Determining the Effect of Managerial Overconfidence on Share Price: Evidence from Some FTSE / JSE Top 40 Index Companies

2021 ◽  
pp. 122-134
Author(s):  
Emmanuel Lawa ◽  
Luther-King Junior Zogli ◽  
Bongani Innocent Dlamini
Keyword(s):  
Share Price ◽  
Top 40 ◽  
Managerial Overconfidence

scholarly journals The role of dividend policy in share price volatility

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Lydia Pelcher
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Wealth Distribution ◽  
Price Volatility ◽  
Shareholder Wealth ◽  
Share Price ◽  
Wealth Creation ◽  
Top 40 ◽  
A Company

Orientation: A key objective of a company is to maximise shareholder wealth. Distribution of created wealth is achieved either through reinvestment in the company, which increases share value, or through dividend payouts. This encapsulates the dividend policy of a company. In order to realise a cash return, the former requires an investor to liquidate part of the investment, while the latter provides an immediate cash return.Research purpose: The objective was to establish whether relationships exist between share price volatility and dividend policy for shares listed on the Johannesburg Stock Exchange Limited (JSE).Motivation for the study: Dividend policy is an important consideration in the wealth creation process, particularly whether or not to distribute dividends to shareholders. Dividend policy is often structured to cater for shareholders’ expectations.Research design, approach and method: Panel data analysis was employed on a sample of the top 40 JSE-listed shares from 2007 to 2016.Main findings: The results indicated that the association between share price volatility and dividend yield is positive and significant but that between share price volatility and payout ratio is insignificant.Practical/managerial implications: Dividends were proven to be relevant to shareholders and have an association with share price volatility.Contribution/value-add: Dividend policy for the top 40 companies listed on the JSE is a contributor to share price volatility. In order to minimise share price volatility, managers of dividend-paying companies should structure the dividend policy to have consistent dividend payments but also able to reinvest excess cash within the company.

scholarly journals The Effect Of Earnings Per Share Categories On Share Price Behavior: Some South African Evidence

2016 ◽  
Vol 33 (1) ◽  
pp. 141-152
Author(s):  
Natasha Robbetze ◽  
Rikus De Villiers ◽  
Lana Harmse
Keyword(s):  
South African ◽  
Correlation Coefficients ◽  
Listed Companies ◽  
Share Price ◽  
Potential Growth ◽  
Share Prices ◽  
Earnings Per Share ◽  
Top 40 ◽  
The Relationship ◽  
Lower Correlation

Earnings per share (EPS) is considered as an important accounting indicator of risk, entity performance and corporate success. It is used to forecast potential growth in future share prices, because changes in EPS are often reflected in share price behaviour. Companies listed on the Johannesburg Share Exchange (JSE) are required to publish three different categories of EPS: basic, diluted and headline EPS. It has become apparent that there is no indication as to which category explains share price behaviour best. The study therefore aimed to determine which category of EPS is best associated with share prices of the top 40 JSE listed companies in South Africa. No South African studies have previously attempted to answer this question. The top 40 JSE listed companies were selected as the research sample and the relationship between different categories of EPS and share prices was analysed empirically for the period 2005 to 2013. This study demonstrated that basic EPS correlated best with the changing behaviour of share prices. Furthermore, the study established that headline EPS proved to deliver lower correlation coefficients than other EPS categories. Based on the findings of this study some useful recommendations and areas for further research were also identified.

scholarly journals The effect of the rand exchange rate on the JSE Top-40 stocks: An analysis for the practitioner

2007 ◽  
Vol 38 (1) ◽  
pp. 45-58 ◽  
Author(s):  
G. D.I. Barr ◽  
B. S. Kantor ◽  
C. G. Holdsworth
Keyword(s):  
Exchange Rate ◽  
A Priori ◽  
Share Price ◽  
Global Positioning ◽  
Exchange Rate Movements ◽  
The Exchange Rate ◽  
Top 40 ◽  
Almost All ◽  
The Relationship ◽  
Future Exchange

This paper investigates the relationship between the returns of the ALSI Top 40 companies and changes in the Rand-Dollar exchange rate. Each of the Top 40 companies was grouped, a priori, according to their global positioning vis-à-vis income and costs into four main categories; namely, Rand-hedge, Rand-leverage, Rand-play and Mixed. The expected reaction of each of the shares within these categories to movements in the exchange rate was in almost all cases confirmed by GARCH adjusted regression analysis over two separate periods, February 1999 to January 2002 and February 2002 to August 2005. Ranked t-statistics were then used to gauge the consistency of the risk-adjusted magnitude of share price changes with respect to changes in the exchange rate. This ranking allows investors to construct customised portfolios according to their expectation of future exchange rate movements and to more fully understand the exchange rate risk that their current portfolio may have.

Diabetes, Prediabetes Top 40% Among U.S. Adults

2009 ◽  
Vol 39 (5) ◽  
pp. 10
Author(s):  
HEIDI SPLETE
Keyword(s):  
Top 40

The economic consequences of voluntary environmental reporting on shareholder wealth

2006 ◽  
Vol 3 (2) ◽  
pp. 1 ◽  
Author(s):  
Ruslaina Yusoff ◽  
Shariful Amran Abd Rahman ◽  
Wan Nazihah Wan Mohamed
Keyword(s):  
Abnormal Return ◽  
Listed Companies ◽  
Shareholder Wealth ◽  
Environmental Information ◽  
Economic Consequences ◽  
Share Price ◽  
Cumulative Abnormal Return ◽  
Environmental Reporting ◽  
Financial Report ◽  
Significant Difference

This study was carried out to examine the economic consequences ofvoluntary environmental reporting on shareholders' wealth among Malaysian Listed Companies that voluntarily disclosed environmental information in their financial report. One hundred andfifty two (152) companies of Bursa Malaysia (MSE) had been identified as a sample in the current study. Seventy six (76) companies were classified as environmental reporting companies while the remaining companies were classified as non-environmental reporting companies. The classification was done in order to determine the differences between share price, profitability and market equity for both types of companies. The study hypothesizes that voluntary environmental reporting leads to an improvement in the shareholders wealth. However, the results show that there is no significant difference between cumulative abnormal return for environmental and non-environmental reporting companies. Based on the results obtained, it can also be concluded that profitability and size of the companies do not have any significant roles in deciding whether or not to produce environmental reporting companies.

The Dance Chorus in Recent Top-40 Music

2020 ◽  
Vol 6 (4) ◽  
Author(s):  
Alyssa Barna
Keyword(s):  
Popular Music ◽  
Dance Music ◽  
Electronic Dance Music ◽  
Production Techniques ◽  
Top 40

Contemporary trends in popular music incorporate timbres, formal structures, and production techniques borrowed from Electronic Dance Music (EDM). The musical surface demonstrates this clearly to the listener; less obvious are the modifications made to formal prototypes used in rock and popular music. This article explains a new formal section common to collaborative Pop/EDM songs called the Dance Chorus. Following the verse and chorus, a Dance Chorus is an intensified version of the chorus that retains the same harmony and contains the hook of the song, which increases memorability for the audience. As the name implies, the Dance Chorus also incorporates and acknowledges the embodiment performed in this section.

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

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