scholarly journals Accounting Reforms and Foreign Portfolio Investment in China: An Empirical Investigation

2017 ◽  
Vol 9 (2) ◽  
pp. 60
Author(s):  
Muhammad Umar Draz ◽  
Fayyaz Ahmad
Keyword(s):  
Choice Model ◽  
Listed Companies ◽  
Accounting System ◽  
Portfolio Investment ◽  
Causality Test ◽  
Foreign Portfolio Investment ◽  
Explanatory Variables ◽  
Binary Choice Model ◽  
Investment In China ◽  
The Impact

 The relationship between foreign portfolio investment (FPI) and various macroeconomic variables of China has been discussed in the existing literature. However, the link between China’s accounting reforms and FPI is yet to be explored. This study intends to discover the impact of changes in China’s accounting system and convergence of its domestic accounting standards (henceforth referred to as accounting reforms) on FPI. We have used Binary Choice Model in Eviews for two decades’ data. In our analyses, FPI has been taken as dependent variable, whereas accounting reforms, annual increase in listed companies, GDP growth of China and financial crises are taken as explanatory variables. The results of our model reveal a significant relationship between accounting reforms and FPI; moreover, Granger causality test shows a significant causal relationship between yearly increase in listed companies and FPI. Our findings are theoretically rational and can be useful for both investors and the policymakers.

scholarly journals Do External and Internal Crises Affect Foreign Portfolio Inflows? The Case of China and India

2016 ◽  
Vol 8 (7) ◽  
pp. 149
Author(s):  
Fayyaz Ahmad ◽  
Muhammad Umar Draz ◽  
Su-Chang Yang
Keyword(s):  
Choice Model ◽  
Gdp Growth ◽  
Portfolio Investment ◽  
Economic Sectors ◽  
Foreign Portfolio Investment ◽  
Dummy Variable ◽  
China And India ◽  
Independent Variable ◽  
Binary Choice Model ◽  
The Relationship

This study examines the relationship between external and internal crisis (EIC) and Foreign Portfolio Investment (FPI) net inflows in China and India. We have applied Binary Choice Model taking the EIC as a dummy variable. GDP growth is an independent variable in our model that indicates the combined performance of economic sectors. The results suggest that EIC exert a significant impact on the FPI net inflows, but the nature of internal issues is different for both countries. We find a little association between GDP growth and net FPI inflows.

scholarly journals Gender diversity and financial performance of the stock exchange listed companies

2020 ◽  
Vol 17 (4, Special Issue) ◽  
pp. 257-267
Author(s):  
Yasmina Jaber
Keyword(s):  
Stock Exchange ◽  
Critical Mass ◽  
Gender Diversity ◽  
Listed Companies ◽  
Least Square ◽  
Bivariate Analysis ◽  
Explanatory Variables ◽  
Muslim Countries ◽  
The Board Of Directors ◽  
The Impact

Tunisia is considered one of the first Arab Muslim countries to have the freedom of women and their participation in the economic sphere. Despite these advancements in women’s freedom, Tunisia still has a few women in positions of responsibility in the business. Our reflection on gender diversity will, therefore, be studied from the angle of the contribution of women to the performance of the company. Our research uses different gender diversity proxies such as the percentage of women on the board, a binary variable, and two additional indices of the diversity the Blau and Shannon indices. In order to properly study this impact, we have mainly used bivariate analysis by studying the association between endogenous and explanatory variables and multivariate analysis by applying double least square regression (2SLS). Using the panel data methodology and controlling for endogeneity, the results show that gender diversity on the board of directors does not have an impact on the performance of listed companies measured by Tobin’s Q. However, if critical mass is reached, the impact on gender diversity becomes positive and significant.

