scholarly journals Volatility in Indian Stock Markets During COVID-19

2022 ◽  
Vol 9 (1) ◽  
pp. 1-16
Author(s):  
Khushboo Gupta ◽  
Seshanwita Das ◽  
Kanishka Gupta
Keyword(s):  
Special Reference ◽  
Stock Markets ◽  
Decision Process ◽  
Stock Exchange ◽  
Investment Decision ◽  
Time Frame ◽  
Investment Strategies ◽  
Equity Investment ◽  
Augmented Dickey Fuller ◽  
The Impact

The aim of the paper is to evaluate the impact of novel COVID-19 on the returns and volatility of Indian stock markets with special reference to equity investment strategies of Bombay Stock Exchange. For the purpose of evaluating the impact, the study has applied GARCH) The research has considered a time frame from March, 2015 to January, 2021. Prior to implementing GARCH model, pre-estimation tests i.e., Augmented Dickey-Fuller and ARCH-Lagrange Multiplier, were conducted. Outcomes clearly indicate that the returns during the crisis for all the strategy indices have been negative which means that the COVID-19 outbreak resulted in massive losses. Additionally, 'during crisis' period showed increase in volatility for all the strategy indices depicting that the pandemic has a long-lasting effect and will take time to fade off. This research will help the investors in the investment decision process by giving them insights about the different strategies.

ARE FINANCIAL INVESTORS PRONE TO EXOGENOUS (CRICKET) SENTIMENTS THAT AFFECTS EQUITY INVESTMENT DECISION AND INDUCES VOLATILITY IN STOCK MARKET?

2020 ◽  
Vol 38 (2) ◽  
Author(s):  
Muhammad Kashif ◽  
Asra Shaikh ◽  
Mobeen Ur Rehman
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Investment Decision ◽  
Negative Influence ◽  
Bad News ◽  
Equity Investment ◽  
Auto Correlation ◽  
Asymmetric Behavior ◽  
Auto Regressive ◽  
The Impact

This paper examines the volatility in stock returns due to mood-swings of financial investors affected by the outcome of one-day international (ODI) cricket matches played by Pakistan against cricketing nations. The impact of matches is analyzed on same-day and for next-day volatility in returns by using Generalized Auto-Regressive Conditional Heteroskedasticity (GARCH 1,1) and Glosten, Jagannathan & Runkle (GJR 1,1) methodology, supported by Engle (arch), L-Jung Q-stats (auto-correlation) and Jarque-Bera (normality) tests. Empirical time-series results show volatility can be predicted through past volatility and can be generalized. The win or loss position of Pakistan in ODI has a significant influence on next day volatility of stock returns. However, GJR analysis provides strong evidence of asymmetric behavior on next day in Karachi Stock Exchange (KSE)-100 index, states bad-news resulting from ODI matches has a significant negative influence on the next-day volatility of stock returns, due to less trading on the subsequent day of the match.

scholarly journals An Analysis of Behavioral Biases in Investment Decision-Making

2019 ◽  
Vol 10 (4) ◽  
pp. 55 ◽  
Author(s):  
Geetika Madaan ◽  
Sanjeet Singh
Keyword(s):  
Decision Making ◽  
Positive Impact ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Individual Investors ◽  
Behavioral Biases ◽  
Investment Decision Making ◽  
Survey Responses ◽  
The Impact

Individual investor’s behavior is extensively influenced by various biases that highlighted in the growing discipline of behavior finance. Therefore, this study is also one of another effort to assess the impact of behavioral biases in investment decision-making in National Stock Exchange. A questionnaire is designed and through survey responses collected from 243 investors. The present research has applied inferential statistics and descriptive statistics. In the existing study, four behavioral biases have been reviewed namely, overconfidence, anchoring, disposition effect and herding behavior. The results show that overconfidence and herding bias have significant positive impact on investment decision. Overall results conclude that individual investors have limited knowledge and more prone towards making psychological errors. The findings of the study also indicate the existence of these four behavioral biases on individual investment decisions. This study will be helpful to financial intermediaries to advice their clients. Further, study can be elaborated to study other behavioral biases on investment decisions.

scholarly journals Dynamic Relationship of Industrial Structure Change and Economic Fluctuations: Evidence from Sichuan, China

