scholarly journals Stock Price Synchronicity and Current and Potential Credit Ratings

2019 ◽  
Vol 11 (10) ◽  
pp. 1
Author(s):  
Bruno Figlioli ◽  
Rafael Moreira Antônio ◽  
Fabiano Guasti Lima
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Credit Rating ◽  
Stock Exchange ◽  
Credit Ratings ◽  
Relevant Information ◽  
General Information ◽  
Specific Information ◽  
Stock Price Synchronicity ◽  
Risk Levels

This study examines whether the stock prices reflet the relevant information on the companies´current and potential credit ratings. This investigation was carried out from the construct of stock price synchronicity, that is, the more the stock prices reflect the specific information of a certain company, the less the synchronicity of these prices in relation to the market general information tends to be. It would imply that the stock prices tend to be more informative on the companies´potential in generating future economic benefit and on their risk levels. For carrying out this study, information on the companies which have their shares listed at the Brazilian Stock Exchange (Brazil, Stock Exchange and Over-the-counter – B3) from 2010 to 2015 were analyzed. The results obtained point that the stock prices not only embody information on the alterations of the companies´s current credit ratings regarding the upgrade, but also reflect, with certain antecipation, the potential credit ratings. Nevertheless, the results indicate that not every credit rating class is associated with relevant information for the capital market.

Analysts' Information Acquisition and Stock Price Synchronicity: A Regulatory Perspective from China

2018 ◽  
Vol 33 (1) ◽  
pp. 153-179 ◽  
Author(s):  
Haiyan Jiang ◽  
Donghua Zhou ◽  
Joseph H. Zhang
Keyword(s):  
Insider Trading ◽  
Private Information ◽  
Stock Prices ◽  
Information Acquisition ◽  
Stock Price ◽  
Specific Information ◽  
Stock Price Synchronicity ◽  
Playing Field ◽  
Information Advantage ◽  
Private Information Acquisition

SYNOPSIS Against the backdrop of the Chinese Directive 40 (China's Reg FD) issued in 2007 as an attempt to curb insider trading and to level the information playing field, this study investigates whether analysts' private information acquisition influences the extent to which firm-specific information is impounded into stock prices, i.e., stock price synchronicity, and how the restrictions on selective disclosures imposed by Directive 40 have shaped the relationship between analyst information acquisition and synchronicity. Using a pre-Directive 40 sample, we show that synchronicity is negatively related to analysts' private information acquisition, which provides support for the “information advantage” argument of analysts' information production. However, the ability of analysts' private information acquisition in improving firm-specific information incorporated into stock price is mitigated post-Directive 40 due to a restriction on selective disclosures and/or private communication. Moreover, we find that this regulatory impact varies for firms being followed by affiliated analysts versus non-affiliated analysts. JEL Classifications: G14; G15; G17; G18.

Aggressive tax planning and stock price synchronicity: evidence from China

2019 ◽  
Vol 15 (5) ◽  
pp. 829-857 ◽  
Author(s):  
Hua Feng ◽  
Ahsan Habib ◽  
Gao liang Tian
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Tax Planning ◽  
Specific Information ◽  
Price Informativeness ◽  
Firm Level ◽  
Stock Price Synchronicity ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the association between aggressive tax planning and stock price synchronicity. Design/methodology/approach Employing the special institutional background of China, this study constructs tax aggressiveness and stock price synchronicity measures for a large sample of Chinese stocks spanning the period 2003–2015. The authors employ OLS regression as the baseline methodology, and a fixed effect model, the Fama–Macbeth method and GMM as sensitivity checks. Matched samples and difference-in-difference analyses are used to control for endogeneity. Findings The authors find a significant and positive association between aggressive tax planning and stock price synchronicity. Because material information about risky tax transactions tends to be hidden in various tax accruals accounts, aggressive tax strategies make financial statements less transparent, thereby, increasing information asymmetry and decreasing stock price informativeness. The authors also find that the firms engaging in aggressive tax planning exhibit relatively high corporate opacity. In addition, the authors find that improvements in the tax enforcement regime, ownership status and high-quality auditors all constrain the adverse effects of tax aggressiveness. Practical implications This study has important practical implications for China’s regulators, who are striving to reduce the tax burden of enterprises. It also helps investors to consider investment decisions more appropriately from a taxation perspective. Originality/value First, this paper contributes to the stock price efficiency literature by identifying the effect of a hitherto unexamined factor, namely, firm-level aggressive tax planning, on the efficiency of stock prices. Second, this study provides further empirical evidence to support the agency view of tax aggressiveness, and the informational interpretation of stock price synchronicity. Third, this study helps us better understand the effects of firm-level tax policy on firm-specific information capitalization in an environment where overall country-level investor protection is relatively weak.

