Context Of Capital Market Research Articles

AN ANALYSIS ON THE ROLE OF STOCK BROKERAGE HOUSES IN COMMUNITY DEVELOPMENT

This study investigates the role of stock brokerage houses in community development within the context of Bangladesh's capital market. Data and information are sourced from a variety of secondary sources, encompassing financial platforms like the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), credible news websites such as Investing.com, published literature, and official reports from regulatory authorities such as the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC). Quantitative data spanning the period from 2010 to 2019 are meticulously extracted from stock exchange databases as well as the IMF World Economic Outlook database. These datasets are meticulously structured and analyzed using tables, charts, and graphs. Amidst challenges such as market collapses and the COVID-19 pandemic, the resilience and growth of Bangladesh's capital market are evaluated. The results reveal that brokerage houses have a significant impact on community development in Bangladesh. For instance, the total traded volume reached Tk. 2,169,597 million in 2017, marking an 82.08% increase from the previous year. Sector-wise turnover data showed consistent investment trends, particularly in manufacturing, financials, and pharmaceuticals. These investments have led to job creation and infrastructure development, highlighting the role of brokerage houses in fostering employment and socioeconomic advancement. Additionally, the adoption of online trading platforms has driven technological advancement and financial inclusion. The findings of this study suggest that brokerage houses are crucial intermediaries in the capital market, contributing to economic growth, financial inclusion, and community development through their investment activities and corporate social responsibility initiatives.

Examining Global Resource Mobilization: Strategies and Hurdles in Accessing the International Capital Market

The role of finance is indispensable for business entrepreneurs as it fuels both fixed and working capital, driving growth and operational efficiency. Financial decisions are crucial for directing business growth from its inception through various phases. Corporate finance is pivotal in exploring alternative methods to finance fixed and working capital needs. Capital markets, including domestic ones like India's Securities Exchange Board-regulated and international markets, serve as vital platforms for businesses to secure funding and ensure smooth operations. Effective corporate governance, shareholder wealth maximization, regulatory compliance, profitable project funding, and global brand recognition are key goals for corporations to sustain and thrive. This paper aims to delve into the Overseas Depositories' role in international capital markets, highlighting their contribution to funding corporations globally. It will also discuss the significance of two-way fungibility in trading shares and depository receipts across borders, and how overseas depositories facilitate finance raising for corporations. Additionally, the paper will examine the trading dynamics of American and Global depository receipts vis-à-vis shares in the international capital market context.

Hacking Profits in Real Estate: The Influence of Capital Structure, Liquidity, and External Factors

This study seeks to empirically examine the influence of capital structure, liquidity, firm value, firm size, and external factors on profitability within companies operating in the property and real estate sector listed on the Indonesia Stock Exchange, utilizing sample data from 2018 to 2022. Through purposive sampling, 10 companies were selected as research subjects, employing panel data regression analysis. The findings indicate that liquidity and company size have a negative and significant impact on profitability. Conversely, inflation exerts a positive and significant influence on profitability. However, neither capital structure nor firm value significantly affect profitability. These results contribute to understanding the factors influencing the profitability of property and real estate sector companies within the Indonesian capital market context.

Government green procurement policies and corporate green total factor productivity

This paper empirically examines the impact of government green procurement policies on corporate green total factor productivity, based on the context of China's capital market. By constructing a difference-in-differences model, the empirical results indicate that government green procurement policies significantly enhance corporate green total factor productivity. The conclusions remain valid after a series of robustness tests. Heterogeneity analysis reveals that the positive impact of government green procurement policies on corporate green total factor productivity is more pronounced in non-state-owned enterprises and companies in regions with lower levels of marketization.

