scholarly journals Does Stock Price Differentiation Reflect Business Performance during COVID-19 Black Swan?

2021 ◽  
Vol 22 (11) ◽  
pp. 50-59
Author(s):  
Sun Woong Kim
Keyword(s):  
Stock Price ◽  
Business Performance ◽  
Black Swan ◽  
Price Differentiation

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 The Impact of Black Swan Events on Stock Prices: Evidence from the Melamine Incident in China

2020 ◽  
Vol 214 ◽  
pp. 03019
Author(s):  
Wenjian ZHU
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Dairy Industry ◽  
Black Swan ◽  
Control Effect ◽  
Negative Effect ◽  
Risk Treatment ◽  
Risk Handling ◽  
Leading Enterprises ◽  
The Impact

The influence of melamine incident on dairy industry in 2008 was investigated, and the control effect of different enterprises on the black swan incident was analyzed. First of all, this paper analyzes the impact of the stock of listed companies in the dairy industry after the black swan incident, and compares the impact of the different risk treatment of several leading enterprises on the stock price recovery. The results show that: first, the melamine incident has a negative effect on the enterprises involved, and the enterprises involved do not have a competitive advantage. Second, in the same period, enterprises pay more attention to the influence of black swan event and take more powerful measures. The greater the risk treatment intensity is, the less the influence of black swan event will be. Third, the two enterprises have similar risk handling strength. The faster the response to risk events, the earlier the processing time, and the less affected by the black swan event.

The Financial Information Content of Perceived Quality

1994 ◽  
Vol 31 (2) ◽  
pp. 191-201 ◽  
Author(s):  
David A. Aaker ◽  
Robert Jacobson
Keyword(s):  
Stock Market ◽  
Firm Value ◽  
Stock Price ◽  
Stock Return ◽  
Business Performance ◽  
Perceived Quality ◽  
Short Term ◽  
Quality Perceptions ◽  
Current Term

The authors investigate whether movement in a firm's stock price, that is, a measure of firm value, is associated with information contained in perceived quality measures. In a model that also allows for the effect of economywide factors and a firm's return on investment, they find a positive relationship between stock return and changes in quality perceptions. These results imply that the quality measure contains information, incremental to that reflected by current-term accounting measures, about future-term business performance. They suggest that managers should convey information to the stock market, such as the brand's quality image, useful in depicting the long-term prospects of the business. By doing so, the stock market will rely less on short-term measures of business performance, and managers will be freer to undertake strategies necessary for ensuring the long-term viability of their firms.

scholarly journals Effectiveness of Diversification Strategies for Ensuring Financial Sustainability of Construction Companies in the Republic of Korea

2019 ◽  
Vol 11 (11) ◽  
pp. 3076
Author(s):  
Manchun Han ◽  
Sanghyo Lee ◽  
Jaejun Kim
Keyword(s):  
Stock Price ◽  
Business Performance ◽  
Financial Sustainability ◽  
Diversification Strategy ◽  
Construction Company ◽  
Construction Companies ◽  
International Construction ◽  
Dynamic Relationship ◽  
Diversification Strategies ◽  
The Republic

Construction companies recognize diversification as a strategy for ensuring financial sustainability. Hence, the aim of this study was to analyze the dynamic relationship between business diversification and business performance of construction companies using the vector error correction model. The expected default frequency, diversification index, domestic construction order, international construction order, gross Domestic Product, Korea composite stock price index, and interest rate were defined as analytical variables. To derive implications for diversification strategies, construction companies were classified into two groups according to the diversification level, and analyzed from the first quarter of 2001 to the fourth quarter of 2017. The results confirm that the dynamic relationship between the diversification strategy and business performance depends on the diversification level of the company. For changes in the markets entered for diversification, construction companies showed different ways of executing the diversification strategy depending on the group; this was partially because of differences in internal and external capabilities of companies, and each company responded differently to market changes. To ensure financial sustainability of a construction company through effective diversification, various conditions must be considered before deciding what impact the diversification strategy could have on the business performance of the company.

scholarly journals Effect of Mergers and Acquisitions on Performance of Enterprise Value

