scholarly journals Impact of MiFID II on the Market Volatility—Analysis on Some Developed and Emerging European Stock Markets

Laws ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 55
Author(s):  
Marius Cristian Miloș
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Stock Markets ◽  
Negative Impact ◽  
Short Term ◽  
Emerging Stock Markets ◽  
Volatility Analysis ◽  
Stock Indexes ◽  
European Stock Markets ◽  
The Impact

The paper investigates whether the implementation of MiFID II, a packet of financial legislation applying broadly to European Union financial markets, has led to a change in the volatility of some European developed and emerging stock markets. We show that for the developed capital markets considered in the analysis, MiFID II did not lead to a decrease in the volatility of capital markets. On the contrary, for all analysis intervals considered (3 months, 6 months, 12 months, 18 months and 24 months), the impact on volatility is positive, with volatility increasing in the case of the FTSE 100, CAC40 and DAX stock indexes. There is a similar significant relationship for the Czech stock market, but only over the three-month interval. For the Polish and Romanian stock markets, which enforced MiFID II later, a negative impact of MiFID II on volatility could also be observed. In the Romanian market, MiFID II had a negative impact on volatility on the short-term horizon, while for the Polish market, the impact of MiFID II on volatility is noticeable on a longer term of 24 months.

COVID -19 and Indian Financial Markets: A Review

2020 ◽  
Vol 16 (02) ◽  
pp. 1-8
Author(s):  
Kamaldeep Kaur Sarna
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Stock Markets ◽  
Global Economy ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Management Strategies ◽  
The Impact

COVID-19 is aptly stated as a Black Swan event that has stifled the global economy. As coronavirus wreaked havoc, Gross Domestic Product (GDP) contracted globally, unemployment rate soared high, and economic recovery still seems a far-fetched dream. Most importantly, the pandemic has set up turbulence in the global financial markets and resulted in heightened risk elements (market risk, credit risk, bank runs etc.) across the globe. Such uncertainty and volatility has not been witnessed since the Global Financial Crisis of 2008. The spread of COVID-19 has largely eroded investors’ confidence as the stock markets neared lifetimes lows, bad loans spiked and investment values degraded. Due to this, many turned their backs on the risk-reward trade off and carted their money towards traditionally safer investments like gold. While the banking sector remains particularly vulnerable, central banks have provided extensive loan moratoriums and interest waivers. Overall, COVID-19 resulted in a short term negative impact on the financial markets in India, though it is making a way towards V-shaped recovery. In this context, the present paper attempts to identify and evaluate the impact of the pandemic on the financial markets in India. Relying on rich literature and live illustrations, the influence of COVID-19 is studied on the stock markets, banking and financial institutions, private equities, and debt funds. The paper covers several recommendations so as to bring stability in the financial markets. The suggestions include, but are not limited to, methods to regularly monitor results, establishing a robust mechanism for risk management, strategies to reduce Non-Performing Assets, continuous assessment of stress and crisis readiness of the financial institutions etc. The paper also emphasizes on enhancing the role of technology (Artificial Intelligence and Virtual/Augmented Reality) in the financial services sector to optimize the outcomes and set the path towards recovery.

scholarly journals The Impact of Government Debt Issuance on Short-Term interest rates in Indonesia

2009 ◽  
Vol 11 (3) ◽  
pp. 301
Author(s):  
Sri Adiningsih
Keyword(s):  
Fiscal Policy ◽  
Private Sector ◽  
Financial Markets ◽  
Interest Rates ◽  
Budget Deficit ◽  
Negative Impact ◽  
Government Debt ◽  
Crowding Out ◽  
Short Term ◽  
The Impact