2015 ◽  
Vol 7 (12) ◽  
pp. 253
Author(s):  
Ying Feng ◽  
Dongmei Li ◽  
Yanni Long
Keyword(s):  
Industrial Structure ◽  
Stock Exchange ◽  
Investment Decision ◽  
Great Influence ◽  
Structure Optimization ◽  
Structure Change ◽  
Economic Fluctuations ◽  
Annual Reports ◽  
Market Values ◽  
The Impact

Industrial Structure Change is not only an important source of economic growth; it’s also an important driving force for economic fluctuations. In this paper, on the basis of combing the literature, and the relevant data in 1978-2013 of Sichuan Province in China, and the use of empirical VAR model to analyzes the mutual dynamic influence of Sichuan Industrial Structure Change and economic fluctuations. The study found that the rationalization and optimization of the industrial structure both impact on economic fluctuations, but the impact are on the opposite direction. In the short term, the industrial structure rationalization and industrial structure optimization respectively has positive and negative effects on economic fluctuations; in the long term the opposite. Industry Structure optimization fluctuations shows a great influence on economic fluctuations, while the rationalization of the industrial structure shows a relatively small negative effect. The impact of economic fluctuations on the rationalization of the industrial structure fluctuation and optimization performance for the negative and positive relationships. d annual reports of the sampled firms and their market values obtained from the official daily list of the Nigerian Stock Exchange (NSE) over a period of 10 years (2001-2010). Using multivariate regression as technique for data analysis, the study established that accounting information of Food &amp; Beverages companies in Nigeria is value relevant. Accordingly, the study recommends the use of financial statements figures of Food and Beverages firms for investment decision.<p> </p>

scholarly journals How do emotional intelligence and behavioral biases of investors determine their investment decisions?

2020 ◽  
Vol 14 (1) ◽  
pp. 35-47
Author(s):  
Saloni Raheja ◽  
Babli Dhiman
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Investment Decision ◽  
Sample Selection ◽  
Investment Decisions ◽  
Risk Tolerance ◽  
Content Type ◽  
Behavioral Biases ◽  
Investment Decision Making ◽  
The Impact

Purpose In earlier studies, research has shown that EI is the only element, which influences the ways in which people develop in their lives, jobs and social skills control their emotions and get along with other people. It is EI that dictates the way people deal with one another and understand emotions. The research gap is to explore the impact of behavioral factors and investors psychology on their investment decision-making. Design/methodology/approach The information was gathered from 500 financial specialists. The region of research was the financial specialists who contribute through LSC Securities Ltd. in Punjab State. The purposive testing system was used in this examination. Findings The investigation found that the positive connection between the conduct predispositions of the financial specialists and venture choices of the speculators and positive connection between enthusiastic insight of the financial specialists and their venture choices. Yet, the authors found that the enthusiastic insight better foresees the venture choices of the financial specialists than the conduct predispositions of the speculators. Among the different elements of conduct inclinations of the speculator’s lament and carelessness are identified with the financial specialist’s venture choices. Among the various estimations of eager understanding – care, dealing with emotions, motivation, empathy and social aptitudes are related to the hypothesis decisions of the monetary pros. Research limitations/implications The sample selection was based on purposive sampling, rather than a random probability sample. The sample was area specific, restricted only to Ludhiana Stock Exchange in Punjab state. Therefore, the results of the study cannot be generalized with certainty to all the investors investing through other exchanges in other states. The inferences are based on the assumption that the data provided by the investors are true and correct. The findings may be relevant for other stock exchanges as that of the Ludhiana Stock Exchange. However, the authors do not claim the generalization of the results. Practical implications This study also helps to understand the relationship between investment decision-making and risk tolerance of investors. It will helpful for the financial advisors to know the behavioral biases of investors while making an investment decision, and therefore, they can advise investors properly to mitigate such biases. It may help the investors in understanding the subjective part of their behavior and control their emotions while taking decisions for their investment in stock market options. Social implications This research will help investment advisors and finance professionals to judge investors’ attitudes toward risk in a better way, which leads to better investment decisions. Originality/value This study is my own study and it is original and has not been published anywhere.

scholarly journals Measuring Information Asymmetry in Large Active Firms on the Tehran Stock Exchange

2016 ◽  
Vol 63 (3) ◽  
pp. 333-346
Author(s):  
Mostafa Shamsoddini ◽  
Mohammad N. Shahiki Tash ◽  
Farhad Khodadad-Kashi
Keyword(s):  
Firm Performance ◽  
Financial Markets ◽  
Information Asymmetry ◽  
Stock Markets ◽  
Stock Exchange ◽  
Composite Index ◽  
Financial Information ◽  
Investment Strategies ◽  
Information Measuring ◽  
Informational Environment

