Management Solutions for Better Business Performance based on a Six Factor Model on VMD Stock Price – A Case in Medicine Industry in Vietnam

2021 ◽  
Vol 27 (02) ◽  
Keyword(s):  
Stock Price ◽  
Business Performance ◽  
Factor Model

scholarly journals Predictability of Stock Price Fluctuations Based on Business Relationships: A Comparison of Normal and the COVID-19 Pandemic Periods in Japan

2021 ◽  
Vol 13 (18) ◽  
pp. 10146
Author(s):  
Shoma Sakamoto ◽  
Shintaro Sengoku
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Factor Model ◽  
Customer Relationships ◽  
Business Relationships ◽  
Monthly Basis ◽  
Limited Region ◽  
Stock Price Prediction ◽  
Available Information ◽  
The Impact

The stock prices of a company are significantly influenced by changes of its business relationships. However, the effectiveness of stock price prediction based on such inter-firm business relationships has been partially confirmed in limited region and/or timeframe cases. In particular, it has not been verified under highly volatile market conditions such as those caused by the COVID-19 pandemic. To address these issues, we analyzed the impact of supplier–customer relationships on stock prices in the case of the Japanese stock market using The Fama-French three-factor model and publicly available information of business relationships. The subjects were classified into two conditions—normal and COVID-19—and the stock price predictability associated with changes of stock prices of related companies for both short and long holding periods. As a result, the significance of stock price predictability was confirmed on a daily and monthly basis in the given region. In addition, specific factors including a volatile event caused by a customer company, a stock price downturn, and the company size of a customer particularly improved stock price predictability in the pandemic.

Investment in IT and the Business Performance of Financial Companies

2006 ◽  
pp. 1-23 ◽  
Author(s):  
Irene Henriques ◽  
Perry Sadorsky
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Stock Price ◽  
Business Performance ◽  
Var Model ◽  
Strategic Investment ◽  
Vector Autoregressive ◽  
Landscape Information ◽  
General Business ◽  
The Relationship

Global information technology and competitive financial alliances are helping to reshape the business landscape. Information technology (IT) and well functioning financial markets play a crucial role in increasing economic growth and prosperity. The purpose of this study is to empirically investigate the relationship between investment in IT and the business performance of financial companies. A vector autoregressive (VAR) model is used to test hypotheses one (increased spending on IT increases financial performance) and two (increased financial performance increases spending on IT) where financial performance is assumed to be adequately measured by stock price returns. Control variables for general business cycle conditions are included in the analysis. Our results show that the greatest benefits from increases in technology accrue to insurance and other financial companies. Managers of these companies could increase their business performance through strategic investment and use of IT.

scholarly journals How Well the Implementation of Carhart Model in Market Overreaction Condition? Evidence in Indonesia Stock Exchange

2018 ◽  
Vol 7 (4.38) ◽  
pp. 928
Author(s):  
Ferikawita M. Sembiring ◽  
. .
Keyword(s):  
Stock Price ◽  
Factor Model ◽  
Stock Exchange ◽  
Market Condition ◽  
Portfolio Returns ◽  
Price Momentum ◽  
Book To Market Ratio ◽  
The Difference ◽  
Fama And French ◽  
Portfolio Return

This study aims to determine an ability of the four-factor model of Carhart in explaining the portfolio returns formed in condition of market overreaction. The four-factor model is basically a model proposed by Fama and French and then developed by Carhart which adds price momentum factor into the model. While market overreaction is a market condition caused by excessive reactions from investors when receiving information. The portfolios used are the winner and loser formed based on the returns of each portfolio to the average of the returns. Both portfolio consist are the stocks of non-financial sector in Indonesia Stock Exchange during the period July 2005 - December 2015. The data used are the Composite Stock Price Index (CSPI), stock market capitalization, book to market ratio of each shares and the difference of returns of the loser over of the winner, as an indicator of price momentum factor that formed in market overreaction condition characterized by occurance the reversal of returns.The results show that the four-factor model can explain the portfolio return well. Implementation of the GARCH (1,1) model to improve the accuracy of the estimation results also shows similar findings.     

scholarly journals The Fama and French three-factor model in developing markets: evidence from the Chinese markets

2018 ◽  
Vol 15 (1) ◽  
pp. 46-57
Author(s):  
Man Li ◽  
Michael Dempsey
Keyword(s):  
Principal Component Analysis ◽  
Firm Size ◽  
Stock Price ◽  
Factor Model ◽  
Principal Component ◽  
Price Formation ◽  
Developing Markets ◽  
Chinese Markets ◽  
Fama And French ◽  
Three Factor