Debt Financing, Corporate Governance and Overinvestment

2011 ◽  
Vol 219-220 ◽  
pp. 1081-1084
Author(s):  
Lei Zhu ◽  
Bei Tang
Keyword(s):  
Listed Companies ◽  
Free Cash Flow ◽  
Debt Maturity ◽  
Debt Financing ◽  
Manufacturing Companies ◽  
Hard Constraint ◽  
Maturity Mismatching ◽  
Chinese Listed Companies ◽  
Investment In China ◽  
The Impact

This paper examines the impact of debt financing on overinvestment in Chinese listed companies. Using an accounting-based framework to measure over-investment and free cash flow, we find evidence that, debt financing can’t mitigate overinvestment in Chinese listed manufacturing companies. Further tests examine whether firm’s governance structures are associated with overinvestment. The evidence suggests that governance factors also can’t mitigate over-investment in China. Reasons lie that hard constraint of debt financing doesn’t play its role in China. There also exists assets maturity and debt maturity mismatching problems in Chinese manufacturing listed companies.

scholarly journals The Relationship between Foreign Portfolio Investment, Foreign Direct Investment and Economic Performance of Nigerian Economy: (1980-2017): An Empirical Analysis

2019 ◽  
Author(s):  
Ekine,D.I, Ewubare ◽  
Dennis Brown ◽  
Ajie, Charity
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Incentives ◽  
Least Square ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
External Resources ◽  
Development Indicator ◽  
Stable Economy ◽  
The Impact

The study examined the impact of foreign portfolio investment and Foreign Direct Investment on the performance of the Nigerian Economy over a period of 1980-2017. The data used were purely secondary sourced from the central Bank of Nigeria statistical Bulletin and World Bank Development indicator. The ordinary least square (OLS) regression analysis was used. The findings revealed that the performance of the Nigerian Economy is directly related to inflow of foreign portfolio investment and foreign direct investment and it is also statistically significant at 5% level. This means that a good performance of the economy depends on the inflow of these variables, or that the variables serve as an engine of economic growth. The study therefore recommends that policy makers should work on improvement of economic incentives capable of mobilizing external resources to the country to engender macroeconomic stability. A stable economy will attract foreign investment and this result to increased inflow of foreign capital.

scholarly journals Foreign Portfolio Investment and Economic Growth in Malaysia

2009 ◽  
Vol 48 (2) ◽  
pp. 109-123 ◽  
Author(s):  
Jarita Duasa ◽  
Salina H. Kassim
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Economic Performance ◽  
Jel Classification ◽  
Sustainable Growth ◽  
Portfolio Investment ◽  
Impulse Response Functions ◽  
Causality Test ◽  
Foreign Portfolio Investment ◽  
The Relationship

This study examines the relationship between foreign portfolio investment (FPI) and Malaysia’s economic performance. In particular, the study analyses the relationship between FPI and real gross domestic product (GDP) using the widely adopted Granger causality test and the more recent Toda and Yamamoto’s (1995) non-causality test to establish the direction of causation between the two variables. Similar method is also applied on the relationship between volatility of FPI and real GDP. Additionally, the study uses an innovation accounting by simulating variance decompositions and impulse response functions for further inferences. Using quarterly data covering the period from 1991 to 2006, the study finds evidence that economic growth causes changes in the FPI and its volatility and not vice versa.. The findings suggest that economic performance is the major pull factor in attracting FPI into the country. Thus, it must be ensured that the Malaysian economy remains on a healthy and sustainable growth path so as to maintain investor confidence in the economy. JEL classification: G15, C32, C12 Keywords: Foreign Portfolio Investment, Economic Growth, Granger Causality, Toda-Yamamoto Non-causality, Variance Decomposition

The Impact of Exchange Rate on Foreign Private Investment in Nigeria

2018 ◽  
Vol 2 (2) ◽  
pp. 19-32 ◽  
Author(s):  
Leonard Nosa Aisien
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Private Investment ◽  
Estimation Procedure ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Private Investment ◽  
The Exchange Rate ◽  
The Impact

