Amsterdam Stock Exchange Research Articles

The Polyphonic Object

The polyphonic object features a collection of analyses on Herman Lugt's 1914 painting 'Registration of Belgian Refugees in the Amsterdam Stock Exchange' by Jan Lucassen, Judith van Gent and Anita Böcker This contribution features three short essays by three scholars, approaching an object from the Amsterdam Museum from their different perspectives: The Registration of Belgian Refugees in the Amsterdam Stock Exchange, 1914' (Herman Lugt 1881-1950)

A Study on Position of SEBI in Indian Securities Market

The arrangement and processes of the SEBI have been developed over the year. In 1602 when Amsterdam stock exchange was admitted by the East India Company for dealings in its hold securities the establishment of the native share and stock Brokers Association which is now remand as Bombay Stock Exchange in 1875 in the existing India undoubtedly marked a beginning of the stock exchange in India despite being the first ever stock exchange in Asia continent. The most basic legislative efforts to control the securities market in India was made by the Bombay Securities Contracts control act 1925, which was enacted to regulate and control certain contras acts for purchase and sale of securities in the city of Bombay.

Effects of climate change on financial statements of entities listed in the Netherlands

A survey of 88 companies listed on the Amsterdam Stock Exchange shows that the number of financial statements referencing climate change has increased significantly (from 9% in 2020 to 39% in 2021) and that the reported financial impact of climate change was not material. However, significant improvements in the disclosures can be achieved by disclosing assumptions used, sensitivity analyses made and comparisons against benchmarks such as Paris-aligned climate change scenarios. We also found a very significant increase in the references to climate change in the auditor reports (from 2% in 2020 to 70% in 2021). We conclude that the increase in references to climate change has most likely been caused by increased pressure from institutional investors, environmental lobby organisations and regulators upon preparers and auditors for more transparency.

From free-for-all to self-governing monopoly: market organization and price information at the Amsterdam Stock Exchange, 1796–1940

For most of its history Amsterdam securities trading was entirely unregulated and spread over various venues frequented by different social groups, handicapping price transparency. A public price current emerged only in 1796 and then with wide bid-ask spreads to protect margins. To combat the confusion a curious pricing method, the mid-price system, emerged during the nineteenth century. Tied to a market microstructure centring onhoekmannen(market makers), this system transited effortlessly from a public market into a monopoly by 1913, self-governing, still without any government regulation, and offering wide rent-seeking opportunities.

Audit committee and financial reporting quality: the moderating effect of audit quality

PurposeThe purpose of this study is to address the impact of audit quality on financial reporting quality proxied by real earnings management. To further clarify the mentioned links, this study empirically assesses the moderating effect of audit quality.Design/methodology/approachThe study is based on a sample consisting of 90 non-financial companies that are listed in the Amsterdam stock exchange in AEX all share index over the 2010–2017 period. This study applies a quantitative approach and secondary data as the main source of information for analysis. This paper performs an ordinary least squares regression to examine the moderating effect of audit quality on the relationship between financial reporting quality.FindingsEmpirical findings demonstrate that corporate governance mechanism, mainly independence members, financial expert and audit committee size has a statistically significant relationship with real earnings management. However, the effect of audit committee meetings on real earnings management is not significant. There is also evidence that audit quality moderates the audit committee – real earnings management links.Originality/valueThis study extends the existing literature by examining the moderating effect of audit quality on the relationship between financial reporting quality proxied by real earnings management in the Dutch context.

Government Bonds Traded at the Amsterdam Stock Exchange 1914–1919 /

Government Bonds Traded at the Amsterdam Stock Exchange 1914–1919 /

The impact of audit committee on real earnings management: Evidence from Netherlands

This paper aims to examine the effect of the characteristics of an audit committee on real earnings management in the Dutch context. Our sample is composed of 80 non-financial companies listed on the Amsterdam Stock Exchange during the period between 2010 and 2017. Four proxies are used to measure audit committee characteristics, namely, audit committee independence, financial expertise, gender diversity, and audit committee meetings. To test our hypotheses, we use a regression model to identify the influence of a set of audit committee characteristics on real earnings management after controlling for firm audit committee size, leverage, size, loss, growth and board size. Our analyses provide evidence that audit committee independence and gender diversity constrain real earnings management. Our findings also suggest that audit committee financial expertise reduces to some extent the likelihood of engaging in real earnings management. To the best of our knowledge, the Dutch context is not yet explored especially following the issue of the long-awaited new Dutch Corporate Governance Code in 2016 which has been updated for a long period in 2008. Therefore, corporate governance is a relevant topic in the Netherlands. This study contributes geographically to the Audit Committee and earnings management literature that examines another possible method, specifically, real earnings management.

