scholarly journals An Investigation of Multiple Asymmetric Threshold Contagions Effects of U.S. Stock Market to Major Industrialized Countries under Turbulent Economic Conditions

2021 ◽  
Vol 12 (04) ◽  
pp. 804-825
Author(s):  
Yeong-Jia Goo ◽  
Ming-Chang Yang
Keyword(s):  
Stock Market ◽  
Economic Conditions ◽  
Industrialized Countries

scholarly journals Value and growth stocks in Brazil: risks and returns for one - and two-dimensional portfolios under different economic conditions

2011 ◽  
Vol 22 (56) ◽  
pp. 189-202 ◽  
Author(s):  
Leandro da Rocha Santos ◽  
Roberto Marcos da Silva Montezano
Keyword(s):  
Risk Analysis ◽  
Stock Market ◽  
Stock Prices ◽  
Risk Measure ◽  
Academic Research ◽  
Efficient Market Hypothesis ◽  
Economic Conditions ◽  
High Price ◽  
Value Stocks ◽  
Growth Stocks

For empirical purposes, value stocks are usually defined as those traded at low price-to-earnings ratios (stock prices divided by earnings per share), low price-to-book ratios (stock prices divided by book value per share) or high dividend yields (dividends per share divided by stock prices). Growth stocks, on the other hand, are traded at high price-to-earnings ratios, high price-to-book ratios or low dividend yields. Academic research so far produced, international and Brazilian alike, shows that value stocks outperform growth stocks, challenging the Efficient Market Hypothesis, which states that the market prices of traded stocks are the best estimate of their intrinsic values. Most studies use a single ratio to sort stocks on percentiles; risks (generally defined as beta or standard deviations) and returns are then calculated for the resulting value and growth portfolios. In the present paper, we aim to further contribute to the growing literature on the field by applying a method not previously tested on the Brazilian market. We build portfolios sorted by the price-to-earnings and price-to-book ratios alone and by a combination of both in order to assess value and growth stocks' risks and returns on the Brazilian stock market between 1989 and 2009. Furthermore, our risk analysis may be regarded as the paper's main contribution, since its approach departs from conventional risk concepts, as we not only test for beta: portfolios' returns are measured under different economic conditions. Results support a pervasive value premium in the Brazilian stock market. Risk analysis shows that this premium holds under every economic condition analyzed, suggesting that value stocks are indeed less risky. Beta proved not to be a satisfactory risk measure. Portfolios sorted by the price-to-earnings ratio yielded the best results.

scholarly journals IMPACT OF IMF LENDING ANNOUNCEMENTS ON THE PERFORMANCE OF STOCK MARKET: EMPIRICAL EVIDENCE FROM PAKISTAN

2021 ◽  
Vol 9 (3) ◽  
pp. 467-476
Author(s):  
Muhammad Azeem ◽  
Nisar Ahmad ◽  
Sarfraz Hussain ◽  
Muzammil Khurshid ◽  
Safyan Majid
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Empirical Evidence ◽  
Economic Performance ◽  
Economic Conditions ◽  
The Political ◽  
Time Varying ◽  
Negative Effect ◽  
Multiple Challenges ◽  
The Impact

Purpose of the study: Stock markets have demonstrated varying reactions to IMF lending announcements across various economies. Announcements offered by IMF often be perceived negatively by the participants of the stock market, because of stringent conditions accompanied with the loan that may oppose the political and economic agenda of a borrowing nation. Thus, this study intends to investigate the impact of IMF’s announcements about extending loans to Pakistan on the performance of the Stock market in the debt-ridden economy. Methodology: For regular returns from 1997 to 2017, the benchmarking indexes of KSE-100 and 30 were used. Meanwhile, IMF lending arrangements are categorized into three respective dummies (standby, extended credit facility, and extended fund facility). The Generalized Autoregressive Conditional Heteroscedastic (GARCH) model was used to investigate the effect of IMF’s lending news on the regular stock returns. Main findings: The results show a statistically significant effect of the IMF’s News about lending arrangements on the performance of the stock market in Pakistan. Surprisingly, the negative effect of IMF lending announcements on the performance of the stock market in Pakistan implies that the loans extended by IMF are not professed by speculators as good for the economic performance of the economy. Application of this study: The findings of this study imply that simply extending loans is not a panacea for politically unstable and financially ruined nations. Lending strategies of IMF need to be favourable for the political and economic conditions of a borrowing country. Originality/ Novelty: As for as the novelty is concerned, the study has highlighted the time-varying impact of IMF lending announcements on the performance of the stock market in a financially fragile country where a newborn government facing multiple challenges has made its best effort to avoid borrowing from IMF.