The study examined the impact of exchange rate on foreign private investment using quarterly time series date from Nigeria for the period 2007 to 2017. Foreign private investment in the study was disaggregated into foreign direct investment and foreign portfolio investment in order to ascertain their separate reactions to changes in the exchange rate of the naira against the US dollars. The empirical analysis was based on the VAR estimation procedure using three lagged periods adopted on the basis of various lag order selection criteria. The empirical result revealed that devaluation/depreciation of the naira adversely affects foreign direct investment and foreign portfolio investment in Nigeria. Increased in the size of the domestic market and development of the financial sector were found to stimulate foreign private investment while high inflation rate in the domestic economy discourages foreign private investment in Nigeria. The study, therefore, recommended among others that the Central Bank of Nigeria should continue to initiate more proactive policy intervention policies to stabilize the exchange rate of the naira in order to stimulate more foreign private investment in Nigeria.  

scholarly journals The Effects on Financial Leverage and Performance: The IFRS 16

2018 ◽  
Vol 11 (8) ◽  
pp. 76
Author(s):  
Francesca Magli ◽  
Alberto Nobolo ◽  
Matteo Ogliari
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Listed Companies ◽  
Accounting System ◽  
Financial Leverage ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
And Performance ◽  
The Impact

This paper analyses the potential impacts of the introduction of a new accounting standard, International Financial Reporting Standard 16 (IFRS 16) – Leases, on financial leverage and performance of entities. This new accounting standard was introduced on 13 January 2016, and will become effective on 1 January 2019; it will have material impacts on the financial statements of listed companies adopting IFRS and change the basic principles of the current accounting system. Our aim is to estimate the impacts of the application of IFRS 16 on listed issuers of financial statements and the different impacts that the new standard could have in different activity sectors. This research estimates the effects of IFRS 16 on the ratios of debt/total assets, EBITDA/revenues and debt/equity. The conclusions summarize the effects on entity performance and net financial position. The research shows that in the financial statements of the lessee, there will be important changes. In particular, in the balance sheet, there will be an increase in lease assets, an increase in financial liabilities and a decrease in equity, while in the income statement, there will be an increase in EBITDA and an increase in finance costs. The impact of the application of IFRS 16 will be different depending on the use of operating lease contracts among the different business sectors. Leases are an important and flexible source of financing; listed companies, using IFRS and U.S. GAAP, are estimated to have around US$ 3.3 trillion in lease commitments. Finally, this study aims to analyse the possible impacts of communication of entities, focusing on alternative performance measures.

Global financial crisis, foreign portfolio investment and volatility

2020 ◽  
Vol 32 (2) ◽  
pp. 177-195
Author(s):  
Abdelkader Derbali ◽  
Ali Lamouchi
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Emerging Markets ◽  
Global Financial Crisis ◽  
Portfolio Investment ◽  
Content Type ◽  
Foreign Portfolio Investment ◽  
Crisis Period ◽  
Asian Emerging Markets ◽  
The Impact

Purpose The purpose of this paper is to understand and compare the extent and nature of the impact of foreign portfolio investment (FPI) on the stock market volatility, particularly in the Southeast Asian emerging markets, and compare that against the corresponding experience of Indian economy, in the context of a global financial crisis of the recent past. Design/methodology/approach The Asian emerging markets are now being perceived as becoming financially more and more vulnerable to international events because of their growing exposure to unstable foreign investment flows. The daily net FPI inflow and the daily leading stock market composite index of four countries, namely, Thailand, the Philippines, Indonesia and India, have been analyzed using autoregressive conditional heteroscedasticity (ARCH)-generalized ARCH group of models dividing the study period from 2000 to 2014 among pre-crisis, crisis and post-crisis period separately. Findings The study reveals that the net inflow of FPI has been a significant determinant of stock market returns in all countries. The impact of volatility spillover from the FPI market to the stock market in the sample countries has been found to be different under different market conditions. The past information and volatility clustering have been significantly influencing the stock market return volatilities of all these Southeast Asian countries on average. Originality/value However, there are significant country-wise differences in the relative importance and direction of the relationship of each of these effects with the volatility of the FPI and the stock markets. These effects have been different in these four different markets and they have significantly altered in strength and significance during the global financial crisis and in the post-financial crisis period.

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