Capital market efficiency in transitioning Southeastern European countries

Purpose: This paper is a continuation of research in the series that examines the weak form of the efficient capital markets theorem in Southeast European transitioning economies. Model modifications are based on learnings through the previously established inapplicability of foreign exchange metrics. At the same time, the model is being expanded by incorporating new research markets, extending the time coverage to the longest duration to date, between 2005 and 2021, to cover economic bust and recovery periods and research inherent improvements in the capital market context, and adding new variables to provide more sturdiness and conclusiveness. Methodology: The paper applies the panel pooled mean group estimator by aggregating cross-country data. By using level series prime data instead of differentials, this method enables efficient use of information and resolves at best the identified market shallowness. Results: The statistical results of empirical research infer the inefficiency of the investigated markets with greater robustness and supplementary new information revealing more powerful corrective investor and policy behavior in collectively more mature markets. Conclusions: The findings firmly reiterate subpar capital markets performance in a prolonged and more comprehensive environment. The recommendations conclusively emphasize the importance of structural reforms to support sustainability through elementary setup drivers, such as transparency, governance, judiciary productivity, and policy support, inter alia.

Short-term financing sources in Africa: Substitutes or complements?

Using panel vector autocorrelation models (Panel VaR), we examine the dynamic interrelationships between short-term financing sources for a large sample of 8,464 firm-year observations from seven understudied developing economies over the period 1991-2015. On average, we find that short-term debt and trade credit are complements, while cash holdings are substitutes for short-term debt and trade credit. However, our further analyses show that the interrelationships between short-term financing sources are strong and significant before the financial crisis but diminish thereafter with contractions in credit supply. These changes highlight the impact of credit supply shocks on short-term financing policies of firms domiciled in less-developed capital markets. As firms in Africa, an exemplary less-developed capital market context, rely heavily on short-term financing sources, the dynamic interrelationships we document have important implications that are of interest to academics, practitioners, and policymakers alike.

THE RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND FIRM PERFORMANCE: UNDER THE MODERATING ROLE OF CORPORATE SOCIAL RESPONSIBILITY (CSR)

This paper investigates the moderating effect of Corporate Social Responsibility (CSR) on the relationship between capital structure and firm performance on the Chinese capital market. This paper applied a panel data regression technique using data composition represented by SSE180 index for a period spanning from 2010 until 2019. A total of 86 representative large listed firms was employed in this study for the period of 10 years with a total of 860 firm-year observation. The empirical results showed that debt has a significant negative relationship with firm performance. More importantly, this paper found that the level of CSR moderates the relationship between capital structure and firm performance. The study also found that, the relationship between capital structure and firm performance diminishing when the level of CSR is higher. In China capital market context, the debt ratio is quite high and CSR is a useful business strategy that could diminish the negative impact of capital structure on firm performance. Therefore, firms should comprehensively consider relevant influencing factors, such as CSR, and apply appropriate methods in determining the optimal capital structure in improving their firm performance.

Do firms effectively communicate with financial stakeholders? A conceptual model of corporate communication in a capital market context

We identify what constitutes effective communication between firms and their financial stakeholders in a capital market context and establish criteria against which effectiveness can be evaluated. To do this, we introduce the concept of connectivity from the communication studies literature. We conceptualise connectivity as comprising three components: textual connectivity, intertextual connectivity, and relational connectivity. Connectivity refers to the ability to connect different sections of a text (textual connectivity), to connect texts of different time periods or different genres (intertextual connectivity), and to connect firms with their audiences (relational connectivity). We then propose criteria for judging effective corporate communication in a capital market context. Finally, we assess how digital communication and social media provide opportunities for improving connectivity in corporate communication for a broader range of shareholders.

