scholarly journals Circular Economy Impact Analysis on Stock Performances: An Empirical Comparison with the Euro Stoxx 50® ESG Index

2022 ◽  
Vol 14 (2) ◽  
pp. 843
Author(s):  
Donato Morea ◽  
Fabiomassimo Mango ◽  
Mavie Cardi ◽  
Cosimo Paccione ◽  
Lucilla Bittucci
Keyword(s):  
Financial Markets ◽  
Stock Returns ◽  
Circular Economy ◽  
Impact Analysis ◽  
Positive Impact ◽  
Economic Sectors ◽  
Initial Assumption ◽  
Considerable Impact ◽  
The Relationship ◽  
Specific Score

Environmental issues have a considerable impact in all economic sectors, also influencing financial markets. As a result, environmental, social, and governance (ESG) awareness is rising in the financial sector. In this perspective, the concept of circular economy (CE) assumes central relevance. The aim of our study is to investigate the relationship between CE strategies and market performance; to this end, we use ESG scores as a proxy for CE. Our initial assumption is that since CE is a component of the “E” factor—in that it can generate positive and measurable environmental impacts—then it can be associated with the ESG score. Therefore, we can methodologically overcome the lack of a specific score related to CE. We use a preselection model based on historical performance by verifying the percentages of the presence of stocks in the two selected indices, namely ESG Euro Stoxx 50® and Euro Stoxx 50-ESG. Overall, we find that ESG profiles have a positive impact on stock performance, although ESG scores do not express higher performance per se. Furthermore, our analysis shows that, to date, there is no evidence that CE initiatives can influence stock returns.

scholarly journals Role of traditional Chinese philosophies and new product development under circular economy in private manufacturing enterprise performance

2019 ◽  
Vol 57 (23) ◽  
pp. 7219-7234 ◽  
Author(s):  
Nachiappan Subramanian ◽  
Angappa Gunasekaran ◽  
Lin Wu ◽  
Tinghua Shen
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Circular Economy ◽  
Positive Impact ◽  
Academic Research ◽  
New Product ◽  
Process Performance ◽  
And Performance ◽  
The Relationship

The new product development (NPD) process–performance link has been sufficiently studied in academic research. However, recent NPD process is significantly different from the conventional NPD specifically with the inclusion of sustainability considerations under circular economy (CE) context. In theory, NPD with CE considerations (CE-NPD), compared with the conventional NPD, is associated with higher costs and longer development times. This study empirically examines the effect of the CE-NPD process on both time-to-market (TTM) and profit performance in the context of Chinese private enterprises. In addition, the role of traditional Chinese philosophies of Confucianism and Taoism in influencing the CE-NPD process–performance link is also investigated. We find that Confucianism positively moderates the relationship between the CE-NPD process and TTM performance. However, it negatively moderates the CE-NPD-profit link. On the other hand, the moderating effect of Taoism is negative on both the CE-NPD-TTM and CE-NPD-profit links. An interesting finding of this study is that the coexistence of Confucian and Taoist values in NPD workers has the strongest positive impact on the relationship between the CE-NPD process and performance. Our study provides insights on the way in which companies should plan to apply Chinese philosophies during the CE-NPD process to maximise the benefits.

scholarly journals Relationship Between Capital Structure and Stock Returns of Jordanian Commercial Banks

2020 ◽  
Vol 13 (2) ◽  
pp. 100
Author(s):  
Sufian Radwan Al-Manaseer
Keyword(s):  
Capital Structure ◽  
Stock Returns ◽  
Firm Size ◽  
Commercial Banks ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
The Impact ◽  
The Relationship

This study aims to analyze the relationship between capital structure and stock returns of Jordanian banks listed on the Amman Stock Exchange from 2009 to 2018. The study sample is composed of 13 commercial banks in Jordan. The e-views program is used to conduct the statistical analysis of study variables. Initially, a simple linear regression analysis is conducted to determine the impact of capital structure as measured by financial leverage on stock returns and vice versa. Then, several control variables are added: growth in assets, liquidity, firm size, and profitability. This study has found that growth, capital structure, and profitability have a positive impact on stock returns. By contrast, liquidity and firm size have a negative impact on stock returns. Stock returns and firm size have a positive impact on capital structure, whereas liquidity, growth, and profitability have a negative impact on capital structure.

scholarly journals The relationship between βeta and stock returns in the JSE securities exchange in South Africa

2011 ◽  
Vol 9 (1) ◽  
pp. 558-566
Author(s):  
Raphael Tabani Mpofu
Keyword(s):  
South Africa ◽  
Time Series ◽  
Regression Analysis ◽  
Financial Markets ◽  
Stock Returns ◽  
South African ◽  
Time Series Data ◽  
Series Data ◽  
The South ◽  
The Relationship

The purpose of this study was is to examine the relationship between stock βeta and returns in the JSE Securities Exchange. If the model is applicable in its entirety or can explain the beta-stock returns relationship, it raises an important academic question, mainly, how should the South African financial market be viewed by investors and portfolio managers, given the political-social-economical classifications that South Africa finds itself in, sometimes referred to as developing, emerging or underdeveloped? The time-series data used was from Sharenet as well as from the South African Reserve Bank macro-economic time series data. The sample period consisted of 10 years of monthly time series data between January 2001 and December 2010. Regression analysis was applied using the conditional approach. When using the conditional capital asset pricing model (CAPM) and cross-sectional regression analysis, the findings strongly supported the significant relationship between stock excess returns and βeta. However, the results do not provide strong evidence of a CAPM relation between risks and realized return trade-off in the South African financial markets. These results demonstrate that the South African financial markets are complex and financial tools, such as the CAPM can be used to explain complex financial phenomenon as in other developed markets, although complete reliance on the CAPM should be relied upon.

