ICT and the Efficient Markets Hypothesis

2008 ◽  
pp. 3623-3633
Author(s):  
Andrea J.A. Roofe
Keyword(s):  
Qualitative Methods ◽  
Financial Markets ◽  
Capital Market ◽  
Technological Development ◽  
Efficient Markets ◽  
Preliminary Attempt ◽  
Lack Of Information ◽  
Efficient Markets Hypothesis ◽  
The Relationship ◽  
The Capital Market

This article represents a preliminary attempt to indentify the variables influencing the relationship between technological development and efficiency in the financial markets of a Caribbean economy. The analysis uses qualitative methods only. From the late 1980s, Kitchen (1988) observed, “… the major inefficiency in the capital market is the lack of information…” (p. 48).

ICT and the Efficient Markets Hypothesis

2005 ◽  
pp. 353-359
Author(s):  
A.J.A. Roofe
Keyword(s):  
Qualitative Methods ◽  
Financial Markets ◽  
Capital Market ◽  
Technological Development ◽  
Efficient Markets ◽  
Preliminary Attempt ◽  
Lack Of Information ◽  
Efficient Markets Hypothesis ◽  
The Relationship ◽  
The Capital Market

This article represents a preliminary attempt to indentify the variables influencing the relationship between technological development and efficiency in the financial markets of a Caribbean economy. The analysis uses qualitative methods only. From the late 1980s, Kitchen (1988) observed, “… the major inefficiency in the capital market is the lack of information…” (p. 48).

scholarly journals An Analysis of Differences in Firms’ Perception of Banks based on Sectors and Number of Monthly Transactions

2011 ◽  
Author(s):  
İbrahim Halil Ekşi ◽  
Yavuz Akçi
Keyword(s):  
Customer Satisfaction ◽  
Capital Market ◽  
Banking Services ◽  
Face To Face ◽  
Service Sectors ◽  
The Relationship ◽  
The Capital Market

In this study, it was aimed to put forward the perception differences of banks, one of the most important tool of the capital market which is a political tool to develop financial improvement on owners and managers of firms. The data was collected by means of face to face meetings with the managers of 520 companies from manufacturing, trading and service sectors, randomly selected from Adana, Mersin and Gaziantep provinces. The relationship between the perception of banking services and the number of monthly transactions and provinces with the banks with which their firms have business activities was studied by analyzing the collected data and doing the frequency, percentage and ANOVA tests. According to the results of the analysis, even though there was no difference in terms of sectors, there was seen an important difference in terms of the number of monthly transactions and provinces. The satisfaction of different products and services for the firms having relatively fewer number of monthly transactions is also crucial today, when the customer satisfaction is of great importance.

scholarly journals FRACTAL MARKETS HYPOTHESIS AND THE GLOBAL FINANCIAL CRISIS: SCALING, INVESTMENT HORIZONS AND LIQUIDITY

2012 ◽  
Vol 15 (06) ◽  
pp. 1250065 ◽  
Author(s):  
LADISLAV KRISTOUFEK
Keyword(s):  
Financial Crisis ◽  
Complex Systems ◽  
Financial Markets ◽  
Global Financial Crisis ◽  
Efficient Markets ◽  
Investment Horizon ◽  
Heterogenous Agents ◽  
Efficient Markets Hypothesis ◽  
The Global Financial Crisis ◽  
Underlying Processes

We investigate whether the fractal markets hypothesis and its focus on liquidity and investment horizons give reasonable predictions about the dynamics of the financial markets during turbulences such as the Global Financial Crisis of late 2000s. Compared to the mainstream efficient markets hypothesis, the fractal markets hypothesis considers the financial markets as complex systems consisting of many heterogenous agents, which are distinguishable mainly with respect to their investment horizon. In the paper, several novel measures of trading activity at different investment horizons are introduced through the scaling of variance of the underlying processes. On the three most liquid US indices — DJI, NASDAQ and S&P500 — we show that the predictions of the fractal markets hypothesis actually fit the observed behavior adequately.

scholarly journals Effects Of Voluntary Disclosure Of The Schedule Of Manufacturing Cost On Analysts’ Earnings Forecasts: Evidence From Korea

2017 ◽  
Vol 33 (3) ◽  
pp. 623-636
Author(s):  
Hyunmin Oh ◽  
Sambock Park ◽  
Heungjoo Jeon
Keyword(s):  
Capital Market ◽  
Voluntary Disclosure ◽  
Earnings Forecasts ◽  
Manufacturing Cost ◽  
Positive Direction ◽  
Negative Direction ◽  
Supervisory Authority ◽  
Set Up ◽  
The Relationship ◽  
The Capital Market

We provide the effects of voluntary disclosure of the schedule of manufacturing cost on analysts’ earnings forecasts. We set up and analyze the disclosure of the schedule of manufacturing cost as a proxy for voluntary disclosure. Specifically, we examine the associations between voluntary disclosure of it and the accuracy of analysts’ earnings forecasts and bias in earnings forecasts. The results of our study are as follows. First, the relationship between voluntary disclosure of the schedule of manufacturing cost and the accuracy of analysts’ earnings forecasts is significant in the positive (+) direction. This means that the accuracy of analysts’ earnings forecasts is higher in the case of the firms that voluntarily disclosed the schedule of manufacturing cost, as compared to other firms. Second, the relationship between voluntary disclosure of the schedule of manufacturing cost and analysts’ bias in earnings forecasts is significant in the negative (-) direction. This means that analysts underestimate earnings in the case of the firms that voluntarily disclose the schedule of manufacturing cost, as compared to other firms. Since the schedule of manufacturing cost is still an interesting item and useful information in the capital market, the results of our study provide important implications not only to managers, but also to investors and supervisory authority. Limitations of our study include the fact that not all diverse variables that affect voluntary disclosure and analysts’ forecasts are considered. 