Voluntary disclosure in the context of convergence with International Accounting Standards in Brazil

Objetivo: Verificar a influencia do processo de convergencia as Normas Internacionais de Contabilidade na divulgacao voluntaria de empresas brasileiras listadas na BM&FBovespa. Metodologia: Foi concebida uma metrica de divulgacao voluntaria, sendo coletadas as informacoes em uma amostra aleatoria de 66 empresas com registro ativo na BM&FBovespa durante o periodo de 2005 a 2012. Para o teste de hipotese utilizou-se regressao com dados em painel de efeitos aleatorios. Resultados: A convergencia as Normas Internacionais de Contabilidade apresenta-se como um fator exogeno que afetou positiva e significativamente a divulgacao voluntaria no periodo analisado. Essa constatacao esta em linha com o racional de complementariedade entre a divulgacao obrigatoria e a divulgacao voluntaria. Contribuicoes: O estudo apresenta uma nova metrica para mensuracao do nivel de divulgacao voluntaria, com potencial de compreender a natureza da relacao entre ela e a divulgacao obrigatoria. No contexto do mercado de capitais brasileiro, regido pelo modelo stakeholder, o processo de convergencia as Normas Internacionais de Contabilidade induziu um aumento da qualidade da informacao voluntaria.

Determining Factors for Delisting of Companies Listed on BM&FBOVESPA

<p>Traditionally, the capital market has attracted the interest of scholars and researchers, motivated to understand the process of going public and trading securities of companies on a stock exchange. In this research context, an aspect had been neglected, something which indi cates a gap in the body of knowledge about the capital market and corporate governance: delisting of companies. We aim to identify the determining factors for delisting companies from the Commodity & Futures Exchange BOVESPA (BM&FBOVESPA). Methodologically, this research has related a set of variables collected from secondary data available on the database of the Securities Commission of Brazil (CVM), BM&FBOVESPA, and Economatica. By analyzing 227 listing cancellations, between 2001 and 2012, the results indicate that de listing of companies from BM&FBOVESPA is determined by the following factors: (i) greater concentration of ownership and control; (ii) lower free float; (iii) lower liquidity of shares; (iv) greater availability of cash; and (v) larger size. The fact that the controlling shareholder is a public or private company determines significant differences in the decision to delist. While in the first case cash availability is the most important factor, in the second liquidity is the main determining factor for delisting. From the academic viewpoint, this research extends the studies on delisting, still incipient in the Brazilian capital market context. For the capital market, identifying the characteristics of companies prone to cancel listing may prevent investors concerned about inherent risks at the time of acquiring shares by the controlling group interested in delisting.</p>

Modern Real Estate Portfolio Management (MREPM): Applications in Modern and Post-Modern Real Estate Portfolio Theory (MREPT/PMREPT)

Modern Real Estate Portfolio Management (MREPM): Applications in Modern and Post-Modern Real Estate Portfolio Theory (MREPT/PMREPT)

The Impact of Ownership Concentration on Firm Value. Empirical Study of the Bucharest Stock Exchange Listed Companies

The aim of this study consists in providing the first empirical evidence for the companies listed in Romania regarding the influence of ownership concentration on firm value. The empirical research was employed for a sample of companies listed on the Bucharest Stock Exchange (BSE), over the period 2007-2011, being estimated multivariate regression models for panel data, unbalanced, with fixed effects. The value of the companies was measured out by the instrumentality of Tobin's Q ratio, however adjusted with the purpose of taking into account the industry membership diversity of the selected sample. We considered distinctly the ownership of the first, the second, and the third largest shareholder, as well the sum of holdings of the two largest shareholders and the sum of holdings of the three largest shareholders. Therefore, the results sustain a lack of influence on firm value exhibited by the first largest shareholder, while the second largest shareholder positively influences firm value. By considering the ownership of the third largest shareholder we identified a positive influence, but down to a level of holdings of 13.08 percent, thereupon the influence becomes negative. Thereby, beyond the identified threshold we could perceive the reduction of the third largest shareholder’ concern regarding the process of directors’ monitoring, thus following the own aims’ achievement. Further, from the ownership concentration perspective only the sum of holdings of the three largest shareholders positively influences firm value. However, there was not identified any statistically significant relationship between the sum of holdings of the two largest shareholders and firm value. Accordingly, the results are influenced by the context of an underdeveloped Romanian capital market within the first largest shareholder ownership discourages the occurrence of another investors holding significant stakes.

