scholarly journals The Impact of Corporate Governance on Stock Price and Trade Volume

2016 ◽  
Vol 6 (2) ◽  
pp. 27 ◽  
Author(s):  
Wafaa Salah Mohamed ◽  
May M. Elewa
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Stock Prices ◽  
Stock Price ◽  
Trading Volume ◽  
Stock Exchange ◽  
Trade Volume ◽  
Publicly Traded ◽  
Publicly Traded Firms ◽  
The Impact

The purpose of this paper is to investigate whether corporate governance is associated with stock prices and trade volume for 62 publicly traded firms on the Egyptian Stock Exchange during 2007-2014. The authors hypothesize that firms with strong corporate governance have a significant impact on stock prices and trade volume. To examine the associations, a multiple regression analysis is used. Consistent with the first hypothesis, this study finds firms with strong corporate governance have a significant impact on stock prices while has no significant impact on trade volume. Findings indicate that quality of corporate governance can affect firms' stock price while trading volume is not affected by the strength of corporate governance. The results suggest that Egyptian firms should improve their corporate governance as it has a significant effect on firms’ value. Also, providing diverse sources of financial information other than the financial statements and to ensure the presence of high-quality financial reporting and strong investor protection. This study is carried on non-financial firms only. This research is important to regulators and standard setters as it shows the information that affects investors’ decisions and the importance of its disclosure. It pays attention of standard setters for setting a corporate governance framework for improving the level of disclosures of publicly traded firms in Egypt.

scholarly journals ADOPTING SOUND CORPORATE GOVERNANCE PRINCIPLES – A PROSPECTIVE APPROACН TOWARDS TНE IMPACT ON STOCK PRICES OF ROMANIAN LISTED COMPANIES

2020 ◽  
pp. 33-41
Author(s):  
I. Pop (Anghel)
Keyword(s):  
Corporate Governance ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Risk Mitigation ◽  
Listed Companies ◽  
Share Price ◽  
Assessment Index ◽  
Stock Market Performance ◽  
The Impact

Sound economic developments and successful businesses are conditioned by embracing proper corporate governance principles furthered by their proper implementation. There is a strong body of research that encompasses finance and accounting tools to establish valid links between qualitative corporate governance fundamentals and stock market performance of listed companies, that stem from accountability, operational integrity, transparency, management and board efficiency improvements, risk mitigation and overall better decision-making endeavours. The aim of the present research is to assess the impact of adopting sound corporate governance principles on the stock price of companies traded on the Bucharest Stock Exchange. Following our empirical efforts, the results of our regression study reveal the clear connection between price to book ratio and to our corporate governance assessment index and to a lesser extent the connection between share price and our corporate governance assessment index.

scholarly journals The importance of information upon applying IFRS in financial entities that trade at the Colombian stock market

2019 ◽  
Vol 21 (34) ◽  
pp. 137-152
Author(s):  
Miguel Angel Laverde Sarmiento ◽  
Jorge Fernando Garcia Carrillo ◽  
Juan Carlos Lezama Palomino ◽  
Alejandra Patiño Jacinto
Keyword(s):  
Financial Reporting ◽  
Stock Price ◽  
Stock Exchange ◽  
Regulatory Framework ◽  
General Level ◽  
Market Exchange ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Before And After ◽  
The Impact

The aim of this research is to determine whether the implementation of the International Financial Reporting Standards (IFRS) in the companies of the financial sector listed on the Colombian Stock Exchange has greater relevance compared to the previous accounting regulatory framework known as Generally Accepted Accounting Principles (GAAP) in Colombia, for the years 2009 to 2016. Taking into account the concept of valorative relevance that indicates that the accounting information is relevant if it affects the stock price reflected in the capital market exchange. To determine this relationship, an adaptation of the model proposed by Ohlson (1995) is used, because it is the most frequently used to measure relevance. The modifications made to the model were to include accounting variables of financial instruments of assets and liabilities to better measure the impact of the IFRS. On a general level, the conclusion is reached that the valorative relevance of financial companies listed on the stock exchange between 2009 and 2016, does not change due to the application of the IFRS. The results are because the regulation that financial companies that are listed on the stock exchange of Colombia are subject to has contributed to the relevance being maintained before and after the application of the new regulatory framework. however, when carrying out the study of the information taking into account only the variables and taking into account the regulations under the IFRS, they present a greater degree of significance.

