scholarly journals Performance Analysis of Multinational M&A of Listed Companies--Based on Zipf Stock Price-Fundamentals Dynamic Evaluation Model’s Construction

2018 ◽  
Vol 10 (7) ◽  
pp. 64
Author(s):  
Wenjie Liu
Keyword(s):  
Stock Price ◽  
Evaluation Model ◽  
Listed Companies ◽  
Fixed Effect Model ◽  
Cumulative Distribution ◽  
Dynamic Evaluation ◽  
Effect Model ◽  
Before And After ◽  
Abnormal Rate ◽  
The Impact

In this paper, the multinational M&A of listed companies are taken as the research objects. The Stock Price-Fundamentals Dynamic Evaluation Model (SF-DEM) based on Zipf’s law is constructed. Through the complementary cumulative distribution, we analyze the stock price and fundamentals distribution and changes of listed companies before and after multinational M&A. The two-way fixed effect model is introduced to verify the SF-DEM model. The research shows that multinational M&A have got a positive response from the market. Short-term average cumulative abnormal rate of return reached 2.8% after the announcement day, which had a long-term synergy and promoted companies’ value; As investors expected that high-priced stocks have a poorer growth and higher thresholds, multinational M&A have a significant and lasting effect on the low-priced companies, while the impact on high-priced stocks is small and short; 80% of the price changes were determined by fundamentals, and reached 85% after M&A. Multinational M&A enhances investors’ expectations and then shows the value investment trends. 80/20 law is not affected by M&A, companies have strong heterogeneity and large differences.

scholarly journals Can the Famous University Experience of Top Managers Improve Corporate Performance? Evidence from China

2019 ◽  
Vol 11 (24) ◽  
pp. 6975
Author(s):  
Weifeng Xu ◽  
Qingsong Ruan ◽  
Chang Liu
Keyword(s):  
Corporate Performance ◽  
Top Management Team ◽  
Listed Companies ◽  
Fixed Effect Model ◽  
Top Managers ◽  
Effect Model ◽  
University Experience ◽  
The Impact ◽  
Business Complexity ◽  
Positive Effect

With the continuous improvement of China’s overall education level, the number of top managers with famous university experience in listed companies has been increasing. The question then becomes whether the performance of the listed companies is better if there are more top managers with famous university experience in the top management team (TMT). Based on the sample of listed companies in China from 2008 to 2018, we adopted the two-way fixed effect model and panel propensity score matching (Panel-PSM) methodology to examine the impact of top managers with famous university experience on corporate performance and its mechanism. We found that the higher the proportion of top managers with famous university experience in the TMT, the better the corporate performance will be, and this positive effect is larger in companies with high business complexity. We also found that this effect is mediated by overconfidence of the TMT. The proportion of top managers with famous university experience in the TMT will inhibit the overconfidence of the TMT, which will ultimately benefit corporate performance.

scholarly journals The Impact of Dividend Policy on Stock Price Volatility in Pakistan

2019 ◽  
Vol IV (I) ◽  
pp. 506-515
Author(s):  
Ziaullah Shah ◽  
Shehzad Khan ◽  
Muhammad Faizan Malik
Keyword(s):  
Panel Data ◽  
Stock Price ◽  
Dividend Policy ◽  
Price Volatility ◽  
Fixed Effect Model ◽  
Share Prices ◽  
Dividend Payments ◽  
Effect Model ◽  
Dividend Irrelevance ◽  
The Impact

The objective of this study is to inspect dividend policy influence on volatility of share prices. For investigation seven Non-financial segment/sectors have been selected. A sample of 137 firms who paid four dividend payments listed at PSX is analysed for the period of 2007-2017.Proxy for policy of dividend are earning per share, Payout ratio, dividend yield, while assets growth and firm size are taken as control variables. OLS regression model has been initially applied on panel data. The outcomes of fixed effect model are focused. Overall outcomes of the study confirmed that prices of stock is significantly influenced by policy of dividend and reject dividend irrelevance theory.

scholarly journals Research on the relationship between investor network interaction and stock price fluctuation——Take “SSE e interaction” as an example

2021 ◽  
Vol 235 ◽  
pp. 01072
Author(s):  
Chunmiao Ren
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Information Dissemination ◽  
Fixed Effect Model ◽  
Dominant Factor ◽  
Price Fluctuation ◽  
Information Efficiency ◽  
Effect Model ◽  
Negative Sentiment ◽  
The Impact