Can microblogging information disclosure reduce stock price synchronicity? Evidence from China

2018 ◽  
Vol 44 (2) ◽  
pp. 282-305 ◽  
Author(s):  
Donghua Zhou ◽  
Yujie Zhao ◽  
Philip T Lin ◽  
Bin Li ◽  
Adrian (Waikong) Cheung
Keyword(s):  
Stock Prices ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Relationship ◽  
Jel Classification ◽  
Specific Information ◽  
Chinese Stock Market ◽  
Stock Price Synchronicity ◽  
Alternative Measures ◽  
The Impact

We study the relationship between stock price synchronicity and information disclosure of firms listed in the Chinese stock market, using hand-collected data on firms’ official microblogging content in Sina Weibo, a popular microblogging service in China. We find that after controlling for the impact of traditional media, the number of Weibo tweets is related negatively to stock price synchronicity, indicating that stock prices incorporate firm-specific information disclosed in the firm’s official Weibo. Number of microblogging fans can strengthen this negative relationship. Our result is robust to alternative measures of stock price synchronicity, microblogging information disclosure, and to endogeneity issues. JEL Classification: G14, G15

The Effect of Trade Secrets Law on Stock Price Synchronicity: Evidence from the Inevitable Disclosure Doctrine

2020 ◽  
pp. 0000-0000 ◽  
Author(s):  
Yongtae Kim ◽  
Lixin (Nancy) Su ◽  
Zheng Wang ◽  
Haibin Wu
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
State Courts ◽  
Specific Information ◽  
Cost Of Equity ◽  
Stock Price Synchronicity ◽  
Corporate Managers ◽  
Proprietary Information ◽  
Proprietary Cost ◽  
Trade Secret Protection

We exploit the staggered recognition of the Inevitable Disclosure Doctrine (IDD) by US state courts to examine the effect of trade-secret protection on the amount of firm-specific information incorporated in stock prices, as reflected in stock price synchronicity. We find that after certain state courts recognize the IDD, firms headquartered in those states exhibit a significant increase in stock price synchronicity relative to firms in other states. We also find a significant decrease in the disclosure of proprietary information in the firms' 10-K reports. These results suggest that IDD recognition increases the proprietary cost of disclosure, and, in response, corporate managers withhold more information. In addition, we find that the increase in stock price synchronicity and the decrease in the disclosure of proprietary information lead to increases in the firm's market share, cost of equity, and market-to-book ratio, suggesting that managers sacrifice capital market benefits for product market gains.

scholarly journals Informational Consequences of Mandatory IFRS Adoption in China

2018 ◽  
Vol 8 (3) ◽  
pp. 295
Author(s):  
Archana Patro
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Demand Elasticity ◽  
Future Price ◽  
Multivariate Techniques ◽  
Specific Information ◽  
Stock Price Synchronicity ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
The Impact

In China, International Financial Reporting Standards (IFRS) have become mandatory for listed firms in 2007. While earlier research on “voluntary” adopters has provided valuable insights on the impact of IFRS disclosure, these results cannot be generalised in a mandatory setting. We expect effects from mandatory IFRS adoption to be different from those documented for voluntary IFRS adopters since the former group is essentially forced to adopt IFRS. The empirical model, relating to stock price synchronicity with adoption of IFRS, and other firm-specific control variables were analysed using both univariate and multivariate techniques. Different types of panel data estimates were used and compared so as to interpret the results with the best-suited parameters for different data sets for different markets. Studying data covering the period from 2001-2013, the present study examines whether mandatory adoption of IFRS reduces Stock Price Synchronicity for Chinese firms. The empirical results show that IFRS adoption improves information environment by the capitalization of firm-specific information into stock prices, thereby reduces the Stock Price synchronicity. The paper further examines if the information impact was homogeneous across industries. This pattern of decrease in stock price synchronicity after adoption of IFRS is different for different industries taken for analysis. Aerospace & Defense, Automobiles Beverages, Metals & Mining, Retailer& Real Estate Operations have reduced synchronicity but other industries such as Biotech, Electric utilities, Electronic, Leisure products, Renewable energy and Telecom have increased synchronicity. For these industries, the low reliance on market wide information makes reasonable economic sense because they have relatively low demand elasticity. Hence, in demand inelastic industries, future price sensitive factors remain constant and so a changed IFRS accounting regime has little marginal impact. This study provides a different methodological approach by concentrating on Industry wide information effects from the mandatory adoption. These findings have important implications that apply not only to China, but also to other emerging and transitional economies such as India where IFRS is yet to be mandated. Moreover it will help regulators, academicians and practitioners to assess the informational benefit of adopting IFRS.