scholarly journals Econometric Modelling of the Impact of Knowledge Diffusion and Other Factors on Exports of Russian Regions

2020 ◽  
Vol 17 (4) ◽  
pp. 811-819
Author(s):  
O. S. Mariev ◽  
◽  
N. S. Teplyakov ◽  
Keyword(s):  
Positive Impact ◽  
Knowledge Diffusion ◽  
Russian Regions ◽  
Design Strategies ◽  
Economic Sectors ◽  
Main Hypothesis ◽  
Sectoral Structure ◽  
Research Findings ◽  
The Impact ◽  
The Relationship

This study focuses on the sectoral structure of exports of Russian regions and its dynamics. We also explore the reasons for similarities in export portfolios of regions. Despite the differences in geography, climate and capital availability, Russian regions have more similarities than differences in terms of their export baskets. This conclusion is valid for the six economic sectors we examined based on observations from 1998 to 2018. This paper aims to clarify the nature of the relationship between the structure of exports and knowledge diffusion. Our main hypothesis is that knowledge diffusion has a positive impact on the similarity of exports in Russian regions. Using econometric tools, we bring to light the following patterns: first, knowledge diffusion has a positive effect on similarity of regional exports; second, an increase in the distance between Russian regions leads to a decrease in the similarity of their export baskets, while the presence of a common border leads to the opposite; and finally, a growing difference in socio-economic indicators leads to a decrease in the similarity of regions’ export baskets. The research findings could be used to design strategies for development of regional exports.

Policy uncertainty in Australian financial markets

2020 ◽  
pp. 031289622095912
Author(s):  
Lee A. Smales
Keyword(s):  
Economic Policy ◽  
Financial Markets ◽  
Stock Returns ◽  
Risk Premium ◽  
Negative Impact ◽  
Jel Classification ◽  
Policy Uncertainty ◽  
Corporate Managers ◽  
Excess Stock Returns ◽  
The Relationship

Economic policy touches most facets of corporate decision-making and variations in policy can elicit significant changes in financial performance and asset prices. We utilize the economic policy uncertainty (EPU) measure of Baker et al. to investigate the extent to which policy uncertainty influences Australian financial market returns. Our empirical results demonstrate that both domestic and global uncertainty have a significant negative impact on excess stock returns, changes in bond yields and Australian dollar (AUD) returns. The relationship is concentrated in the left tail of the return distribution and largely driven by increases in policy uncertainty. Although the identified relationship is negative throughout the sample period, the magnitude of the relationship appears to be state dependent and is influenced by periods of high uncertainty, recession and the lead-up to federal elections. The most plausible explanation for our results is that uncertainty about economic policy is channelled to financial markets via the discount rate effect, resulting in a higher risk premium. Our results are important for investors, corporate managers and policy makers wishing to navigate periods of policy uncertainty. JEL Classification: G10, G12, G14, G15

scholarly journals Has COVID-19 changed the stock return-oil price predictability pattern?

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Fan Zhang ◽  
Paresh Kumar Narayan ◽  
Neluka Devpura
Keyword(s):  
Financial Markets ◽  
Stock Returns ◽  
Empirical Model ◽  
Economic Activity ◽  
Stock Return ◽  
Oil Prices ◽  
Trading Strategies ◽  
Oil Price ◽  
Seasonal Effects ◽  
The Relationship

AbstractIn this paper, we examine if COVID-19 has impacted the relationship between oil prices and stock returns predictions using daily Japanese stock market data from 01/04/2020 to 03/17/2021. We make a novel contribution to the literature by testing whether the COVID-19 pandemic has changed this predictability relationship. Employing an empirical model that controls for seasonal effects, return-related control variables, heteroskedasticity, persistency, and endogeneity, we demonstrate that the influence of oil prices on stock returns declined by around 89.5% due to COVID-19. This implies that when COVID-19 reduced economic activity and destabilized financial markets, the influence of oil prices on stock returns declined. This finding could have implications for trading strategies that rely on oil prices.

Financial Intermediation and Growth: Theory and Some Cross-Country Evidence

1997 ◽  
Vol 36 (4II) ◽  
pp. 855-862
Author(s):  
Tayyeb Shabir
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Financial Intermediation ◽  
Empirical Estimates ◽  
Financial Liberalisation ◽  
Cross Country ◽  
Level Of Significance ◽  
The Relationship ◽  
Positive Effect ◽  
Theoretical Developments

Well-functioning financial markets can have a positive effect on economic growth by facilitating savings and more efficient allocation of capital. This paper characterises some of the recent theoretical developments that analyse the relationship between financial intermediation and economic growth and presents empirical estimates based on a model of the linkage between financially intermediated investment and growth for two separate groups of countries, developing and advanced. Empirical estimates for both groups suggest that financial intermediation through the efficiency of investment leads to a higher rate of growth per capita. The relevant coefficient estimates show a higher level of significance for the developing countries. This financial liberalisation in the form of deregulation and establishment and development of stock markets can be expected to lead to enhanced economic growth.

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