scholarly journals The information content of US stock market factors

2020 ◽  
Vol 37 (2) ◽  
pp. 323-346
Author(s):  
Mohammed M. Elgammal ◽  
Fatma Ehab Ahmed ◽  
David G. McMillan
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Information Content ◽  
Predictive Power ◽  
Output Growth ◽  
Economic Conditions ◽  
Content Type ◽  
Economic Information ◽  
Market Factors ◽  
The Impact

Purpose The purpose of this paper is to consider the economic information content within several popular stock market factors and to the extent to which their movements are both explained by economic variables and can explain future output growth. Design/methodology/approach Using US stock portfolios from 1964 to 2019, the authors undertake three related exercises: whether a set of common factors contain independent predictive ability for stock returns, what economic and market variables explain movements in the factors and whether stock market factors have predictive power for future output growth. Findings The results show that several of the considered factors do not contain independent information for stock returns. Further, most of these factors are neither explained by economic conditions nor they provide any predictive power for future output growth. Thus, they appear to contain very little economic content. However, the results suggest that the impact of these factors is more prominent with higher macroeconomic risk (contractionary regime). Research limitations/implications The stock market factors are more likely to reflect existing market conditions and exhibit a weaker relation with economic conditions and do not act as a window on future behavior. Practical implications Fama and French three-factor model still have better explanations for stock returns and economic information more than any other models. Originality/value This paper contributes to the literature by examining whether a selection of factors provides unique information when modelling stock returns data. It also investigates what variables can predict movements in the stock market factors. Third, it examines whether the factors exhibit a link with subsequent economic output. This should establish whether the stock market factors contain useful information for stock returns and the macroeconomy or whether the significance of the factor is a result of chance. The results in this paper should advance our understanding of asset price movement and the links between the macroeconomy and financial markets and, thus, be of interest to academics, investors and policy-makers.

The Introduction of the “New Education” in Queensland, Australia

2003 ◽  
Vol 43 (3) ◽  
pp. 372-392 ◽  
Author(s):  
Peter Meadmore
Keyword(s):  
United States ◽  
Western Europe ◽  
Progressive Education ◽  
The United States ◽  
Pedagogical Practices ◽  
Economic Conditions ◽  
Industrialized Countries ◽  
Late Nineteenth ◽  
New Education ◽  
British Colonies

Reformist educational discourses of the late nineteenth and early twentieth centuries, usually referred to as the “new education” or progressive education, emanated from the industrialized countries of the United States and Western Europe. They emerged partly as a response to social and economic conditions but also as an attempt by educationists to ameliorate the regimentation and pedagogical limitations of nineteenth-century schooling. A considerable degree of cross-pollination of ideas across different countries occurred through visits, study, and the exchange of publications between educationists, allowing an international focus to emerge. The various discourses that constituted progressive education were at times confusing, even contradictory, and the use of these umbrella-type categories masked and distorted the diversity of pedagogical practices. These discourses also found their way into the Southern Hemisphere including British colonies such as Australia.

VENTURE CAPITAL INVESTMENTS IN EMERGING ECONOMIES: AN EMPIRICAL ANALYSIS

2005 ◽  
Vol 10 (03) ◽  
pp. 253-269 ◽  
Author(s):  
MEDHI SALEHIZADEH
Keyword(s):  
Stock Market ◽  
Emerging Economies ◽  
Emerging Market ◽  
Capital Inflows ◽  
Venture Capitalists ◽  
Capital Investments ◽  
Industrialized Countries ◽  
Micro Level ◽  
Venture Capital Investments

In the international arena an increasing number of entrepreneurs and venture capitalists have succeeded, yielding both micro-level financial rewards and macro-level prosperity and improved economic conditions for many industrialized countries. The next logical "group," with a potential to reap such benefits, is expected to be the emerging economies. This study tabulates and analyzes an emerging market VC-investment dataset, and then identifying and testing a number of independent economic and financial factors that explain such investments for a selected group of emerging countries. Based on 1990-2003 data covering 19 nations, the regression results show four of the five proposed variables, namely GDP per capita, long-term capital inflows, stock market listings, and a measure of stock market correlations, to be significant in explaining VC investments.

scholarly journals ТЕНДЕНЦІЇ РОЗВИТКУ ТА ФУНКЦІОНУВАННЯ ФОНДОВОГО РИНКУ УКРАЇНИ

World Science ◽  
2020 ◽  
Vol 2 (1(53)) ◽  
pp. 11-15
Author(s):  
Смагло О. В.
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Stock Exchange ◽  
The State ◽  
Industrialized Countries ◽  
State Of The Economy ◽  
Independent Sector ◽  
The Right