This paper analyzes whether the expansionary fiscal policy funded by issuing debt instruments in financial markets will increase short-term interest rates. If  the expansionary fiscal policy increases interest rates, which decrease private spending especially investment, crowding out occurs. This is interesting because global economic crisis has encouraged many countries to run large budget deficits to stimulate the economy. Indonesia has also run budget deficit during this crisis and even in years before. The impact of such a policy can be significant because Indonesia’s debt market is still narrow and shallow. Therefore, its capability of absorbing the government debt instruments without influencing the private sector funding is limited. This study tests whether the crowding out occurs in Indonesia using a time series econometric model inspired by Cebula and Cuellar’s model. The Cointegration Regression and Error Correction Model (ECM) are used in this study. Monthly data from April 2000 to December 2008 are used for overnight real interbank call money interest rates, real net government bond issues in trading, real narrow money supply, real rate of one-month Certificate of Bank Indonesia, growth of Gross Domestic Product, and real net international capital flows. This empirical study shows that the crowding out problem occurred in Indonesia during the period. This indicates that financing budget deficit in Indonesia by issuing debt instruments in the financial markets has a negative impact on the private sector.

THE IMPACT OF TERRORISM ON FINANCIAL MARKETS: EVIDENCE FROM ASIA

2018 ◽  
Vol 63 (05) ◽  
pp. 1183-1204 ◽  
Author(s):  
FAHEEM ASLAM ◽  
AMIR RAFIQUE ◽  
ANEEL SALMAN ◽  
HYOUNG-GOO KANG ◽  
WAHBEEAH MOHTI
Keyword(s):  
Financial Markets ◽  
Stock Markets ◽  
Negative Impact ◽  
Target Type ◽  
Terrorist Attacks ◽  
Market Returns ◽  
Security Forces ◽  
Suicide Attacks ◽  
The Impact ◽  
Attack Type

This paper examines the impact of 410 terrorist attacks on the performance of five Asian stock markets. The empirical findings indicate that terrorism has a significant impact on the stock markets. Furthermore, the magnitude of these effects varies with respect to country, attack type, target type and severity of the attacks. In target type, terrorist attacks on business sector and security forces are particularly destructive for the stock markets. Likewise, in attack type, suicide attacks and bomb blasts particularly generate a significant downward movement in the stock markets. Furthermore, the more severe attacks have larger negative impact on market returns.

scholarly journals The Impact of Adoption of The XBRL on the Development of Stock Markets

2021 ◽  
Vol 16 (2) ◽  
pp. 95-127
Author(s):  
Wafa Sassi ◽  
◽  
Hakim Ben Othman ◽  
Khaled Hussainey ◽  
◽  
...  
Keyword(s):  
Empirical Evidence ◽  
Capital Markets ◽  
Stock Markets ◽  
Negative Impact ◽  
Panel Estimation ◽  
Financial Reports ◽  
Estimation Techniques ◽  
Business Reporting ◽  
The Impact

The paper examines the impact of adoption of the eXtensible Business Reporting Language (XBRL) on the development of stock markets using a large international sample. Our analysis was based on panel estimation techniques for 18 countries for a period of 20 years from 2000 to 2019. Our analysis provided empirical evidence that the adoption of the XBRL has a negative impact on the development of stock markets. This implies that strict policies are needed for the successful adoption of the XBRL and also a mechanism is needed to ensure that stakeholders understand the value of the information provided by the XBRL formatted financial reports. Keywords: XBRL, development of capital markets, panel estimation techniques, cross-countries study

scholarly journals Revisiting the Valuable Roles of Global Financial Assets for International Stock Markets: Quantile Coherence and Causality-in-Quantiles Approaches

Mathematics ◽  
2021 ◽  
Vol 9 (15) ◽  
pp. 1750
Author(s):  
Zhenghui Li ◽  
Zhiming Ao ◽  
Bin Mo
Keyword(s):  
Stock Markets ◽  
Predictive Ability ◽  
Point Of View ◽  
Financial Assets ◽  
Short Term ◽  
Predictive Capacity ◽  
High Quantiles ◽  
Stock Indexes ◽  
The Impact

