Firm Size Transmission Effect and Price-Volume Relationship Analysis During Financial Tsunami Periods

2011 ◽  
Vol 2 (3) ◽  
pp. 59-78
Author(s):  
Shih-Yung Wei ◽  
Wei-Chiang Samuelson Hong ◽  
Kai Wang
Keyword(s):  
Firm Size ◽  
Stock Price ◽  
Directional Asymmetry ◽  
Financial Assets ◽  
Factors Affecting ◽  
Relationship Analysis ◽  
Transmission Effect ◽  
Reversal Phenomenon ◽  
Volume Relationship ◽  
Financial Research

Investors attend importance to forecast the price of financial assets, thus, the factors affecting the stock price are usually the focus of financial research in the field, in which the most important factors to scholars are firm size transmission effect and price-volume relationship. In this study, the analysis of these two items in the Taiwan stock market is conducted. The results indicate that the firm size transmission effect is almost significant, and the reversal phenomenon also exists. However, before the financial tsunami, the firm size transmission effect does not significantly exist; this result also indirectly proves the directional asymmetry of the market returns, proposed by McQueen, Pinegar, and Thorley (1996). For price and volume relationship, big cap index reveals that volume leads to price before the financial tsunami, and small cap index appears that price leads to volume in 2010.

Firm Size Transmission Effect and Price-Volume Relationship Analysis During Financial Tsunami Periods

2013 ◽  
pp. 206-225
Author(s):  
Shih-Yung Wei ◽  
Wei-Chiang Hong ◽  
Kai Wang
Keyword(s):  
Firm Size ◽  
Stock Price ◽  
Directional Asymmetry ◽  
Financial Assets ◽  
Market Returns ◽  
Factors Affecting ◽  
Transmission Effect ◽  
Reversal Phenomenon ◽  
Volume Relationship ◽  
Financial Research

Investors attend importance to forecast the price of financial assets, thus, the factors affecting the stock price are usually the focus of financial research in the field, in which the most important factors to scholars are firm size transmission effect and price-volume relationship. In this study, the analysis of these two items in the Taiwan stock market is conducted. The results indicate that the firm size transmission effect is almost significant, and the reversal phenomenon also exists. However, before the financial tsunami, the firm size transmission effect does not significantly exist; this result also indirectly proves the directional asymmetry of the market returns, proposed by McQueen, Pinegar, and Thorley (1996). For price and volume relationship, big cap index reveals that volume leads to price before the financial tsunami, and small cap index appears that price leads to volume in 2010.

scholarly journals Factors Affecting the Audit Delay and Its Impact on Abnormal Return in Indonesia Stock Exchange

2018 ◽  
Vol 10 (2) ◽  
pp. 48
Author(s):  
Syarifa Yunindiah Lestari ◽  
Muhammad Nuryatno
Keyword(s):  
Firm Size ◽  
Stock Price ◽  
Abnormal Return ◽  
Sampling Method ◽  
Stock Exchange ◽  
Financial Statements ◽  
Research Needs ◽  
Factors Affecting ◽  
Audit Opinion ◽  
Purposive Sampling

This study aims to study the phenomenon of audit delay that still Occurs in various companies in Indonesia Stock Exchange, Thus affecting the decision of the users of financial statements. This study secondary uses of data in 2009-2015 from 20 companies selected by purposive sampling method, which is to determine the company as a sample according to research needs. This research found that firm size (X1), leverage (X3), and audit opinion (X5) have the significant effect on the audit delay of the company in Indonesia Stock Exchange. While the variable profitability (X2) and reputation audit (X4) have no significant effect on audit delay in companies listed on Indonesia Stock Exchange. Audit delay (Y) does not affect stock price fluctuations, so it does not have a significant impact on the company’s abnormal return (AR) on the Indonesia Stock Exchange.

An econometric analysis of factors affecting the stock price of Russian companies

2019 ◽  
Vol 25 (4) ◽  
pp. 912-924
Author(s):  
M.Yu. Malkina ◽  
◽  
E.K. Yakovleva ◽  
Keyword(s):  
Stock Price ◽  
Econometric Analysis ◽  
Factors Affecting

scholarly journals The Effect Of Internal Capital Market Of Korean Large Business Groups On Investment Efficiency

2017 ◽  
Vol 33 (5) ◽  
pp. 903-918
Author(s):  
Minwoo Lee ◽  
Yuwon Choi ◽  
Sanghyuk Moon
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Stock Price ◽  
Business Groups ◽  
Internal Capital Markets ◽  
Investment Efficiency ◽  
Internal Capital Market ◽  
Factors Affecting ◽  
Controlling Shareholders ◽  
Internal Capital

