scholarly journals ESG Ratings and Stock Performance during the COVID-19 Crisis

2021 ◽  
Vol 13 (13) ◽  
pp. 7133
Author(s):  
Nils Engelhardt ◽  
Jens Ekkenga ◽  
Peter Posch
Keyword(s):  
Abnormal Returns ◽  
Stock Volatility ◽  
Stock Performance ◽  
The Social ◽  
Security Regulations ◽  
Is Value

We investigate the association between Environmental, Social, and Governance (ESG) ratings and stock performance during the COVID-19 crisis. Although there is mixed evidence in the literature whether ESG is valuable in times of crisis, we find high ESG-rated European firms to be associated with higher abnormal returns and lower stock volatility. After decomposing ESG into its separate components, we find the social score to be the predominant driver of our results. Further, we argue that ESG is value-enhancing in low-trust countries, and in countries with poorer security regulations and where lower disclosure standards prevail.

scholarly journals Rethinking entrepreneurship and family business research in Honduras: a closer look in times of crisis

2020 ◽  
Vol 9 (1) ◽  
pp. 28-38
Author(s):  
Allan Discua
Keyword(s):  
Entrepreneurial Activity ◽  
Business Research ◽  
Family Enterprise ◽  
Large Size ◽  
Family Enterprises ◽  
The Social ◽  
The Family ◽  
The World ◽  
Relevant Context ◽  
Is Value

Introduction: Around the world, entrepreneurial activity is influenced by family. The influence of family in the creation, management, development and continuity of small, medium and large size enterprises is unequivocal. In this revision article, I argue for the relevance of further research in Honduras around entrepreneurship and the family enterprise. Methods and Discussion: As families in business are vital to the social and economic fabric of communities around the world there is value in understanding the special nature of enterprises that operate as family businesses. Honduras is a relevant context of study as research on family enterprises has been underrepresented and several challenges and fortuitous events affect the emergence and continuity of family enterprises. Conclusion: To advance understanding, this revision article brings together a collection of themes that provide a nuanced overview of key discussions and opportunities for further research.

Digital collaborative platforms: A challenge for both the legislator and the social partners in the Nordic model

2020 ◽  
Vol 11 (2) ◽  
pp. 142-153 ◽  
Author(s):  
Annamaria Westregård
Keyword(s):  
Social Security ◽  
Labour Market ◽  
Working Conditions ◽  
New Economy ◽  
Labour Law ◽  
Collective Agreements ◽  
Employment Conditions ◽  
The Social ◽  
Social Partners ◽  
Security Regulations

This paper focuses on the specific problems in the labour and social security legislation as it relates to crowdworkers in the digitalised new economy, analysing their place in labour market, and especially in the collective agreements which are the standard means of regulating working conditions in the Nordic model. Sweden has a binary system where a performing party is as either an employee or self-employed. The law on working and employment conditions offers only limited protection to those on short, fixed-term contracts; instead, it is social partners that have improved crowdworkers’ conditions in some industries by using collective bargaining. However, there are no collective agreements in the digital economy, or indeed for platform entrepreneurs. The complications of the parties’ positions will be analysed, especially as platforms do not consider themselves to be employers, but rather coordinators of the self-employed. It is not only labour law regulations that are important to prevent precariat among crowdworkers. It is also very important that the social security regulations adapt to the new labour market as the social security legislation is an important part of the Nordic model.

scholarly journals Tests of two optimal incentive models for executive stock options

2011 ◽  
Vol 9 (1) ◽  
pp. 136-155
Author(s):  
Jean M. Canil ◽  
Bruce A. Rosser
Keyword(s):  
Executive Compensation ◽  
Stock Options ◽  
Abnormal Returns ◽  
Outside Directors ◽  
Data Set ◽  
Stock Volatility ◽  
Unique Data ◽  
Exercise Price ◽  
Grant Size

Using a unique data set, we test theoretical propositions relating to grant size and exercise price in determination of optimal executive compensation. For Hall and Murphy, pay-performance sensitivity does not behave as predicted with respect to CEO risk aversion and diversification, but the latter supports observed grant size while ATM grants exhibit positive abnormal returns as predicted. Consistent with Choe, exercise price is found inversely related to leverage. The unexpected positive relation between grant size and stock volatility is conjectured driven by CEOs’ influencing large grants, which are found associated with weak corporate governance but ameliorated by outside directors.