We employ the quantile-coherency approach and causality-in-quantile method to revisit the roles of Bitcoin, U.S. dollar, crude oil and gold for USA, Chinese, UK, and Japanese stock markets. The main results show that the impact of global financial assets varies across different investment horizons and quantiles. We find that in most cases, the correlation between global financial assets and stock indexes is not significant or is weakly positive. From the perspective of investment horizons (frequency domain), the correlation in the short term is mostly manifested in Bitcoin, while in the medium and long term it is shifted to dollar assets. At the same time, the relationships are significantly higher in the medium and long term than in the short term. From the point of view of quantiles, it shows a weak positive correlation at the lower quantile. However, the correlation between the two is not significant at the median quantile. At the high quantiles, there is a weak negative linkage. According to the causality-in-quantiles approach results, in most cases global financial assets have different degrees of predictive capacity for the selected stock markets. Especially around the median quantile, the predictive ability was strongest.

scholarly journals The impact of the COVID-19 outbreak on Chinese-listed tourism stocks

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Wenmin Wu ◽  
Chien-Chiang Lee ◽  
Wenwu Xing ◽  
Shan-Ju Ho
Keyword(s):  
Stock Returns ◽  
Cultural Differences ◽  
Stock Price ◽  
Negative Impact ◽  
Tourism Industry ◽  
Regression Analyses ◽  
Short Term ◽  
Tourism Sector ◽  
Event Study Method ◽  
The Impact

AbstractThis research explored the effects of the coronavirus disease (COVID-19) outbreak on stock price movements of China’s tourism industry by using an event study method. The results showed that the crisis negatively impacted tourism sector stocks. Further quantile regression analyses supported the non-linear relationship between the government’s responses and stock returns. The results present that the resurgence of the virus in Beijing did bring about a short-term negative impact on the tourism industry. The empirical results can be used for future researchers to conduct a comparative study of cultural differences concerning government responses to the COVID-19.

The impact of sentiment on emerging stock markets

2021 ◽  
Author(s):  
Abhinav Anand ◽  
Sankarshan Basu ◽  
Jalaj Pathak ◽  
Ashok Thampy
Keyword(s):  
Stock Markets ◽  
Emerging Stock Markets ◽  
The Impact

scholarly journals PSIKOEDUKASI MENGENAI DAMPAK BULLYING DAN CARA MENINGKATKAN SELF-ESTEEM PADA REMAJA

2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Grace Amin
Keyword(s):  
Young People ◽  
Negative Impact ◽  
Self Esteem ◽  
Religious Communities ◽  
Short Term ◽  
Aggressive Action ◽  
Effects Of Bullying ◽  
Anxiety Depression ◽  
The Impact