This study examines whether the effect of funding through internal capital markets on investment efficiency is differentiated by the incentives of controlling shareholders as measured by the divergence between cash flow rights and voting rights of controlling shareholders (hereafter, wedge). To empirically analyze hypotheses of this study, 1,189 firm-year observations were collected from Korean firms listed on the Korea Composite Stock Price Index (KOSPI) belonging to a large business group designated by the Korea Fair Trade Commission over the period from 2005 to 2012. The results of the analysis are as follows. First, we find that the magnitude of internal funding, as measured by total payables to the related parties, is positively (+) associated with investment inefficiency. Second, the interaction variables of total payables to the related parties and the wedge have a significant positive (+) effect on investment inefficiency. In other words, the deterioration of investment efficiency due to the increase in total payables to the related parties was mainly caused by firms with a big wedge. This result suggests that the effect of internal capital markets on investment efficiency of large business groups may be differentiated by the wedge that is proxy of the controlling shareholder’s incentive. This study provides additional evidence on previous studies on the investment efficiency of large business groups by considering both the internal capital market and incentives for funding using the internal capital market, which are important factors affecting the investment of large corporate groups. Also, the results of this study are expected to provide implications for the regulatory policy of large business groups which have recently become an issue in Korea.

scholarly journals Estrategias empresariales y propensión exportadora de la industria agroalimentaria catalana y española

2011 ◽  
Vol 3 (6) ◽  
pp. 107 ◽  
Author(s):  
Mehrez Ameur ◽  
José M. Gil
Keyword(s):  
Firm Size ◽  
Foreign Capital ◽  
Foreign Market ◽  
The Other ◽  
Firm Age ◽  
Export Intensity ◽  
Factors Affecting ◽  
Managerial Strategies ◽  
Potential Benefits ◽  
Main Factors

In an increasing globalized environment, the agrofood firms’ competitiveness becomes a strategic need for future survival. Recent changes both in agrofood markets and consumers’ habits have encouraged firms to adopt adequate managerial strategies. The objective of this paper is to determine main factors affecting the exporting behavior of the agro-food firms. Data come from the Survey on Firms Strategies (ESEE). To achieve this objective, a model has been specified and estimated taking into account the characteristics of the database. The personnel qualification, the existence of foreign capital, the existence of potential benefits in foreign market and the firm’ age are the main factors explaining the agrofood firm decision to export. On the other hand, variables denoting firm size and domestic market concentration and saturation are more important to explain export intensity.

Factors Affecting Implementation of Activity Based Costing in Selected Manufacturing Units in India

2019 ◽  
Vol 8 (3) ◽  
pp. 18-30
Author(s):  
Amit Kumar Arora ◽  
M.S.S. Raju
Keyword(s):  
Logistic Regression ◽  
Firm Size ◽  
Cost Accounting ◽  
Activity Based Costing ◽  
Chi Square ◽  
Factors Affecting ◽  
Total Cost ◽  
Overhead Cost ◽  
Chi Square Test ◽  
Size Diversity

The present article is an attempt to analyze the various factors affecting the adoption of an activity-based costing (ABC) system in selected manufacturing units in India. The following seven factors are considered: firm size, diversity of the product, percentage of overhead cost in total cost, listing of the company, cost audit compulsion, separate cost accounting department and the method of accounting. Logistic regression and a Chi Square test are applied to these factors and the use of an ABC system. On the basis of 72 sample units, the study found the size of the firm, percentage of overhead cost in total cost, cost audit compulsion and the method of accounting are statistically significant for the adoption of ABC system. While factors such as diversity of the product, separate cost accounting department and the listing of the company are found to not be statistically significant for the adoption of ABC system. The study has provided additional insights into areas relating to the factors affecting the implementation of ABC systems.