scholarly journals Security Regulation and Enterprise Innovation in Communication Industry

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Kai Gao ◽  
Lijun Ma
Keyword(s):  
Evolutionary Game ◽  
Rent Seeking ◽  
Policy Implications ◽  
Communication Industry ◽  
The Social ◽  
Enterprise Innovation ◽  
The Government ◽  
Security Regulations ◽  
The Impact ◽  
Government Security

This paper conducted an evolutionary game model of the interaction between the governments and communication enterprises and analyzed the impact of the government’s communication security regulation on the innovation decision-making of communication enterprises. The results show that the behavior of the governments depends on the social benefits, rent-seeking benefits, and regulating costs in strict and de security regulations. The communication enterprises’ behavior depends on the benefits of innovation and the costs in R&D and rent-seeking. When government subsidies are relatively inadequate, the communication enterprises’ strategy under government security regulation swings from not-innovation finally to innovation. The policy implications of this study indicate that appropriate de security regulation by the government will help communication enterprises generate a good atmosphere for innovation, and the appropriate increase in subsidies will be more conducive to driving enterprise innovation.

scholarly journals Profitability of the Momentum Strategies in the Tunisian Stock Market

2016 ◽  
Vol 7 (1) ◽  
pp. 17 ◽  
Author(s):  
Ramzi Boussaidi ◽  
Chaima Hmida
Keyword(s):  
Stock Market ◽  
Abnormal Returns ◽  
Momentum Strategies ◽  
Stock Performance ◽  
Listed Firms ◽  
Holding Period ◽  
The Past ◽  
Cumulative Abnormal Returns

This paper examines the profitability of the momentum strategies in the Tunisian stock market using all the listed firms for the period 1991-2015. The stock performance is measured by the returns and the cumulative abnormal returns during a formation and holding period of 3-12 months. We found evidence of momentum profitability especially for the sub-period 2003-2015. Buying the tercile or the quintile portfolio of stocks that have performed well in the past 3, 6 and 9 months and selling the tercile or quintile of the stocks that have performed poorly during the same periods, generate statistically and economically positive returns during the subsequent 3, 6, 9 and 12 months.

International Real Estate Review

2012 ◽  
Vol 15 (1) ◽  
pp. 107-126
Author(s):  
Hongyan Du ◽  
◽  
Yongkai Ma ◽  
Keyword(s):  
Real Estate ◽  
Stock Returns ◽  
Positive Impact ◽  
Abnormal Returns ◽  
Systematic Risk ◽  
Stock Performance ◽  
Significant Difference ◽  
Corporate Real Estate ◽  
Systematic Risks ◽  
The Impact

This paper attempts to study the relationships among corporate real estate (CRE), capital structure and stock performance of China¡¦s non-real estate firms, including the bidirectional relationships between debt ratio (DR) and corporate real estate ratio (CRER), the impact of CRER on stock performance, and whether this impact differs across firms with different debt levels. The results show that for the overall sample, DR has a positive effect on CRER, while CRER negatively affects DR. CRER has no significant positive impact on the abnormal returns of stocks, and even decreases those for firms in the information industry. However, it can significantly reduce the systematic risks of stock returns. Moreover, we find that CRER has no significant effect on abnormal returns regardless of the amount of debt level that a firm has, and there is no significant difference between the effects of CRER on abnormal returns for firms with different levels of debt. On the other hand, the effect of CRER on systematic risk is significantly negative for firms in the low debt group, and insignificantly positive for firms in the high debt group. The CRER of lower debt firms can significantly reduce much more systematic risk than that of the high debt firms.

