Do Blockchain Stocks Exhibit More Herding Behaviour than Traditional Stocks?

While the volatile behaviour of cryptocurrency is extensively studied, the stock market’s blockchain sector, which has not been given much attention in the academic world, operates very differently from traditional stock industries. The paper hypothesizes that blockchain stocks exhibit more herding behaviour than traditional stocks and uses quantitative data analysis techniques to study it. The automotive industry is taken as a representative of traditional stocks. Cross-Sectional Absolute Deviation, the academic standard for herding behaviour, is used as the primary comparative measure between blockchain and automotive stocks. It reveals that blockchain industry has significant herding, while rational pricing mechanisms prevail in the automotive industry. Supporting this conclusion, a correlation matrix of stock prices of small market capitalisation firms in each industry is constructed, analysing how closely stock price movements in an industry are related. The correlation coefficient for blockchain stocks is 20% higher than the coefficient for automotive stocks. This indicates that blockchain stocks likely exhibit higher levels of herding. The impact of social media on stock price movements in the two industries is analysed by conducting a correlation study between Google Trends data for industry-related keywords and individual stock returns. The blockchain industry saw a significantly higher correlation, likely suggesting that social media has a stronger influence on blockchain stock price movements. Finally, the paper provides possible explanations for why herding behaviour is more prominent in the blockchain stocks compared to traditional stocks. These include absence of traditional stock valuation metrics, lack of financial knowledge and role of social media.

Stock-Trading Simulations as a Resource for Management Instructors

This article reviews stock-trading simulations as a resource for use in management courses. Stock-trading simulations have three highly desirable qualities for educators: (1) they cost nothing to use—instructors can choose from various free simulators that all have the same general functionality, (2) they provide real and continuously updating data (e.g., company news, stock price movements), and (3) they can be customized to enhance learning. Feedback from experience, colleagues, and students confirms that all stock-trading simulations can indirectly enrich learning in courses, such as principles of management and strategy, by compelling students to follow and analyze the decisions of corporate managers. Stock-trading simulations also provide opportunities for students in courses covering managerial decision making to directly analyze and learn from their own decisions when they trade virtual shares of companies. The review concludes with a summary of the potential strengths and limitations management instructors should consider before implementing stock-trading simulations.

ELEMENTS INDICATING STOCK PRICE MOVEMENTS: THE CASE OF THE COMPANIES LISTED ON THE V4 STOCK EXCHANGES

Stock markets stand as a financial mechanism that provides liquidity for firms and offers diversification benefits for investors. Stock markets in the Eastern European countries are weakform efficient which exposes them to speculative prices. This study investigates the influence of the macroeconomic and firm-specific factors on stock prices of the listed companies within the Visegrad Stock Markets. The study employs regression analyses based on a Pooled OLS and Fixed Effect models with year dummies and standard errors clustered at the country level, which are robust to autocorrelation and heteroscedasticity. Data collection consists of 55 listed companies based on the weekly stock prices, from January 2013 till December 2018. The results indicate that total equity is the only significant element that influences the individual stock prices of the companies in the four established models. Additionally, increase in supply of shares declines the current stock prices and the other way around. However, the exchange rate and inflation level indicate a negative influence on the stock prices with weaker significance. The findings show that stock markets of the V4 countries are overall inefficient since important indicators, such as economic activity, debt level, cash flow, firm size, oil, and gold prices have limited influence on the stock price movements.

DETERMINANT ANALYSIS OF FINANCIAL RATIO ON STOCK RETURNS IN CONSTRUCTION COMPANIES REGISTERED AT INDONESIA STOCK EXCHANGE 2015-2019

The growth of the construction sector in Indonesia has indirectly contributed to the growth in the performance of construction companies. This construction performance growth has an impact on stock price movements, apart from the influence of demand and supply of shares. The condition of fluctuating stock price movements requires investors to analyze financial statements before making investment decisions. To find out how the stock price performance can be done by measuring stock returns. In connection with these conditions, the purpose of this study is to analyze the effect of ROE, DER, CR, PBV and TATO on stock returns in construction companies listed on the IDX in 2015 - 2019. This research is included in the category of comparative causal research. The number of samples used in this study were 13 sample companies, with the sampling technique using purposive sampling. The type of data in this study is secondary data taken by the documentation method at Yahoo Finance. The data analysis method uses panel data regression analysis assisted by the Eviews 9.0 software. The results of the study partially show that ROE; DER, CR, PBV, and TATO have a positive and significant effect on stock returns. In addition, ROE, DER, CR, PBV, and TATO simultaneously have a significant effect on stock returns.

Stock market tweets annotated with emotions

As stock trading became a popular topic on Twitter, many researchers have proposed different approaches to make predictions on it, relying on the emotions found in messages. However, detailed studies require a reasonably sized corpus with emotions properly annotated. In this work, we introduce a corpus of tweets in Brazilian Portuguese annotated with emotions. Comprising 4,277 tweets, this is, to the best of our knowledge, the largest annotated corpus available in the stock market domain for this language. Amongst its possible uses, the corpus lends itself to the application of machine learning models for automatic emotion identification, as well as to the study of correlations between emotions and stock price movements.

Company fundamentals and stock price movements: The role of crude oil prices – Evidence from Nigerian Stock Exchange (NSE)

This study analyzed company fundamentals on how it relates and predict stock price movements and the extent of the role of oil prices in moderating the influence of these company fundamentals in stock price movements. The study covered the period of 2014 to 2018. The study is a panel study. A total of 132 companies were sampled from 196 companies listed on the Nigerian Stock Exchange (NSE) as of December 2018. Data were collected from a secondary source. Multiple linear regression models were used to analyze the data. The study found that a relationship exists between selected companies' fundamentals and stock prices, and oil prices moderate the relationship. But EPS and Working Capital have high predictive power on stock price movements but moderating with oil prices the influence reduces significantly. The study recommends among others that Managers of companies in Nigeria should formulate policies and exert effort geared towards improving company fundamentals in the event of oil prices increases.

The Effect of The Match Results on Bali United’s Stock Price Movements

This study was conducted due to differences in the study results inseveral countries related to the effect of the match results on stockmovements. Dimic et. al (2019) stated the match results effect themovement of stock prices, while Mishra & Smyth (2010) stated thevice versa. Then, Floros (2014) put forward different results throughthe study of four clubs in four European countries. Thus, this studyreexamines the effect of the match results on the stock pricemovement of Bali United. Moreover, Bali United is the first SoutheastAsian football club to be listed on the stock market. This study uses aquantitative method with a sample of 31 Bali United’s matches afterlisted on the stock market. The data were analyzed using simple linearregression with SPSS 21 with either won, drawn or lost match resultsrepresented by goal margins. The stock price movements arerepresented by stock prices after the results of the match. It was foundthat the results of the match had a positive effect on the stockmovement of Bali United