scholarly journals THE XBRL TECHNOLOGY AND MARKET EFFICIENCY IN BANKING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX)

2020 ◽  
Vol 4 (1) ◽  
pp. 26
Author(s):  
Erni Jayani ◽  
Jumiadi Abdi Winata ◽  
Khairunnisa Harahap
Keyword(s):  
Information Asymmetry ◽  
Market Efficiency ◽  
Financial Reporting ◽  
Stock Prices ◽  
Trading Volume ◽  
Sampling Method ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Accurate Information ◽  
Stock Trading

The problem in this research is the need for fast and accurate information in the format of the presentation of financial statements resulting in the distribution of information, and data management can be problematic. Therefore, a format for financial reporting systems, namely Extensible Business Reporting Language (XBRL), was formed. The purpose of this study was to determine the effect of XBRL technology, stock prices, Return on Assets (ROA), and institutional ownership on market efficiency (information asymmetry and stock trading volume). The population and sample of this study are banking companies listed on the Indonesia Stock Exchange from 2015-2016. The sampling method using a purposive sampling method and obtained a sample of 42 companies. Data collection techniques are carried out by taking data from the Indonesia Stock Exchange website (www.idx.co.id) and the site http://finance.yahoo.com. Data were analyzed with multiple regression tests after being declared normal with the normality test and though using SPSS 20. The results of this study simultaneously stated that XBRL technology, stock prices, ROA, and institutional ownership together have an influence on information asymmetry and stock trading volume. From the results of the study, it can be concluded that XBRL technology, stock prices, ROA, and institutional ownership cause a decrease in the level of information asymmetry and trading volume. This result also states that the company is in excellent condition when the value of information asymmetry decreases, but it is not good when the trading volume of its shares also decreases. Keywords: XBRL Technology; Stock Prices; Market Efficiency; Information Asymmetry; Stock Trading Volume. 

scholarly journals Causal Relation Between Stock Market Performance and Firm Investment in China: Mediating Role of Information Asymmetry

SAGE Open ◽  
2019 ◽  
Vol 9 (4) ◽  
pp. 215824401988514
Author(s):  
Ghulam Hussain Khan Zaigham ◽  
Xiangning Wang ◽  
Haji Suleman Ali
Keyword(s):  
Information Asymmetry ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Causal Relation ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Price Performance ◽  
Stock Market Performance ◽  
The Impact

The main objectives of this study are to examine the impact of stock price performance on firm’s investment and to investigate the counter impact of changes in investment expenditures on stock price performance. The random effects model was applied on the panel data of Chinese manufacturing firms listed at the Shanghai Stock Exchange and the Shenzhen Stock Exchange during the period 2002 to 2016. The sample contains 398 firms with 5,970 observations. Although there is a statistically significant and negative relationship between stock price and investment expenditures, the impact of stock price on investment expenditures is far greater than that of investment expenditures on stock price. Information asymmetry positively mediates both investment sensitivity to stock prices and stock prices sensitivity to investment. This study is a valuable contribution toward the analysis of investment decision making by manufacturing firms in China. It also provides guidelines for investors to assess the informational status of the capital market before making investment decisions and to comprehensively understand the different decisions made by firms with regard to the issue of new stocks and the indirect information attached with such issues.