scholarly journals Legal features of market risks management in investment companies

2021 ◽  
pp. 267-279
Author(s):  
Ranko Sovilj ◽  
Sanja Stojković-Zlatanović
Keyword(s):  
Financial Markets ◽  
Capital Market ◽  
Early Recognition ◽  
Comparative Method ◽  
Legal Protection ◽  
Qualitative And Quantitative ◽  
European Legislation ◽  
Market Risks ◽  
Investment Companies ◽  
The Capital Market

The issue of market risks management in investment companies is being updated and gaining importance in recent years, due to frequent crises and shocks in the financial markets. The application of the normative and comparative method in work analyzes the exposure of investment companies business to market risks. The paper points out the importance of determining market risks, as well as the types of market risks to which investment companies are exposed, and the importance of introducing new solutions adopted in the European legislation. The application of the proposed solutions based on qualitative and quantitative measures should enable both investment companies surviving on the capital market and providing adequate legal protection to investors. Therefore, the paper emphasizes the need for identifying and early recognition of market risks in investment companies, proposing appropriate measures, assessments and models for managing market risks in the investment companies.

To Reveal or Not to Reveal? The Influence of Cultural Secrecy on Discretionary Disclosure Decisions

2020 ◽  
Vol 55 (03) ◽  
pp. 2050012
Author(s):  
Max Göttsche ◽  
Stephan Küster ◽  
Tobias Steindl
Keyword(s):  
Capital Market ◽  
Private Information ◽  
Cultural Influence ◽  
Managerial Incentives ◽  
Relative Importance ◽  
Disclosure Decisions ◽  
Discretionary Disclosure ◽  
The Relationship ◽  
The Capital Market

Prior studies on the relationship between culture and discretionary disclosure fail to account for concurrent managerial incentives to reveal private information to the capital market. Our study extends the literature by investigating whether these managerial incentives offset the cultural influence on managers’ discretionary disclosure decisions. To this end, we exploit a setting in which managers have the discretion to influence both the quantity and quality of disclosure and can thereby either conceal or reveal private information. For a sample of European firms, we find that despite incentives to reveal private information, managers’ culturally determined preference for secrecy leads them to provide a low quantity as well as a lower quality of disclosure. Our results are robust to several sensitivity checks and demonstrate the relative importance of cultural influence on discretionary disclosure decisions.

scholarly journals The Financial System as a New Theoretical and Legislative Term

2019 ◽  
pp. 257-264
Author(s):  
Michael Kohajda
Keyword(s):  
Financial Markets ◽  
Capital Market ◽  
Financial System ◽  
Legal Definition ◽  
Positive Law ◽  
Legal Term ◽  
Basic Characteristics ◽  
Definition Of ◽  
The Capital Market

The aim of this paper is to define the basic characteristics of the term of the financial system as a legal term. In the paper, the author finds the absence of a general or a legal definition of this term in both the Czech scientific and practical environment as essential, as this term is already used in the Czech positive law. At the same time, he briefly defines the terms of the financial markets and the capital market as terms different from the term of the financial system. This objective is fulfilled by the author with the aim of the use of the term financial system (but also the financial markets or the capital market) in a labelling of the financial law sub-branch.

scholarly journals Investment Training Moderates the Effect of Financial Literacy, Return and Risk on Investment Interest in Capital Markets

2020 ◽  
Vol 9 (1) ◽  
pp. 102-112
Author(s):  
Anhar Fadli ◽  
Andhi Wijayanto
Keyword(s):  
Structural Equation Model ◽  
Capital Markets ◽  
Capital Market ◽  
Financial Literacy ◽  
Structural Equation ◽  
Model Analysis ◽  
Equation Model ◽  
The Relationship ◽  
Positive Effect ◽  
The Capital Market

This study aims to analyze the effect of financial literacy, return and risk on investment interests in the capital market members of Forum KSPM Kota Semarang with investment research as a moderating variable. This research uses structural equation model analysis with WarpPLS 6.0 to evaluate the relationship between variables and the effect of moderation on investor investment training with financial literacy, return, risk, and investment interest by conducting a survey of 113 respondents who were successfully collected. The results of this study confirm previous findings that financial literacy has a positive effect on investment interest, returns have a positive effect on investment interest, and risk has a positive effect on investment interest. Researchers also found that investment training could not moderate the effect of financial literacy on investment interest, but investment training could moderate the effect of return and risk on investment training.

scholarly journals Testing the Empirical Validity of the Adaptive Markets Hypothesis

2017 ◽  
Vol 9 (2) ◽  
pp. 169-184
Author(s):  
Hany Fahmy
Keyword(s):  
Financial Markets ◽  
Behavioral Finance ◽  
Asset Allocation ◽  
Smooth Transition ◽  
Efficient Markets ◽  
Irrational Behavior ◽  
Smooth Transition Regression ◽  
Efficient Markets Hypothesis ◽  
Smooth Transition Regression Model ◽  
Over Time

The issue of market e¢ ciency attracted the attention of academicians since the existence of financial markets. Over time, two schools of thoughts were established: the efficient markets school and the behavioral finance school. Proponents of the former believed in the Efficient Markets Hypothesis whereas the latter brought evidence from behavioral finance and psychology to demonstrate that financial markets are inefficient and this inefficiency is attributed to the irrational behavior of investors in making financial choices regarding asset allocation and portfolio construction. Recently, an adaptive reconciliation was suggested, which posits that investors'adaptability is what brings back inefficient markets to efficiency. The purpose of this paper is to test empirically the validity of the Adaptive Markets Hypothesis via a smooth transition regression model with exogenous threshold variable. The results support the reconciliation and show that markets are indeed efficient sometimes and inefficient most of the time.

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