Relationship between Oil Price Shocks and Stock Market Performance: Evidence for Select Global Equity Markets

In this article, we examine the relationship between oil price shocks and stock market behaviour using market index data for 15 sample countries. The sample countries are classified into four categories, based on their economic strength and oil exporting/importing status, to verify if the testable relationship varies across different economic settings. The study period ranges from 1 January 1993 to 31 March 2009. We find that on a pre-event basis, sample stock markets do not provide any extra normal returns. This implies that there are no serious leakages in oil price information, which could be exploited by investors in these markets. Further, after it is observed that irrespective of the nature of oil prices shocks (price increases and decreases), the high-growth emerging economies do provide significantly positive returns on post-event basis. Among the Asian economies, the Chinese stock market reacts to oil price shock in a lagged manner. Our findings are relevant for portfolio managers who are continuously on the lookout for global trading strategies that generate extra normal returns. From the policy makers’ perspective, given the high and stable demand for oil in the case of high growth emerging economies, it seems that supply side bottlenecks mainly cause the oil price shocks. Our work contributes to the market efficiency and behavioural finance literature in the global capital market context.

Aspectos Polêmicos da Arbitragem no Mercado de Capitais

ABSTRACT: The paper analyses the main outlines of the arbitral procedure under the capital market context, through the confrontation between the credibility and reliability requirements of any securities exchange and the specificities of arbitration. The progressive development of mandatory arbitral institutions linked to the main securities market, the subjective and objective extension of a statutory arbitral clause, and the clash between the institutional full disclosure principle of the capital market and the private duty of confidentiality in arbitration, are the main issues to be studied from a comparative perspective of arbitral institutions in Brazil, Europe and the USA. This may allow drawing an intersection where the protective principle of the securities exchange activity and the benefits of arbitration could coexist for an efficient dispute resolution instrument.

The justification of organizational performance in annual report narratives

In this paper, the nature of organizational discourse is theoretically underpinned by the concept of self-serving attributions, a type of causal reasoning that allows the writer to take credit for good news and avoid blame for bad news. We incorporated signaling theory to the extant theoretical framework for self-serving attributions in order to develop hypotheses for the expected levels of attributional bias in the justification of organizational performance. A sample of 49 companies was selected, both from a bad year and a good year regarding the capital market context. Each company's Letter to Shareholders was content analyzed in order to test our propositions concerning the presence and intensity of self-serving attributions in that section of annual reports. The results partially corroborate the proposed theoretical hypotheses, but the sample size is an issue in terms of robustness. Nevertheless, the results indicate that companies attempt to create a positive corporate image to external stakeholders even when negative performance occurs in a clearly favorable external context. Moreover, we observed that companies with positive performance in a good external context blame negative effects on the environment in a proportion equivalent to that observed for companies with positive performance in a bad year.

Attributional Statements in Annual Report Narratives: The Justification of Organizational Performance

In this paper the nature of organizational discourse is theoretically underpinned by the concept of self-serving attributions, a type of causal reasoning that allows the writer to take credit for good news and avoid blame for bad news. Based on motivational and informational explanations, we incorporate signaling theory in order to develop hypotheses for the expected levels of self-serving attributions in the justification of organizational performance. A sample with 49 companies was selected, both from a bad year and a good year regarding the capital market context. Each company's Letter to Shareholders was content analyzed in order to test our propositions about the roles of different combinations of performance and contextual factors as triggers of self-serving attributions. The results corroborate the theoretical hypotheses advanced, but the sample size is an issue regarding robustness.

Auditor conservatism and earnings management: Evidence from Tunisia

The aim of this paper is to examine the effect of the type of audit opinions on the earnings management measured by the discretionary accruals in the Tunisian capital market context. In particular, we investigate whether abnormal accruals are influenced by modified audit opinions. We find that the probability to manage earnings management to the decrease is related to the issuance modified audit opinion and the presence of No-Big Four auditors.