Time-varying price discovery in the eighteenth century: empirical evidence from the London and Amsterdam stock markets

This paper examines the time-varying nature of price discovery in eighteenth century cross-listed stocks. Specifically, we investigate how quickly news is reflected in prices for two of the great moneyed companies, the Bank of England and the East India Company, over the period 1723–1794. These British companies were cross-listed on the London and Amsterdam stock exchange and news between the capitals flowed mainly via the use of boats that transported mail. We examine in detail the historical context surrounding the defining events of the period and use these as a guide to how the data should be analysed. We show that both trading venues contributed to price discovery, and although the London venue was more important for these stocks, its importance varies over time.

From Knowledge to Firm Performance: An Empirical analysis of Intellectual Capital Impact in Polish and Dutch Listed Firms

Purpose: Empirical results about the direct relation of knowledge leading to fi nancial performance at a fi rm is dispersed. This study aims to examine the impact intellectual capital (IC) has on fi rm performance in Polish and Dutch listed fi rms. Methodology: Quantitative data is collected based on audited annual reports from the top 20 companies listed at the Warsaw Stock Exchange and Amsterdam Stock Exchange between 2007 and 2011. IC is measured using the VAIC methodology with its individual elements of HCE, SCE, and CEE. Direct relations between ICE, HCE, and SCE and fi ve measures of fi rm performance are statistically analysed. Results: The results suggest that there is a direct positive relationship between ICE and fi rm performance of Polish and Dutch listed fi rms, particularly with ROA, ROE, EP, and to a lesser extent with ATO. Firms listed in Poland provide a stronger positive ICE relation to ROA and ROE where fi rms listed in the Netherlands provide a stronger positive ICE relation to EP. Regarding individual elements, HCE relates highly positive to ROA, ROE, and EP where SCE fi nds only partial negative relation with ATO. Implications: Nurturing IC and in particular HC confi rms the importance of fi rm knowledge and employees with right training and other support. Additionally, further clarifi cation regarding SC is required. Originality: This paper presents the fi rst study of the IC relationship with fi rm performance in Poland as well in the Netherlands. Additionally, the comparison between fi rms of both countries establishes a novelty in IC research.

Time-Varying Price Discovery in the 18th Century

This paper investigates how quickly news is reflected in prices and the information shares for two of the great moneyed companies, the Bank of England and the East India Company, during the eighteenth century. These two English companies were cross-listed on the Amsterdam stock exchange and news between the capitals flowed mainly via the use of boats that transported mail. We examine in detail the historical context surrounding the defining events of the period, and use these as a guide to how the data should be analysed. We show that both trading venues contributed to price discovery, but the London venue was significantly more important for both stocks, although its information share gradually declined over time.

Euronext Stock Exchange Merger and Market Efficiency

This paper is among the first to examine the effect of Euronext stock exchange merger with Amsterdam Stock Exchange, Brussels Stock Exchange, Paris Bourse and Bolsa de Valores de Lisboa e Porto in terms of market efficiency improvement. Mean-variance, CAPM statistics, multiple variance ratio test, runs test, ranks and signs tests and stochastic dominance approach are employed to test the market efficiency of these four stock exchanges before and after the merger. We find that the Bolsa de Valores de Lisboa e Porto is more efficient in the post merger period. For the rest of stock exchanges, the merger process did not change the inefficient markets to efficient but we can see some improvements of efficiency.

Path dependence, change and the emergence of the first joint-stock companies

This paper presents a model of path dependence and change and focuses on the gaining of new institutional knowledge. The main thesis is that in ‘extraordinary’ historical situations the possibility of change increases as a result of external pressure and successful adaptation to it. The model is tested applying it to the case study of seventeenth-century United Provinces (Dutch Republic). Such a situation existed in the sixteenth–seventeenth-century United Provinces, due to their uprising against Spanish rule. Because there existed no strong central authority, the decision-makers had to develop new institutions in order to successfully capture the lucrative spice trade from their enemies. The solution was the joint-stock company, which, through the phases of a continuous decision-making procedure, developed into the ‘permanent’ Dutch East India Company (VOC) in parallel also to the development of the Amsterdam Stock Exchange.