In financial markets, transparency of financial information is one of the most effective variables of investment strategies. Information asymmetry can seriously affect firm performance on the stock exchange and firms with a poor informational environment can lose the interest of investors. Reducing information asymmetry can have an important effect on firm performance on the stock exchange. Firms may lack a clear informational environment in the market because of the emerging conditions governing the Tehran Stock Exchange. Because larger and more active firms on the Tehran Stock Exchange provide more information, measuring the informational environment of these firms provides an overview of information asymmetry. The present study calculated the information asymmetry in these firms using the PIN and FE indices. The inconsistent results provided by these indices prompted the authors to offer a new index that is a composite of the PIN and FE that can better explain information asymmetry in developing market such as Asian stock markets. The results show that the new composite index, by using the mechanisms of the PIN and FE indices, provides a better outcome. The new composite index shows that the Tosee Melli Inv (TMEL1), Mobarakeh Steel (FOLD1), Iran Mobil Tele (HMRZ1), Saipa (SIPA1) and I.N.C. Ind. (MSMI1) firms have a better informational environment on the Tehran Stock Exchange.

scholarly journals EFFECT OF EMOTIONAL INTELLIGENCE AND FINANCIAL LITERACY ON INVESTMENT DECISION MAKING WITH A MEDIATING ROLE OF RISK PERCEPTION

2014 ◽  
Vol 02 (02) ◽  
pp. 12-20
Author(s):  
Sahar Parvez ◽  
Keyword(s):  
Emotional Intelligence ◽  
Risk Perception ◽  
Financial Literacy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Impact

This research paper examines the impact of emotional intelligence and financial literacy on investment decision with a mediating role of risk perception. The data is collected by using questionnaire, from a sample of 152 investors, from stock exchange and banks. The results support that to make adequate investment decisions, investors should be financially literate and have control on their emotions. However, risk perception of investors does not mediate this relationship.

scholarly journals The Impact of Investment Decision and Funding on Financial Performance and Firm Value

2019 ◽  
Vol 8 (2) ◽  
pp. 103
Author(s):  
Hadi Santoso
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
The Right ◽  
The Impact ◽  
Selection Of

Managers who are responsible for the management of companies are faced with two important decisions - investment and funding. The right investment decisions and choice of funding sources are important because they affect the company's financial performance. The selection of the types of assets to be invested and the right types of financing sources result in optimal returns for the company. It reflects good company performance and future prospects. In addition, optimal return is a good sign for investors. Companies that perform well experience increase in the value of their firm. This study examined the effect of investment decisions and the selection of appropriate sources of funds on the performance of the company and the consequent impact on the firm value. The study was conducted in two parts. The first part examined the effect of investment decisions on long-term assets with long-term funding on the rate of return and firm value. The second part examined the effect of investment decisions on the company's short-term assets and funding for financial performance and firm value. The case study used in this research is a consumer goods sub-sector company listed on the Indonesia Stock Exchange in the period 2010 to 2017. Path analysis is the data analysis tools that was used. The results of data analysis showed that the asset structure has an effect on financial performance and firm value. The capital structure affects the financial performance but does not affect the firm value of the company. Financial performance was measured by ROI.

scholarly journals Weak form market efficiency test of Bangladesh Stock Exchange: an empirical evidence from Dhaka Stock Exchange and Chittagong Stock Exchange

2019 ◽  
Vol 21 (3) ◽  
pp. 285
Author(s):  
Shafir Zaman
Keyword(s):  
Stock Market ◽  
Market Efficiency ◽  
Empirical Evidence ◽  
Stock Markets ◽  
Stock Exchange ◽  
Investment Decision ◽  
Weak Form ◽  
Efficiency Test ◽  
Non Parametric ◽  
Weak Form Efficiency

Investors need to have an idea about stock market before making investment whether the stock markets are efficient or not to take investment decision in stock market. For that reason, measurement of market efficiency of stock market bears significance to investors. Bearing it in mind, the study is undertaken to find out the existence of weak form efficiency prevails in largest stock market of Bangladesh. In order to get perfect result Parametric and Non Parametric tests were conducted of DSE & CSE for 2013 to 2017. It was found from all tests that Dhaka and Chittagong Stock exchange are not weak form efficient. Therefore, the result of the study will act as a helping hand to researchers to find out the reason of Bangladesh stock market not being weak form efficient as well as providing measurement to make the stock market weak form efficient.

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