Today, the Stock market of Ukraine is at the stage of its formation and is lagging far behind the stock markets of industrialized countries. Against this background, the study of current conditions and peculiarities of development of stock exchange trading and infrastructure of Ukraine becomes extremely relevant for the national economy.The stock market of Ukraine is in a state today that ensures its transition from the sphere of servicing of capital circulation to an independent sector of the economy, since one of the main indicators of the state of the economy of any country is the stock market, which is very keenly responsive to any changes in the state. The functioning of the stock market depends primarily on strong infrastructure, which creates the right conditions for the issue and further circulation of securities.

scholarly journals Determinants of Banks’ Capital Structure: Evidence from Vietnamese Commercial Banks

2017 ◽  
Vol 9 (1) ◽  
pp. 351
Author(s):  
Tong Trung Tin ◽  
John Francis T Diaz
Keyword(s):  
Stock Market ◽  
Capital Structure ◽  
Commercial Banks ◽  
Fixed Effects ◽  
Regression Models ◽  
Ordinary Least Squares ◽  
Economic Conditions ◽  
Market Condition ◽  
Panel Regression ◽  
Panel Regression Models

This paper investigates the important factors influencing capital structure decisions. The study focuses on the bank leverage of thirty-one Vietnamese commercial banks from 2009 to 2014, because they play a key role as financial catalysts in the growing economy of Vietnam. The analysis employs multiple linear panel regression models, namely, Ordinary Least Squares (OLS), Fixed Effects (FE), and Random Effects (RE). This research examines five bank-specific factors (i.e., size, profitability, growth rate, taxation and business risk), and three financial market and economic variables (i.e., stock market condition, economy, and inflation) influencing capital structure with debt ratio as the dependent variable. Both the OLS and FE models agree that a Vietnamese bank’s size positively affects leverage, which means that the larger the bank, the more debt is incurred. Both models also determine that stock market and economic conditions have negative effects, which implies that in good market conditions, banks lessen their debt loads. In dividing Vietnamese commercial banks into three groups of sizes (i.e., large, medium-sized and small banks) based on chartered capital, both the OLS and RE models agree that size is a positively contributing factor to leverage. However, unlike large Vietnamese banks, medium-sized and small-sized banks tend to still carry a relatively high amount of debt because they are commonly ignored by the equity markets for reasons of illiquidity and instability, pushing them to rely on borrowing funds even to the point of having higher interest rates. Another interesting finding of this paper is that, only small-sized Vietnamese banks’ leverage is negatively affected by stock market and economic conditions. Findings of this paper are robust in using two panel regression models, and can help Vietnamese banks’ managers have a general perspective regarding capital structure determinants. This study also offers insights in creating appropriate strategies to controlling factors affecting banks’ leverage to achieve the target capital structure that minimizes the cost of capital and maximizes profitability.

Diet Quality, a Term Subject to Change over Time

2012 ◽  
Vol 82 (3) ◽  
pp. 144-147 ◽  
Author(s):  
Ibrahim Elmadfa ◽  
Alexa L. Meyer
Keyword(s):  
Diet Quality ◽  
Functional Foods ◽  
Disease Risk ◽  
Well Being ◽  
Industrialized Countries ◽  
Quality Factors ◽  
Long Time ◽  
Quality Diet ◽  
Important Quality ◽  
Health And Well Being

A high-quality diet is one of the foundations of health and well-being. For a long time in human history, diet was chiefly a source of energy and macronutrients meant to still hunger and give the strength for work and activities that were in general much harder than nowadays. Only few persons could afford to emphasize enjoyment. In the assessment of quality, organoleptic properties were major criteria to detect spoilage and oxidative deterioration of food. Today, food hygiene is a quality aspect that is often taken for granted by consumers, despite its lack being at the origin of most food-borne diseases. The discovery of micronutrients entailed fundamental changes of the concept of diet quality. However, non-essential food components with additional health functions were still barely known or not considered important until recently. With the high burden of obesity and its associated diseases on the rise, affluent, industrialized countries have developed an increased interest in these substances, which has led to the development of functional foods to optimize special body functions, reduce disease risk, or even contribute to therapeutic approaches. Indeed, nowadays, high contents of energy, fat, and sugar are factors associated with a lower quality of food, and products with reduced amounts of these components are valued by many consumers. At the same time, enjoyment and convenience are important quality factors, presenting food manufacturers with the dilemma of reconciling low fat content and applicability with good taste and appealing appearance. Functional foods offer an approach to address this challenge. Deeper insights into nutrient-gene interactions may enable personalized nutrition adapted to the special needs of individuals. However, so far, a varied healthy diet remains the best basis for health and well-being.

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