Nonfinancial Performance Measures and the Incentive Intensity of CEO Bonus Contracts

Firms add nonfinancial measures to their CEO bonus contracts when a sole reliance on financial measures would not be informative about managerial effort. In this paper, we argue that adding nonfinancial measures to CEO contracts may not resolve the congruence problems that would originate from a sole reliance on financial measures. Thus, this paper investigates the assertion that companies optimally provide weak incentives if they lack undistorted performance measures (Baker, 2002). Using a sample of 164 Dutch firms listed on the Amsterdam Stock Exchange and explicitly taking into account the joint nature of decisions to assign a weight to nonfinancial measures and to select the appropriate incentive intensity through a 2SLS model, we find that firms that seek to provide strong incentives decrease the relative weight of nonfinancial measures in CEO bonus contracts. This coincides with prior literature that suggests that firms adjust for items in their reported earnings to improve their financial summary performance measure.

Ownership structure and the likelihood of financial distress in the Netherlands

This article examines the impact of ownership structure on the likelihood of financial distress of Dutch firms listed on the Amsterdam Stock Exchange (Euronext) from 1992 to 2002. We find that firms with higher levels of managerial shareholdings are less likely to experience financial distress. This finding is consistent with the alignment hypothesis that managers with higher ownership stakes are more likely to avoid financial distress. We also find empirical evidence that large outside shareholders reduce the probability of financial distress. Monitoring incumbent management by large outside shareholders might prevent sub optimal managerial behaviour and reduce the likelihood of financial distress. Finally, we find no evidence that high levels of institutional shareholdings are associated with a lower probability of financial distress.

Shareholder Value Effects of Joint Venture Companies in the Amsterdam Stock Exchange

암스테르담 증권거래소는 세계 최초의 주식회사인 “동인도주식회사”를 설립한 곳으로서, 현 재 “한국과 EU의 FTA” 협상이 진행 중이기 때문에 EU의 중심인 암스테르담 증권거래소에 주식을 합 작하여 상장하면 다른 EU국가의 증권거래소, 예를 들면 독일의 DAX나 프랑스의 증권거래소에 상장한 것과 같은 효력이 있을 것으로 예상되어 연구를 시작하게 되었다. 본 연구는 암스테르담증권거래소에 상 장한 합작투자 233개 업체를 대상으로 지난 12년간(1987～1998)의 데이터를 분석하여 모기업의 주주가 치 변동을 관찰하여 보았다. 본 연구 분석을 위하여 ‘Event Study'를 수행하였으며, 합작투자의 공고날짜를 기준일로 하여 주가동향 을 관찰하였다. 공고일은 네덜란드의 “Het Financieele Dagblad” 신문을 근거로 하였으며, “비정상적 수 익률(ARit)”은 시장모형(market model)을 사용하여 구하였다. 한편, 합작투자와 관련된 의사결정과정을 전략적 내용, 전략적 환경 그리고 전략적 통제 등의 3가지 측 면으로 분류하여 분석하였다. 첫째, Koh와 Venkaraman(1991)의 연구에 의하면 합작투자의 동기는 시장 적인 것과 기술적인 것이 서로 혼합 되어있는 것으로 분석되었다. 따라서 본 연구에서는 전략적 내용 분 석을 위하여 시장 요인과 기술 요인을 구분하여 분석하였다. 둘째, 전략적 환경 전략 의사결정과 관련된 변수들로 합작투자선(先)의 선정과, 국별 선호도 및 문화적 차이, 합작기업의 규모 등을 고려하였다. 셋 째, 기업의 소유구조 또는 지배구조에 있어서 두 합작기업이 균형을 이룰 때 합작투자기업을 성공적으로 운영하는데 도움이 된다는 연구가 있다(Bleeke and Ernst, 1993). 반면, Koh와 Venkaraman(1991)은 합 작투자 파트너의 파워가 클 때 더욱 효과적인 합작이 이루어진다고 주장하였다. 따라서 전략적 통제에서 는 합작기업간의 힘의 균형관계 등을 고려하였다. 이러한 선행연구들을 바탕으로 한 본 연구 분석결과에 의하면, 1987년부터 1998년 사이의 네덜란드 합작 투자기업들의 누적 초과수익률(CAR)이 (+)0.40%로 암스테르 상장기업과의 합작이 주주가치에 영향을 미치는 것으로 나타났다.

Is it Timing of the Date, of the News or is it Backdating of Option Grants?