Intellectual capital and capital markets: additional evidence

PurposeThe purpose of this paper is to first examine whether intellectual capital (IC) information is considered in firm valuation. Next, to examine two issues: financial analysts' investment recommendations when faced with different combinations of performance levels (i.e. above or below industry average) of financial and IC measures, and the role of financial and IC measures with different performance levels and holding periods (i.e. short‐term vs long‐term) for the investment on analysts' recommendations.Design/methodology/approachThe first part of the paper used secondary (both archival and survey) data. The second part was an experiment.FindingsThe findings in the first part show that, after controlling for the effect of financial performances on firm value, measures of IC are still significant explanatory variables (of firm value). The second part shows that the financial and IC measures affect financial analysts' investment recommendations differently depending on the measures' levels of performance and the time horizon for holding the investments.Research limitations/implicationsThe limitations of the paper are as follows: the use of secondary data from a single country limits its generalizability; and the results of the experiment are parameterized by the research design such as the amount of information provided to the financial analysts. Extending the analyses to other settings and using time‐series data represent future research opportunities.Originality/valueThe research makes three contributions to the IC literature. First, it extends the studies on the relevance of IC in capital market research by broadening its scope to include measures of IC other than R&D intensity. Next, it provides evidence of the informativeness of IC measures in market valuation of firms and analysts' recommendations, thus lending credence to the arguments of reports and researchers for more external communication of IC information. Finally, this study is one of the first to examine a broader scope of IC in the capital market context and the use of IC by sophisticated market participants. With policy‐makers and standard‐setting bodies considering proposals to enhance information on IC in financial reports, it is important to broaden the scope of IC metrics and understand their role in enhancing firm value to develop a framework for reporting IC.

Firm acquisitions and earnings management: evidence from Greece

PurposeTo investigate whether acquiring firms listed in the Athens Stock Exchange, that completed mergers and acquisitions during the period 2001‐2003, tend to manipulate accounting earnings upward prior to the initiation and completion of the transaction.Design/methodology/approachThe focus is on discretionary accruals as a measure of managers' earnings manipulation. To estimate discretionary and non‐discretionary components of total accruals the time series Jones model is adopted.FindingsResults provide weak evidence of biased accruals reported by managers in the year preceding the announcement and the completion of the deal. The results seem to agree with those of Erickson and Wang who found no evidence of pre‐merger earnings management by a sample of acquiring firms that were involved in cash mergers.Research limitations/implicationsThe model applied, even if it is considered effective in discriminating abnormal from normal accruals, has been shown to have certain deficiencies, while simultaneously the time series data and number of firms used here could be considered as small. Within the aforementioned limitations further research could examine the effect of mergers and acquisitions in the stock price of the acquiring of target firms and the possibility of earnings management by target firms, since target managers may have different incentives to manipulate earnings.Practical implicationsFindings are of particular interest to Greek regulators for policy‐making purposes as well as to investors in the Greek capital market.Originality/valueTo the best of one's knowledge this is the first study to examine earnings management by acquiring firms in the European capital market context.

Picking up the pieces: impression management in the retrospective attributional framing of accounting outcomes

Self-serving attributional tendencies in annual report narratives are generally construed as purposive impression management behaviour. Attributional biases in accounting narratives could, however, be primarily the result of a cognitive informational process rather than of an external impression management process. Existing research results are equivocal on this point. In this paper we treat a capital market context as a pivotal variable to discern situations of strong and weak motivational influences and contrast the self-serving reasoning tendencies in listed and unlisted companies. A second purpose of the paper is to explore the impact of content characteristics of the explained effect in attributional statements on the self-serving tendencies. Our research reveals that self-serving tendencies in attributional behaviour, especially when operationalized as explicit impression-relevant attributional statements (entitlements, enhancements, excuses, causality denials and justifications), are significantly affected by contextual factors with motivational impact and, depending on the context, reflect attributional patterns that are counterintuitive from an informational perspective. The research results also indicate that the self-serving profile of the attributional explanations strongly depends on the nature of the accounting effect explained with ramifications on the listed/unlisted dichotomy and on the manner in which positive news is constructed in the directors’ reports of listed companies.