The authors study the Fama and French three-factor (FF-3F) model in relation to a developing market. To this end, they consider Chinese stock markets over the period 1995–2008, which is to say, over a period when these markets are recognized as “developing” markets influenced by speculative activity. The authors find that the model appears to be working as a form of “principal component analysis for the determinants of stock price formation with book-to-market (B/M) as the “variable of choice” on account of that it captures the earnings-to-price (E/P), cash-flow-to-price (C/P) and sales-to-price (S/P) variables while remaining largely uncorrelated with firm size (whereas E/P, C/P and S/P are themselves positively correlated with firm size). The variables, however, are unrelated to risk as represented by market exposure, volatility, or leverage.

scholarly journals On Effects of Macroeconomic Factors on Rate of Return on Stocks on HoChiMinh Stock Exchange

2013 ◽  
Vol 218 ◽  
pp. 48-61
Author(s):  
ANH VÕ THỊ THÚY ◽  
HẢI NGUYỄN THANH
Keyword(s):  
Business Performance ◽  
Factor Model ◽  
Stock Exchange ◽  
Random Effect ◽  
Industrial Sector ◽  
Rate Of Return ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Two Factors ◽  
The Impact

Using factor model and fixed or random effect approaches, this article studies the factors affecting the rate of return on the stocks listed on the Vietnamese stock market. The results show that the rate of return is affected by the two factors: inflation and the Nikkei index as an indicator of regional economy. The impact of inflation is much more powerful. The strongest impact of the unexpected inflation is found in industrial sector and consumption while enterprises with good business performance only suffer a milder effect. The impact of Nikkei index on local stocks is rather weak but less dispersed.

scholarly journals Risk Management Under Impacts of Macro Economic Factors Ina Big Seafood Ex-Import Firm -Angiang Fisheries Ex-Import Jsc. In Vietnam

Management ◽  
2021 ◽  
Vol 25 (1) ◽  
pp. 172-185
Author(s):  
Nguyen Ngoc Thach ◽  
Dinh Tran Ngoc Huy
Keyword(s):  
Stock Price ◽  
Factor Model ◽  
Value Added ◽  
Joint Stock Company ◽  
Research Model ◽  
Stock Company ◽  
The Us ◽  
Research Gap ◽  
Seafood Processing ◽  
Value Added Products

Summary AnGiang Fisheries Ex-Import Joint Stock Company (AGF) was established in 2001. Agifish has traditionally beena leader in the fields of production and business activities, scientific research in the field of fingerling production, seafood processing technology and the development of value added products processed from Basa fish, tra fish. Agifish cares about buildinga spirit of solidarity between leaders, managers and workers striving for the development of the Company. Because we figure out there isa research gap in which many previous studies forgot to explore both internal and external macroeconomic elements and their impacts on stock price of Agifish (AGF),a big Vietnam fisheries firm, in the context Viet Nam and the US economies receive impacts from global economic crisis. With the using of quantitative analysis and statistics, regression OLS, together with qualitative methods including synthesis, comparison and explanatory methods, authors recognize that, ina six factor model, AGF stock price goes up together with effects from increase in GDP growth and lending rate declines. Last but not least, our research model can be expanded to other markets.

scholarly journals Plans for better business performance of Sony in Japan - and suggestions for management and financial accounting transparency

Management ◽  
2020 ◽  
Vol 24 (2) ◽  
pp. 132-145
Author(s):  
Nguyen Duy Dat ◽  
Nguyen Thi Ngoc Lan ◽  
Dinh Tran Ngoc Huy ◽  
Ly Lan Yen ◽  
Nguyen Tien Dung ◽  
...  
Keyword(s):  
Risk Management ◽  
Quantitative Research ◽  
Business Performance ◽  
Factor Model ◽  
Financial Accounting ◽  
Technology System ◽  
Net Profit ◽  
Management Plans ◽  
Impact Coefficient ◽  
Risk Free Rate

AbstractThrough years Sony In Japan has shown success in bringing to the market high quality products, and via technical inventions. Today risk management is one of vital issues in Sony to maintain its reputation in global markets. The purpose of this study is to find out impacts of economic factors at macro level on net profit of a big technological giant like Sony.We found that movement of net profit in big firms such as Sony will reflect the business health of technology system and the whole economy. The results of quantitative research, in a seven factor model, show that the increase in inflation, GDP (increasing too much) and lending rate and reducing risk free rate has a significant effect on reducing Sony net profit with the highest impact coefficient, the second is decreasing the exchange rate.Last but not least, this study proposes risk management solutions and business management plans to lower business risks, cost and enhance its net profit.

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