This study investigates executive stock option grants at the Amsterdam stock exchange. The motive for this study is to examine the timing of the date and the news around option grants, and whether the option grant date is backdated. The empirical results provide evidence that that there are no significant abnormal cumulative returns in the period before the option grant date. However, we find significant abnormal cumulative returns during a period of 30 trading days after the option grant date, even for scheduled options granted before September 1, 2002. In addition, we have formed four different sub-samples: scheduled and unscheduled option grants, and, accounting for a change of the rulings as of September 1st, 2002 options granted before and after the latter date. Significant differences in the means of abnormal returns of the various sub samples are observed. These disappear for scheduled option grants after September 2002, but not for unscheduled option grants. The regression estimates for the periods before and after the introduction of stricter rulings in 2002 are consistent with our findings from the t-tests. The regressions run provide not only evidence that the option grants are timed, but also that the option grants are retroactively backdated. In addition, our findings show that earnings news releases around option grant dates are managed. Our findings are consistent with timing of news being a substitute for backdating and timing of the option grant date. Although after September 2002 stricter rulings regarding the option grant date reduce the opportunities to exploit private information, they do not disappear completely, notwithstanding the requirement of immediately publishing the option grants.

Corporate ownership structure and firm performance: Evidence from the Netherlands

This paper examines the relationship between corporate ownership structure and firm performance. For a sample of 100 Dutch firms listed on the Amsterdam stock exchange, we collect data on the shareholdings of the 5 largest shareholders and the total fraction of shares held by insiders. In addition, we collect information on the type of largest shareholder. Using a simultaneous equation model, estimated by three-stage least squares, to control for a potential endogeneity bias, we find a significant positive relationship between the holdings of the largest shareholder and firm performance. Likewise we find a significantly positive relationship for the stake held by insiders. Further testing provides some evidence that this relationship is nonlinear, i.e. at lower stakes insider ownership aligns management with shareholder, whereas at higher stakes entrenchment of management depresses performance. Splitting the sample into different types of owners provides some evidence that financials have a negative impact on performance, while other firms have a positive impact.

Explanatory & Predictive Power of Momentum Accounting - the AEX An Empirical Study of the Amsterdam Stock Exchange Component Companies (Het Verklarend En Voorspellend Vermogen Van Momentum Accounting)

The research question we want to answer in this paper is: have the financial variables of the triple-entry framework of momentum accounting explanatory and predictive power? A detailed example is presented of Royal Philips Electronics N.V. Although in this study we cannot generalize the result of this example on a statistical basis to a population we try to replicate it with other firms. To this purpose we use data of 17 of the 24 firms that that are listed on the AEX; the Amsterdam stock ex-change. We presuppose that when we find more confirmatory examples our confidence may grow in the underlying (accounting) theory. The empirical data used are quarterly financial statements data of van Royal Philips Electronics N.V. and the annual financial statements data of 17 out of the 24 AEX listed firms. Our analysis shows that it is possible to explain ex post the trend of net wealth of Philips as well as for 17 of the AEX listed firms and in more than halve of those cases the trend can be forecasted ahead one to three years.

Legal Insider Trading and Stock Market Reaction: Evidence from the Netherlands

This paper provides an analysis of legal insider trading on the Euronext Amsterdam stock exchange by using data published in the register held by the AFM, the dutch financial markets authority. The sample includes 822 transactions executed by corporate insiders between the beginning of January 1999 and the end of September 2005. Our analysis shows that the financial markets' response is not significant for purchases, and that the abnormal returns associated with the sales do not have the expected sign. However, over a longer time horizon, the average cumulated abnormal returns are positive for the stocks purchased, and negative for stocks sold by insiders. This result suggests either that insiders use long-term information for their trading activities or that they are able to time the market.

Ahold's divestment by stealth

PurposeReviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.Design/methodology/approachThis briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.FindingsPositioned as the world's third largest retailer after Carrefour and Wal‐Mart in 2002, Ahold is a major international supermarket and foodservice operator based in Amsterdam. Ahold's founder, Albert Heijn, opened his first grocery store in 1887, and the company first issued shares to the public in 1948 on the Amsterdam Stock Exchange. Since, then it has been primarily involved in retailing, operating under a variety of food and non‐food formats in western and Eastern Europe, Asia and the USA.Practical implicationsProvides strategic insights and practical thinking that have influenced some of the world's leading organizations.Originality/valueThe briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.