Bullying is deliberate aggressive action, using an imbalance of strength physically or mentally by hurting physical, verbal, or emotional / psychological forms repeatedly. In the last decade, cases of bullying in Indonesia continue to increase and if not handled properly will increasingly have a negative impact on the development of the children of the nation's next generation. Bullying does not only affect children who are bullied but can also affect children who bully, children who witness bullying. Some of the effects of bullying include anxiety, depression, and low self-esteem. The purpose of community engagement is to socialize the impact of bullying and how to increase self-esteem to adolescents. Through psychoeducation programs in adolescents such as schools and teenagers religious communities in the Cikarang - Bekasi region, young people gain an in-depth understanding of bullying, its effects and how to increase their confidence. Through this psychoeducation, teenagers understand the understanding, types and effects of bullying both short term and long term so they promise to resist bullying starting from themselves. Teenagers learn that humans are social beings who need each other. They learn about the meaning of diversity and bhineka tunggal ika and try to implement it in their next lives by respecting the differences in their environment. These teenagers learn to respect themselves more, see the positive things that God has given them. They try to always believe in themselves that they are perfect and valuable beings in God's eyes so that even though the environment around them may not appreciate, they can still see positive things in themselvesABSTRAK:Bullying adalah tindakan agresif yang disengaja, menggunakan ketidakseimbangan kekuatan secara fisik atau mental dengan cara menyakiti bentuk fisik, verbal, atau emosional/ psikologis secara berulang – ulang. Dalam satu decade terakhir, kasus bullying di Indonesia terus meningkat dan bila tidak ditangani dengan baik akan semakin berdampak negative bagi perkembangan anak – anak generasi penerus bangsa. Tindakan bullying tidak hanya berdampak pada anak yang di-bully tetapi juga dapat berdampak pada anak yang mem-bully, anak yang menyaksikan bullying. Beberapa dampak bullying diantaranya kecemasan, depresi, serta rendahnya harga diri (self-esteem). Tujuan dari pengabdian kepada masyarakat ini adalah untuk mensosialisasikan dampak bullying serta cara meningkatkan self-esteem kepada para remaja. Melalui program psikoedukasi di lingkungan remaja seperti sekolah maupun komunitas keagamaan remaja wilayah Cikarang – Bekasi, para remaja mendapatkan pemahaman mendalam mengenai bullying, dampaknya serta bagaimana cara meningkatkan kepercayaan diri mereka. Melalui psikoedukasi ini, para remaja memahami pengertian, jenis serta dampak bullying baik jangka pendek maupun jangka panjang sehingga mereka berjanji untuk bersikap menolak bullying mulai dari diri mereka sendiri. Para remaja belajar bahwa manusia adalah mahluk social yang saling membutuhkan. Mereka belajar tentang makna keberagaman dan Bhineka Tunggal Ika serta berusaha mengimplementasikannya dalam kehidupan mereka selanjutnya dengan cara menghargai perbedaan yang ada di lingkungannya. Remaja ini belajar untuk lebih menghargai diri mereka, melihat hal positif yang telah diberikan Tuhan kepada mereka. Mereka mencoba untuk selalu menanamkan dalam diri bahwa mereka adalah mahluk yang sempurna dan berharga di mata Tuhan sehingga walaupun lingkungan di sekitar mereka mungkin tidak menghargai, mereka tetap dapat melihat hal positif dalam diri mereka.

scholarly journals The changing landscape of economy: social and technological progress in explaining the informational efficiency of capital markets

2020 ◽  
Vol 14 (1) ◽  
pp. 940-952
Author(s):  
Iuliana Ursu
Keyword(s):  
Market Efficiency ◽  
Capital Markets ◽  
Technological Progress ◽  
Bayesian Model Averaging ◽  
Negative Impact ◽  
Efficient Market Hypothesis ◽  
Social Progress ◽  
Informational Efficiency ◽  
Market Mechanisms ◽  
The Impact

AbstractIn today’s ever-changing landscape of economy, one of the fundamental problems remains whether market mechanisms are functioning in an efficient way, and which are the variables impacting those levels of efficiency. The main objectives of the present paper are to contribute to a better understanding of market mechanisms, by testing the Efficient market hypothesis on its weak form at a macroeconomic level, and to assess the impact of technological and social progress, measured through different variables, on markets informational efficiency. We use an adapted version of L. Kristoufek si M. Vosvrda (L. Kristoufek, M. Vosvrda, 2013, 184) methodology for Efficiency Index, based on long term memory (using 2 estimators), fractal dimension (using 11 estimators), and entropy (estimated through the approximate entropy), in order to assess the levels of efficiency for 20 market indices from both developed and emerging or frontier economies, from the Eurasia region. Further on, by using the Bayesian Model Averaging (BMA), we study the impact of technological and social progress on markets informational efficiency. Main results of the study reveal the existence of a market dynamics characterized by areas with distinctive levels of “informational efficiency”, within both developed and emerging economies, encompassing a non-negligible link between past and present, persistence or anti-persistence, and a high data complexity. Moreover, while studying the relationship between market efficiency and social and technological progress, we observe that variables such as Government Effectiveness, or Control of Corruption, have a positive impact on the levels of efficiency of capital markets, while most of the technological progress estimators (amongst which Computer, communications and other services (% of commercial service exports), or Individuals using the Internet (% of population)), have a negative impact, translated into a decrease of informational market efficiency on the short run (the rise of high frequency trading).

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