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
T. Sathishkumar ◽  
P.N. Assai Tamby
Keyword(s):  
Mergers And Acquisitions ◽  
Stock Price ◽  
Business Performance ◽  
T Test ◽  
Mean Difference ◽  
Enterprise Value ◽  
Paired Samples ◽  
Acquiring Firms ◽  
The Mean ◽  
The Impact

In this study, we have made an analysis on the impact of Mergers and Acquisitions (M and A) on the performance of Enterprise Value in the post-merger period. For this purpose, ten firms were selected based on the adequacy of data for a period of ten years on a year-to-year basis from 2006-2007 to 2016-2017. The firms, which had gone into the M and A process during the financial year 2011–2012 are also considered for the study. Paired samples t-test is applied to study the mean difference in performance of Enterprise Value of the acquiring firms in the pre-and post-merger periods. From the analysis, it has been found that the acquiring firms drastically improved in stock price and business performance. As a result the acquiring firms are visible among competitors with a capacity to develop into something big in the future and merged firms feel that they have chosen a good acquirer firm. Hence, most of the acquiring firms have significant change in the performance of Enterprise Value in the post-merger period.

scholarly journals Analisis Fundamental Sebagai Prediktor Harga Saham Sektor Telekomunikasi

2021 ◽  
Vol 20 (1) ◽  
pp. 11-17
Author(s):  
Ni Made Santini ◽  
Ni Luh Anik Puspa Ningsih ◽  
Ita Sylvia Azita Azis
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Business Performance ◽  
Rapid Development ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Price Ratio ◽  
Share Prices ◽  
Equity Ratio

The rapid development and growth of the economy requires companies to improve their business performance. Companies with good performance are generally reflected in their share prices. This makes the stock price one of the investors' preferences for investing. Deepening the development of stock prices can be through the company's fundamental analysis. The purpose of this study is to analyze the company's fundamental factors on stock prices. The research was conducted on the telecommunications sector on the IDX, with an observation period of 2017 - 2019. There is a total population and a sample of 5 issuers at the same time. This study uses secondary data and multiple linear regression analysis techniques. The findings of this study are from 5 (five) ratios used, current ratio, debt to equity ratio, and earnings per share individually have no significant effect on stock prices. Gross profit margin have a positive signifikan effect on stock price ratio of total asset turn over which has a negative significant effect on the stock price of telecommunications companies on the IDX.

scholarly journals The Link of Abnormal Accrual Mispricing and Value- Glamour Stock Anomaly: Evidence from the Indonesian Capital Market

2012 ◽  
Vol 14 (1) ◽  
pp. 77
Author(s):  
Erni Ekawati
Keyword(s):  
Stock Price ◽  
Business Performance ◽  
Stock Exchange ◽  
Cash Flows ◽  
Sales Growth ◽  
Operating Cash Flows ◽  
Practical Standpoint ◽  
Abnormal Accruals ◽  
Reported Earnings ◽  
Accrual Mispricing

The purpose of this study is to investigate whether abnormal accrual mispricing acknowledged in accounting literature is a manifestation of documented value-glamour anomaly in finance literature. This study proposes the traditional value-glamour proxies (sales growth, book-to-market, earningprice, cash flows-price, and size) and CFO/P ratio (ratio of operating cash flows and stock price) to explain the mispricing of abnormal accruals. Using a sample of 540 firm-year observations of companies listed on the Jakarta Stock Exchange (JSE) from the period of 1993 to 2003, the study finds that individually, only either the E/P or CFO/P ratio can pick up the mispricing attributed to abnormal accruals. These results can be interpreted as follows: (1) as captured by E/P ratio, abnormal accrual mispricing is due to the market’s inability to understand managers’ attempts to manage reported earnings; (2) as captured by the CFO/P, the market is unable to assess the persistence of cash flows. From a practical standpoint, this study has simplified the research agenda related to asset pricing. The result suggests that a researcher can control for the abnormal accrual mispricing and the value-glamour anomaly parsimoniously via just one variable, E/P ratio.Keywords: business performance; entrepreneurial orientation; environmental uncertainty

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