scholarly journals Pengaruh Profitabilitas dan Resiko Keuangan Terhadap Harga Saham (Studi Kausal Pada PT Xl Axiata Tbk)

2020 ◽  
Vol 10 (2) ◽  
pp. 137-148
Author(s):  
Dian Maulita
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Quantitative Research ◽  
Financial Risk ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Relevant Information ◽  
Literature Study ◽  
Data Collection Technique

ABSTRAK XL Axiata Tbk merupakan perusahaan telekomunikasi swasta pertama dan sudah terdaftar di BEI. Seiring dengan berjalannya waktu banyak bermunculan perusahaan telekomunikasi swasta di Indonesia. Hal ini menyebabkan persaingan dalam meperoleh investasi semakin ketat yang berdampak pada kondisi harga saham. Penelitian ini dimaksudkan untuk menguji bagaimana pengaruh Profitabilitas dan Resiko Keuangan Terhadap Harga Saham Studi Kasus Pada PT. XL Axiata Tbk.  Penelitian ini menggunakan riset kuantitatif, yaitu menggunakan sampel yang mencerminkan populasi dalam menguji hipotesis. Data yang digunakan dalam penelitian ini adalah data sekunder yang dipublikasikan oleh Bursa Efek Indonesia berupa Annual Report. Teknik pengumpulan data yang digunakan adalah studi pustaka  dimana peneliti menghimpun informasi relevan yang berkaitan dengan topik atau masalah yang akan atau sedang diteliti. Populasi  dalam penelitian ini adalah PT. XL Axiata Tbk. Sampel dalam penelitian ini adalah Laporan Keuangan PT. XL Axiata Tbk periode 2007-2017. Hasil dari penelitian ini adalah (1) Profitabilitas berpengaruh signifikan terhadap harga saham. (2) Resiko Keuangan tidak berpengaruh signifikan terhadap harga saham (3) Profitabilitas dan Resiko Keuangan secara simultan berpengaruh signifikan terhadap harga saham. Berdasarkan hasil penelitian tersebut diharapkan dapat menjadi referensi bagi manajemen perusahaan dalam pengambilan keputusan dan menjadi referensi penelitian selanjutnya.   Kata Kunci : Profitabilitas, Resiko Keuangan, Harga Saham     ABSTRACT PT. XL Axiata Tbk is the first private telecommunications company and is listed on the IDX. Over time, many private telecommunications companies have emerged in Indonesia. This has resulted in tighter competition for investment which has an impact on stock price conditions.This research is intended to examine how the influence of Profitability and Financial Risk on Stock Prices Case Studies at PT. XL Axiata Tbk. This study uses quantitative research, namely using a sample that reflects the population in testing the hypothesis. The data used in this research is secondary data published by the Indonesia Stock Exchange in the form of an Annual Report. The data collection technique used is literature study where the researcher collects relevant information relating to the topic or problem that will be or is being researched. The population in this study were PT. XL Axiata Tbk. The sample in this study is the financial statements of PT. XL Axiata Tbk for the period 2007-2017.The results of this study are (1) Profitability has a significant effect on stock prices. (2) Financial risk has no significant effect on stock prices (3) Profitability and financial risk simultaneously have a significant effect on stock prices.Based on the results of this study, it is hoped that it can become a reference for company management in making decisions and become a reference for further research.                                        Keywords: Profitability, Financial Risk, Stock Price

scholarly journals Value relevance of Accounting Information and its Impact on Stock Prices: Case Study of Listed Banks at Karachi Stock Exchange

2014 ◽  
Vol 1 (3) ◽  
pp. 6-9 ◽  
Author(s):  
Khurram Shehzad ◽  
Aisha Ismail
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Banking Sector ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Relevant Information ◽  
Accounting Data ◽  
Economic Decisions ◽  
Future Events

This study primary investigates the value relevance of accounting information in banking sector of Pakistan. The study employed the pooled regression technique on nineteen private banks from the period of 2008 to 2012. The findings show that earning per share is more value relevant than book values, while accounting data explains a high proportion of the stock price. The relevant information is such that it influences the economic decisions of users by helping them evaluate past, present and future events.

scholarly journals The Index and Stock Price Synchronicity: Evidence from Taiwan

2020 ◽  
Vol 198 ◽  
pp. 04029
Author(s):  
Chung-Lien Pan ◽  
Yu-Chun Pan
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Audit Quality ◽  
Stock Exchange ◽  
Small Sample ◽  
Stock Index ◽  
Stock Price Synchronicity ◽  
Taiwan Stock Exchange ◽  
Gray System ◽  
Technical Theory

Research on stock synchronization has always been a topic of concern to scholars and investors. In the past, the focus was mainly on equity concentration, foreign shareholding, audit quality, and other issues, not including indexes. This article uses the monthly data of the Taiwan Stock Exchange Capital Weighted Stock Index (TAIEX) to solve the problem of the index and stock synchronization. And use the technical theory of the gray system to solve the small sample and uncertain problem. The discovery of the synchronization between these indexes and stock prices may provide investors with sufficient reference to make investment decisions.