Whether the stock price fluctuation in emerging markets such as China is dominated by “information efficiency” or “noise” has aroused many scholars’ disputes. Based on the “SSE e interaction” Q & A data, this paper uses the fixed effect model to study the impact of “SSE e interaction” on the stock price synchronization from 3 perspectives: the lag of the company’s response, the pertinence and the negative emotional tendency of investors. The research found that the targeted response of listed companies to investors’ questions in the “SSE e interaction” significantly improved the synchronization of stock prices, and the lag of the response may be the result of selective and tendentious information dissemination. The negative sentiment of investors has certain information content, but excessive negative sentiment may bring noise to the market. Our research shows that information and “noise” coexist in China’s capital market, but “noise” is still the dominant factor in stock price fluctuations.

scholarly journals Are All Independent Directors the Same? Evidence from Italian Listed Companies

2018 ◽  
Vol 13 (9) ◽  
pp. 78
Author(s):  
Paolo Tenuta ◽  
Domenico Rocco Cambrea ◽  
Debora Fazzari
Keyword(s):  
Firm Performance ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Listed Companies ◽  
Fixed Effect Model ◽  
Independent Directors ◽  
Listed Firms ◽  
Female Directors ◽  
Effect Model ◽  
The Impact

The purpose of this study is to investigate the impact of independent directors on the performance of Italian listed firms on the Milan Stock Exchange during the period 2006-2015. After applying a Fixed Effect Model, the empirical findings suggest that the composition of the board may affect corporate performances and, more specifically, a significant relationship emerges between the presence of independent directors within the Board and company results. Specifically, independent directors and independent female directors positively affect firm performance. Diversely, independent busy directors, those with hold more than three directorship in other boards, do not affect performance.

scholarly journals Impact of Dividend Policy on Share Price Evidence from Textile Sector PSX-100 Index

2018 ◽  
Vol III (IV) ◽  
pp. 616-630
Author(s):  
Sanaullah Khan ◽  
Muhammad Faizan Malik ◽  
Shehzad Khan
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Share Price ◽  
Empirical Estimation ◽  
Effect Model ◽  
Independent Variable ◽  
The Impact ◽  
The Relationship

This paper attempts to determine the impact of dividend policy on stock price in Pakistan. A sample of 20 textile listed companies in PSX is examined for a period from 2010 to 2017. The empirical estimation is based on a panel regression analysis of the relationship between dividend policy and share price and also used fixed effect model. Secondary data were used by the researcher in the study. The study has taken share price as a dependent variable while the dividend policy is an independent variable. The dividend policy was measure by different proxy such as SDS, DPR, EPS, PAT and ROE. The result explained that the ROE and EPS have significant positive relationship with share price while the SDS, PAT and DPR have negative association with share price. Although the results are not robust enough as in the case of developed markets but are consistent with the behavior of emerging markets

scholarly journals The Influence of Trading Locations on Equity Returns

2016 ◽  
Vol 12 (12) ◽  
pp. 188
Author(s):  
Nguyen N.T. Vo
Keyword(s):  
Risk Premium ◽  
Stock Price ◽  
Listed Companies ◽  
Equity Returns ◽  
Stock Exchanges ◽  
Home Market ◽  
Trade Effect ◽  
Market Index ◽  
Highly Correlated ◽  
The Impact

This paper evaluates the impact of trading locations on equity returns by examining the stock price behaviour of three Anglo-Dutch dual-listed companies which result from mergers where two corporations agree to function as a single operating business, but maintain separate identities. The shares of these stocks are traded not only in their home market but also on several US stock exchanges in the form of American Depository Receipts. Regressing the return differentials on these dual-listed and cross-listed stocks on the relative market index returns and currency changes provides evidence of an apparent violation of the Law of One Price. The regression results show that the return on each part of dual-listed companies is highly correlated with the market on which it is most intensively traded. Similarly, returns on cross-listed stocks have considerably higher co-movement with US market indices and considerably lower co-movement with home-market indices than their home-market counterparts. Market risk premium is not a significant explanatory variable of the location of trade effect.