Information content of web-based stock ratings: the case of Motley fool CAPS data

2018 ◽  
Vol 15 (3) ◽  
pp. 393-410
Author(s):  
Arvind Mahajan
Keyword(s):  
Information Content ◽  
Factor Model ◽  
Abnormal Returns ◽  
Predictive Ability ◽  
Data Set ◽  
Web Based ◽  
Stock Performance ◽  
Content Type ◽  
Unique Data ◽  
Asset Pricing Models

Purpose The purpose of this paper is to answer a fundamental question – are individual stock picks by a particular internet investment community informative enough to beat the market? The author observes that the stock picks by the CAPS community are reflective of existing information and portfolios based upon CAPS community stock rankings do not generate abnormal returns. The CAPS community is good at tracking existing performance but, it lacks predictive ability. Design/methodology/approach The study uses a unique data set of stock ratings from Motley Fools CAPS community to determine the information content embedded in these ratings. Observing predictive ability of this web-based stock ratings forum will raise questions about the efficiency of the financial markets. The author forms stock portfolios based on stocks’ star ratings, and star rating changes, and test if the long-short portfolio strategy generates significant α after controlling for single, and multi-factor asset pricing models, such as Fama-French three-factor model and Carhart four-factor model. Findings The paper finds no evidence that the CAPS community ratings contain “information content,” which can be exploited to generate abnormal returns. CAPS community ratings are good at tracking existing stock performance, but cannot be used to make superior forecasts to generate abnormal returns. The findings are consistent with the efficient market hypothesis. Furthermore, the author provides evidence that CAPS community ratings are themselves determined by stock performance rather than the other way around. Originality/value The study employs a unique data set capturing the stock ratings of a very popular web-based investment community to evaluate its ability to make better than random forecasts. Besides applying well-accepted asset pricing models to generate α, the study conducts causality tests to discern a causal relation between stock ratings and stock performance.

scholarly journals CEO Pay Sensitivity (Delta and Vega) and Corporate Social Responsibility

2020 ◽  
Vol 12 (19) ◽  
pp. 7941 ◽  
Author(s):  
Atif Ikram ◽  
Zhichuan (Frank) Li ◽  
Travis MacDonald
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Empirical Evidence ◽  
Causal Relationship ◽  
Social Performance ◽  
Stock Volatility ◽  
Stock Performance ◽  
Compensation Structure ◽  
Ceo Pay ◽  
Corporate Social

We use CEO pay sensitivity to stock performance (delta) and stock volatility (vega) to provide empirical evidence that CEO compensation structure influences firm Corporate Social Responsibility (CSR) performance. We find that delta has no significant effect on CSR, while vega has a strong, causal relationship with CSR. Our findings suggest that CEOs do not view CSR as value enhancing, but as a way to increase their own compensation through vega. Firms that want to improve their social performance should consider vega as an important compensation incentive for executives.

scholarly journals Taste, Sensation, and Skill in the Sociology of Consumption

2018 ◽  
pp. 472-486
Author(s):  
David Wright
Keyword(s):  
Aesthetic Judgment ◽  
The Body ◽  
Taste Sensation ◽  
Sociological Study ◽  
The Social ◽  
The Aesthetic ◽  
Sociology Of Consumption ◽  
And Training ◽  
Is Value

This chapter re-examines foundational philosophical controversies about the meaning of taste and reflects on how tastes have been understood by sociologists. It argues these insights, while revealing the social patterning of tastes, have also obscured the extent to which tastes are bound up both with sensory experience and with the process of learning the management of the body and its responses to the world. It concludes that, while the substantive weight of the sociological study of tastes has concerned itself with questions of the aesthetic and to the identification of different dispositions held by individuals and groups in relation to aesthetic judgment, there is value, in understanding contemporary cultures, to building up those accounts of taste that are more oriented to questions of the ascetic and to the role of restraint and training in the development and cultivation of tastes.

scholarly journals Informed Trading around Stock Split Announcements: Evidence from the Option Market

2017 ◽  
Vol 52 (2) ◽  
pp. 705-735 ◽  
Author(s):  
Philip Gharghori ◽  
Edwin D. Maberly ◽  
Annette Nguyen
Keyword(s):  
Stock Prices ◽  
Stock Return ◽  
Implied Volatility ◽  
Abnormal Returns ◽  
Informed Trading ◽  
Return Volatility ◽  
Stock Volatility ◽  
Stock Return Volatility ◽  
Weak Evidence ◽  
Abnormal Increase

Prior research shows that splitting firms earn positive abnormal returns and that they experience an increase in stock return volatility. By examining option-implied volatility, we assess option traders’ perceptions on return and volatility changes arising from stock splits. We find that they do expect higher volatility following splits. There is only weak evidence, though, of option traders anticipating an abnormal increase in stock prices. We also show that our option measures can predict both stock volatility levels and changes after the announcement. However, there is little evidence that they can predict the returns of splitting firms.

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