysis of stock market development performance post-recession in the Baltic States.. In order to perform analysis, number of listed companies, their market capitalization and structure in Baltic States were analyzed and also compared to main economic indicators structure in 2008-2018 6 months. The main research methods are: analysis, synthesis, the logical construction method, the induction and deduction methods, as well as time series analysis. Authors have determined main stock market performance indicators and compared stock market indicators structure with Baltic region’s economic structure. Research results indicates that number of listed companies had increased only in Estonia, also market capitalization there had experienced their value to more than double in analyzed period. In Lithuania number of companies had declined, while market capitalization the growth was slower when compared to in Estonia, while more linear. In turn, stock market capitalization and number of listed companies in Latvia were declining in 2008-2018 6 months. Overall number of listed companies in Baltic States was decreasing, while their market capitalization is increasing, but still is only 60% of value it was in pre-recession year 2007. In Estonia and in Lithuania average listed companies are larger in size, when compared to in Latvia. Size of average listed companies on stock market in Estonia and in Lithuania more than doubled in size, while in Latvia it showed insignificant growth. Stock market indicators’ structure had insignificant deviations from the main economic indicator structure in 2008, while in 6 months 2018 dynamics in Latvia stock market parameters had dropped in the structure among all 3 Baltic States. Overall, in Latvia stock market is lagging behind, when compared to one in Estonia and in Lithuania in analyzed period, thus all 3 Baltic States has had asymmetrical recovery and development speed post-recession.

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Does SFAS No. 151 Trigger More Overproduction?

Journal of Management Accounting Research ◽

10.2308/jmar-50652 ◽

2013 ◽

Vol 26 (1) ◽

pp. 121-143 ◽

Cited By ~ 4

Author(s):

Chaur-Shiuh Young ◽

Chih-Wei Peng ◽

Chin-Chen Chien ◽

Liu-Ching Tsai

Keyword(s):

Empirical Evidence ◽

Manufacturing Firms ◽

Production Costs ◽

Production Level ◽

Accruals Management ◽

Excess Production

ABSTRACT This study explores whether SFAS No. 151 affects firms' production-level decisions. Although the change from ARB No. 43 (FASB 1953) to SFAS No. 151 (FASB 2004) seems trivial at first glance, using a sample of U.S. manufacturing firms from the Compustat database (SIC 2, 3) for the period 2003–2008, we document that abnormal production costs significantly increased after SFAS No. 151 became effective in 2005. The empirical evidence substantiates our hypothesis that the explicit expensing and reporting of idle facilities, as stipulated in SFAS No. 151, inadvertently further induces opportunism for excess production. Moreover, we find that firms that have limited options to indulge in accruals management, and those that have pressures to boost income, will have higher excess production after the adoption of SFAS No. 151. Supplementary analyses indicate that our results are robust with regard to controlling for sales manipulation, and to alternative explanations for excess production as well as alternative overproduction measures.

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TESTING RATIONAL EXPECTATIONS HYPOTHESIS IN THE MANUFACTURING SECTOR IN MALAYSIA

Journal of Business Economics and Management ◽

10.3846/16111699.2011.631743 ◽

2013 ◽

Vol 14 (2) ◽

pp. 303-316 ◽

Cited By ~ 3

Author(s):

Chin-Hong Puah ◽

Shirly Siew-Ling Wong ◽

Venus Khim-Sen Liew

Keyword(s):

Empirical Evidence ◽

Real World ◽

Rational Expectations ◽

Manufacturing Sector ◽

Relevant Information ◽

Manufacturing Firms ◽

Capital Expenditures ◽

Expectations Hypothesis ◽

The World ◽

Economic Thinking

The application of rational expectations hypothesis (REH) in macroeconomic research has marked a revolution in economic thinking, and the magnitude of its impact on the world of economics is undeniably significant. However, the extent to which REH applies in real-world settings is ambiguous even though the concept of REH is well established in economics literature because empirical evidence from previous studies is clearly mixed. This study used survey data on gross revenue and capital expenditures to examine the validity of REH in Malaysian manufacturing business expectations. Empirical results indicated that the manufacturers’ expectations are being irrationally constructed in terms of gross revenue predictions but comply with REH properties in Muth's sense in the case of capital expenditures forecasts. Therefore, manufacturing firms in Malaysia are encouraged to incorporate more relevant information into their gross revenue predictions to provide more accurate and realistic forecasting.

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