Analysis of Institutional Factors Affecting Share Prices: The Case of National Stock Exchange

2018 ◽  
Vol 19 (3) ◽  
pp. 707-721 ◽  
Author(s):  
Neeraj Nautiyal ◽  
P. C. Kavidayal
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Transition Period ◽  
Stock Exchange ◽  
Market Price ◽  
Negative Relationship ◽  
Value Added ◽  
Price Variation ◽  
Wide Range ◽  
The Impact

This study offers empirical findings on the impact of institutional variables on firm’s stock market price performance. In order to identify the influence of companies financial on NIFTY 50 Index, our sample consists of balanced panel of 30 actively traded companies (that becomes the study’s index representative) over a massive transition period, 1995–2014. Attempts have been made with a wide range of econometric models and estimators, from the relatively straightforward to (static) more complex (dynamic panel analyses) to deal with the relevant econometric issues. Results indicate that increasing debt in capital structure does not establish any significant relation with the stock prices. Earnings per share (EPS) shows a poor explanation of price variation. Economic value added (EVA) indicates a positive relation with current as well as previous year’s stock price performances. However, dividend payout (DIVP) and dividend per share (DPS) achieve negative relationship at moderately significant level. The present study confirms that performance of companies fundamental ratios will be essential and immensely helpful to investors and analysts in assessing the better stocks that belong to different industry groups.

Terrorism and Stock Market Linkages: An Empirical Study from a Front-line State

2017 ◽  
Vol 18 (2) ◽  
pp. 365-378 ◽  
Author(s):  
Imtiaz Arif ◽  
Tahir Suleman
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Negative Impact ◽  
Stock Exchange ◽  
Series Data ◽  
Front Line ◽  
Long Run ◽  
Factor Index ◽  
The Impact

This article investigates the impact of prolonged terrorist activities on stock prices of different sectors listed in the Karachi Stock Exchange (KSE) by using the newly developed terrorism impact factor index with lingering effect (TIFL) and monthly time series data from 2002 (January) to 2011 (December). Johansen and Juselius (JJ) cointegration revealed a long-run relationship between terrorism and stock price. Normalized cointegration vectors are used to test the effect of terrorism on stock price. Results demonstrate a significantly mixed positive and negative impact of prolonged terrorism on stock prices of different sectors and show that the market has not become insensitive to the prolonged terrorist attacks.

scholarly journals Post-Earnings Announcement Drift in Greece

2015 ◽  
Vol 18 (03) ◽  
pp. 1550019 ◽  
Author(s):  
William Forbes ◽  
George Giannopoulos
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Stock Exchange ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Earnings Announcement ◽  
Financial Reporting Standards ◽  
Post Earnings Announcement Drift ◽  
Athens Stock Exchange ◽  
The Impact

This paper presents evidence regarding the post-earnings announcement drift (PEAD) anomaly for the Greek market in the years 2000–2006 (covering earnings announcements in the years 2001–2007). The impact of the introduction of International Financial Reporting Standards on the size and prevalence of the PEAD anomaly is examined. Unlike recent evidence for the US market we find PEAD to be alive and well, and of growing importance in our Greek sample. It may be the adoption of international financial reporting standards (IFRS) has served to reduce earnings predictability in Greece and thus enhance PEAD in the Athens stock exchange (ASE) market. This contrasts strongly with US evidence that the post-earnings-announcement drift anomaly is now waning as more efficient markets and smarter, fundamentals-based, traders arbitrage its impact on stock prices.

scholarly journals The Impact of Corona Virus Disease 2019 (COVID-19) on Indonesia Property Stock Index

2021 ◽  
Vol 4 (2) ◽  
pp. 85-96
Author(s):  
Kevin Ronaldo Gotama ◽  
Njo Anastasia
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Virus Disease ◽  
Sampling Technique ◽  
Stock Index ◽  
Event Analysis ◽  
Corona Virus ◽  
Before And After ◽  
The Impact