The Impact of the Credit Channel on Macroeconomic Variables and Bank Characteristics in the Brazilian Economy from 2009 to 2018

2021 ◽  
Vol 40 (1) ◽  
Author(s):  
Mohammad Farajnezhad
Keyword(s):  
Monetary Policy ◽  
Fixed Effect Model ◽  
Credit Channel ◽  
Macroeconomic Variables ◽  
Brics Countries ◽  
Effect Model ◽  
Level Data ◽  
Monetary Policy Transmission Mechanism ◽  
The Interest Rate ◽  
The Impact

This article uses commercial bank-level data to examine a credit channel of the monetary policy transmission mechanism in the Brazilian economy from BRICS countries.  Static panel data with a fixed-effect model are used for data analysis. Using a sample of 212 commercial banks from 2009 to 2018. According to the findings of this study, there is a significant and positive relationship between macroeconomic variables that affect the interest rate and GDP with the loan amount, but not with the inflation rate. Also, it is reasonable to conclude that banks in Brazil react to monetary policy in a variety of ways.

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 WHETHER FDI OR EXPORTS ENHANCE INNOVATION: EVIDENCE FROM INDIAN MANUFACTURING FIRMS, 2001-2012

2017 ◽  
Vol 26 (3) ◽  
pp. 19-32
Author(s):  
Krishan SINGH ◽  
Dr. Sandeep Kaur BHATIA
Keyword(s):  
Manufacturing Sector ◽  
Fixed Effect Model ◽  
Manufacturing Firms ◽  
Capital Inflows ◽  
Public And Private ◽  
Effect Model ◽  
Foreign Capital Inflows ◽  
Indian Manufacturing Sector ◽  
Public And Private Sector ◽  
The Impact

The economic reforms of 1991 resulted in an increased inflow of FDI into theIndian economy. However, for the invention of new techniques and skills, there is a greatneed to invest on R&D, requires a huge amount of capital, which can be available throughFDI inflows. Technology has been imported in heavy amount after the implementation ofliberalization policies. Therefore, the present study intends to know whether FDIcontributes to the Indian manufacturing sector through R&D or not. The average growthof the manufacturing sector in India (7.93 per cent) has been found considerably higherduring the second decade of reforms (2001-2012) as compared to first decade reforms(1991-2000). In the context of this, the present study has tried to examine the trends andpatterns of FDI and R&D in manufacturing firms of India during the second decade ofreforms (2001-12) and also, to analyze the impact of FDI and exports on R&D inmanufacturing firms of India through fixed effect model. The results suggest that R&D hasbeen significantly impacted by the import of capital goods, foreign equity, disembodiedtechnology, and export intensity during the second decade of liberalization period. Thepresent study suggests that greater approvals for foreign capital inflows are required inIndia, for enhancing the R&D in the manufacturing sector. There must be an appropriatecoordination between public and private sector, which can improve the R&D expenditureof manufacturing firms of India.

Effect of Dividend on Stock Price: A Case of Fuel and Power Industries in Bangladesh

2019 ◽  
Vol 9 (2) ◽  
pp. 87
Author(s):  
Mir Md Nazrul Islam
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Return On Equity ◽  
Share Prices ◽  
Earnings Per Share ◽  
Effect Model

Dividend policy is an extensively researched topic in the arena of investments but still it remains an enigmatic that whether Dividend Policy affects the Stock Prices or not. The consequences of researches conducted in different stock markets are different. In Bangladesh, capital market investment is very essential and significant for the growth and market capitalization of domestic industry, trade and commerce. In current years Bangladesh had faced many precarious situations in its stock market. The Stock price reactions to the declaration of dividend of the fuel and power industry of Bangladesh are empirically examined. This study examines stock price reactions of listed dividend paying fuel and power industries in Dhaka stock exchange, Bangladesh for period of 11 years from of 2008-2018. This study will help us to make effective dividend decisions and effective implementation of dividend policies. In this study, Fixed Effect Model along with Random Effect Model have been used to estimate results. Both Models are implemented on panel data for explaining the association between dividend payments and share prices while controlling logarithm value of Profit after Tax, Earnings per Share and Return on Equity. The research is accompanied with a view to find whether the dividend announcement convey any evidence to the market that results a stock price volatility for adjusting the dividend announcement information while controlling the variables like Profit After Tax Earnings, Per Share and Return on Equity. The study also tested both the Models and found Random Effect Model is more significant than Fixed Effect Model. The result documented on the Random Effect Model shows that there are significant relationship with Retention Ratio, dividend per share and Return on Equity. In addition, Profit after tax shows the negative significant association and Earning per Shares insignificant with the share prices in Bangladesh Fuel and Power sector. 

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