An empirical analysis of the stock price-volume relationship

1988 ◽  
Vol 12 (1) ◽  
pp. 31-41 ◽  
Author(s):  
Michael Smirlock ◽  
Laura Starks
Keyword(s):  
Empirical Analysis ◽  
Stock Price ◽  
Volume Relationship

scholarly journals Determinants of Firm Capital Structure: Empirical Evidence From Vietnam

2020 ◽  
Vol 11 (4) ◽  
pp. 10
Author(s):  
Hieu Thanh Nguyen ◽  
Anh Huu Nguyen
Keyword(s):  
Capital Structure ◽  
Method Of Moments ◽  
Firm Size ◽  
Generalized Method Of Moments ◽  
Return On Assets ◽  
Return On Equity ◽  
Factors Affecting ◽  
Tangible Assets ◽  
Negative Effect ◽  
Positive Effect

The paper aims to investigate the factors affecting firm capital structure in the context of Vietnam. The research sample includes 290 non-financial listed companies on Vietnamese stock market. This study applied Generalized Method of Moments (GMM) to explain the research results. The paper investigates six factors influencing on firm capital structure including return on assets (ROA), return on equity (ROE), firm size, tangible assets, risks, and growth. The empirical results show that return on assets, tangible assets, risks, and growth have a statistically significant positive effect on the firm capital structure while return on equity has a statistically significant negative effect on the firm capital structure. In addition, when dividing companies into sectors, the study realized that determinants of capital structure in some sectors are consistent with results for entire sample. Finally, firm size has the same impact on capital structure in oil & gas companies and material companies whereas it is not statistically significant for other companies. These evidences provide a new insight to managers on how to determine the reasonable capital structure.

scholarly journals Relationship between trading volume, stock return and return volatility: A case of Nepalese insurance companies

2019 ◽  
Vol 2 (2) ◽  
pp. 32-41
Author(s):  
Niraj Acharya ◽  
Sumit Pradhan
Keyword(s):  
Firm Size ◽  
Life Insurance ◽  
Market Price ◽  
Investment Strategy ◽  
Share Price ◽  
Insurance Companies ◽  
Return On Assets ◽  
Factors Affecting ◽  
Share Prices ◽  
Price Earnings Ratio

This study examines the factors affecting the share price of Nepalese non-life insurance companies. The knowledge of the factors and their possible impact on share prices is highly appreciable as it would help investors make wise investment decisions and enable firms to enhance their market value. This study is based on secondary data of 15 non-life insurance companies which are listed in Nepal stock exchange. The study covers seven years period from the fiscal year 2011/12 to 2017/18. The result shows that firm size is positively related to market price of share and price earnings ratio. It indicates that larger firm size leads to increase in market price of share and price earnings ratio. However, the study shows that inflation is negatively related to market price of share and price earnings ratio. The study also shows that dividend per share and return on assets are negatively related to the market price of share and price earnings ratio. Similarly, earnings per share have negative relationship with market price of share and price earnings ratio. The study concludes that the increase in return on assets and earnings per shares do not explain the variation in stock price in Nepalese non-life insurance companies. Nepal is one of the emerging economy; the determinants identified may provide knowledge to the potential investors about the key factors affecting share prices in the country and accordingly assist them in optimizing their investment strategy.

scholarly journals Stock Market Investors’ Guide to Corporate Dividend Policy: Evidence from Pharmaceuticals and Chemicals Industries in Bangladesh

2017 ◽  
Vol 9 (1) ◽  
pp. 166
Author(s):  
Tanbir Ahmed Chowdhury ◽  
Jannatunnesa Jannatunnesa
Keyword(s):  
Stock Market ◽  
Firm Size ◽  
Firm Growth ◽  
Dividend Policy ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Dividend Payout ◽  
Factors Affecting

Dividend policy has been an important component in the arena of financial literature and providing evidence that dividend payout decisions are affected by various factors. Numerous studies have been conducted so far on corporate dividend policy in Bangladesh. The pharmaceuticals and chemicals industries of Bangladesh offer a lot of investment panorama for the retail investors. This research has been an endeavor to determine the factors affecting the dividend policy of these promising industries, and guide the investment decisions of the equity investors. In this attempt, this study is also a unique one to incorporate the chemicals industry along with the pharmaceuticals industry as both the industries constitute the 'pharmaceuticals and chemicals sector' listed in the stock market of Bangladesh. The study is a quantitative one based on secondary data. It comprises of different statistical analyses such as descriptive statistics, correlation matrix and multiple linear regression analysis, etc. Firm size, growth, liquidity, profitability, last year's dividend and P/E ratio are used as dependent variables. Besides, ownership structure, firm age, market share, and risk are used as control variables. The study explores that firm size has significant negative and last year’s dividend has significant positive relationship with dividend payout. However, dividend payout does not depend on firm growth, liquidity, profitability and P/E ratio of a firm. The research outcome may have important implications for the improvement of investors' perceptions, which may assist them in their investment decisions in the researched industries. Certainly more work lies ahead to add to explanations for why some of the factors affect the dividend policy of the industries, while others have no significant impact thereon.

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