Effect Of Leverage, Inflation And GDP To Share Price Pt. Astra Otoparts Tbk.

ProBank ◽  
2018 ◽  
Vol 3 (2) ◽  
pp. 17-21
Author(s):  
Heriyanta Budi Utama ◽  
Florianus Dimas Gunurdya Putra Wardana
Keyword(s):  
Gross Domestic Product ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Share Price ◽  
Domestic Product ◽  
Coefficient Of Determination ◽  
Test Results ◽  
Purposive Sampling

The purpose of this study was to obtain empirical evidence about the effect of leverage, inflation and Gross Domestic Product (GDP) of the share price at PT. Astra Autopart, Tbk. companies in Indonesia Stock Exchange in 2011-2015. The sampling technique in this study using a purposive sampling. With the technique of purposive  sampling, all the members of the research samples by criteria. Samples that meet the criteria are used research data. Then followed the classic assumption test and test hypotheses by linear regression. The results of this study demonstrate the regression results in regression equation that Y = 2605,424 + 1561,550 X1 + 2,338 X2 + 38,994X3. T test results showed that the leverage anda GDP (Gross Domestic Product) is positive and significant effect on stock prices, while inflation is not positive and significant effect on stock prices. F test results showed that jointly leverage variables, inflation and GDP variables affecting the stock price significantly. The test results R2 (coefficient of determination) found that the variable leverage, inflation and GDP able to explain 35,4% of the stock price variable, while the remaining 64,6% is explained by other variables.Keywords: leverage, inflation, GDP, and the share priceThe purpose of this study was to obtain empirical evidence about the effect of leverage, inflation and Gross Domestic Product (GDP) of the share price at PT. Astra Autopart, Tbk. companies in Indonesia Stock Exchange in 2011-2015.The sampling technique in this study using a purposive sampling. With the technique of purposive  sampling, all the members of the research samples by criteria. Samples that meet the criteria are used research data. Then followed the classic assumption test and test hypotheses by linear regression.The results of this study demonstrate the regression results in regression equation that Y = 2605,424 + 1561,550 X1 + 2,338 X2 + 38,994X3. T test results showed that the leverage anda GDP (Gross Domestic Product) is positive and significant effect on stock prices, while inflation is not positive and significant effect on stock prices. F test results showed that jointly leverage variables, inflation and GDP variables affecting the stock price significantly. The test results R2 (coefficient of determination) found that the variable leverage, inflation and GDP able to explain 35,4% of the stock price variable, while the remaining 64,6% is explained by other variables.Keywords: leverage, inflation, GDP, and the share price

scholarly journals PENGARUH INFLASI, PROFITABILITAS, STRUKTUR MODAL, DAN EARNING PER SHARE TERHADAP HARGA SAHAM PERUSAHAAN CONSUMER GOODS

2019 ◽  
Vol 8 (6) ◽  
pp. 3930
Author(s):  
Septia Wulandari Suarka ◽  
Ni Luh Putu Wiagustini
Keyword(s):  
Data Collection ◽  
Consumer Goods ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Participant Observation ◽  
Share Price ◽  
Significant Positive Effect ◽  
Positive Effect

The purpose of this study is to analyze the significance of the influence of inflation, ROE, DER, and EPS on stock prices. This research was conducted at Concern Goods Companies that are listed on the Indonesia Stock Exchange (IDX) for the 2015-2017 period. The number of samples of this study were 31 companies. Data collection is done by the method of non-participant observation. Based on the results of the analysis found that inflation, ROE. DER, and EPS simultaneously have a significant effect on stock prices. Partially Inflation and DER have no significant effect on stock prices, this indicates that investors do not see Inflation and DER as a decision to buy shares. While partially ROE and EPS have a significant positive effect on stock prices, this shows that investors pay attention to ROE and EPS in deciding to invest. The higher the ROE and EPS, the higher the investor's interest in investing in the company's capital, so that the share price will go up. Keywords: Inflation, ROE, DER, EPS, stock price    

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