A promising investment in the property sector is due to appreciation in property value. As an economic instrument, the stock market, inseparable from different environmental factors, was triggered by incident in Wuhan, Hubei Province, China, an outbreak of acute respiratory tract infection 2 (SARS-CoV-2) in December 2019 and then spread across China. This study is a comparative study on the stock index of the property sector on the stock exchange of countries affected by the Corona Virus Disease 2019 (COVID-19) case, with a purposive sampling technique according to certain criteria for sample selection. The event analysis was performed by analyzing market reaction; with COVID-19 incident effect as one of the event tests, the stock price index. The findings of the study indicate that there is an index response to the incident of COVID-19. The reflected reaction shows in the abnormal return and trade volume activity before and after the incident. Thus, this study is expected to be taken into consideration for stock investors regarding the impact of the Corona Virus Disease 2019 (COVID-19) pandemic on stock prices, by providing an overview of changes in stock prices during the monitoring period, so that they can make investment decisions in the period before and after incident.

scholarly journals Enterprise value and disclosure level: Evidences in the Brazilian market

2010 ◽  
Vol 8 (1) ◽  
pp. 56-61
Author(s):  
Fabio Gallo Garcia ◽  
Elmo Tambosi Filho ◽  
Luiz Maurício Franco Moreira
Keyword(s):  
Corporate Governance ◽  
Value Creation ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Best Interests ◽  
American Depositary Receipts ◽  
Financial Accounting Standards Board ◽  
Corporate Transparency ◽  
Depositary Receipts

There is a strong tendency in global markets towards an enhanced level of corporate transparency regarding the activities of companies and, as a result, information on their performance. The Purpose of this study is to analyze the relationship between greater disclosure levels and shareholder value creation. Increasing levels of disclosure are required from companies‟ management before shareholders and the society in general. Obscure practices that fail to take into consideration the best interests of shareholders increase risks and cause shares to lose liquidity. The São Paulo Stock Exchange‟s “Novo Mercado” (“New Market”) emerged from the intent to improve the Brazilian stock market by adopting best practices in corporate governance, adding transparency to disclosed information, and heightening the respect for the interests of shareholders, whether they may be minority or not. The “Novo Mercado” intends to foster a differentiated environment in which companies committed to corporate governance are recognized and can benefit from better stock prices, resulting in lower placement costs and increased liquidity. Our research will assume that companies with American Depositary Receipts - ADRs are committed to a higher level of disclosure as a result of the requirements of the Security Exchange Commission – SEC, and the Financial Accounting Standards Board - FASB; an empiric study about these firms will be performed. We will determine, through a Study Event concerned with cases where ADR have been issued, which consequences of the commitment to higher levels of disclosure as regards shareholder are responsible for value creation, and what are the reflections on the stock price quoted in the Brazilian market.

scholarly journals The Impact of Corporate Governance on Earning Management of Non-Financial Firms: Evidence from Pakistan

2021 ◽  
Vol 10 (1) ◽  
pp. 304-312
Author(s):  
MUHAMMAD TAHIR KHAN ◽  
IHTESHAM KHAN ◽  
SHAH RAZA KHAN
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Stock Exchange ◽  
Research Work ◽  
Fixed Effect Model ◽  
Earnings Information ◽  
Financial Firms ◽  
The Impact

The main objective of the firm is to maximize the shareholder’s wealth; to achieve this objective the management indulge the earnings information by manipulation practices such practices reduce investors’ confidence. Furthermore, a hypothetical dispute recommends that a better quality of financial reporting reduce the information asymmetry, by refining the corporate governance compliance, result in reducing earnings management practices. Thus the main aim of this study is to explore the impact of corporate governance on earnings management by using panel data sample of 257 non-financial firms listed in Pakistan stock exchange for the period of 2012 to 2019 through Fixed effect model along with control variables. The results disclose that the CG system of Pakistan negatively and significantly impacts the EM activities of the companies registered in Pakistan stock exchange. Hence, concludes that the CG system is more effective to prevent the EM process. The entire results are seamless with prior research work that the effective CG scheme of the firms controls the EM and collapse of businesses. Keywords: Earnings Management, Corporate Governance, Corporate Governance Index.

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