Capital Market Research Research Articles

A Research Path on Islamic Capital Market Product

This study aims to see the development of research on the topic of Islamic Capital Market Product and research plans that can be done based on journals published on the theme. This research uses a qualitative method with a bibliometric analysis approach. The data used is secondary data with the theme "Islamic Capital Market Product" which comes from the Dimension database with a total of 400 journal articles. Then, the data is processed and analyzed using the VosViewer application with the aim of knowing the bibliometric map of research development "Islamic Capital Market Product" in the world. The results of the study found that there were 7 clusters with the most used words being Islamic finance, Islamic capital market, capital market, covid, and growth. Then, the research path topics related to Islamic Capital Market Product are Financial Performance in Islamic Capital Market, Potential Growth in Islamic Market Achievement, Islamic Finance Application in Capital Market, Pandemic Effects on Sukuk Market Returns, Knowledge Influence on Islamic Capital Market, Standards in Islamic Capital Markets, and Sharia Mutual Funds and Market Growth.

The Quality of Blume and Vasicek Betas for forecasting systematic risk: Evidence from a German stock portfolio

Abstract In both practical applications and empirical capital market research the beta factor is often estimated for the future period using an OLS regression analysis based on historical data. However, these betas are often not reliable for the future. For this reason, methods have been developed to correct or adjust the (raw) beta. The aim of this study is to find out to what extent the forecasting quality of a stock beta can be improved by Blume Beta, Vasicek Beta and a simple variant of Blume Beta ("Adjusted Beta"). For this purpose, an empirical analysis is carried out on the basis of 10 stocks included in the German stock index DAX. For the entire period under review, it can be observed that all three adjustment methods tend to improve the forecast quality compared to the raw beta, with the simple “Adjusted beta” leading to the best values. The examination of two subperiods, one covering the financial and economic crisis of 2008/2009 and the other the Corona pandemic, shows that the forecasting quality tends to be lower when looking at individual stocks compared with the overall period. However, according to the values (i.e. averages of all stocks) of the forecasting quality measures used in this paper, the adjustment procedures mostly produce better values than raw beta in both subperiods. JEL classification numbers: G11. Keywords: Adjusted beta, Blume beta, Vasicek beta, Mean Squared Error.

Does capital market liberalization enhance overseas market power of investment firms? An empirical study based on Chinese multinational corporations

This study empirically analyzes the 2012–2022 data of Shanghai and Shenzhen A-share investment-oriented listed companies to determine the impact of capital market liberalization on investment firms’ overseas market power. It finds that both capital market liberalization and research and development investment enhance the overseas market power of investment firms. The impact of capital market liberalization varies based on the different ownership properties and life cycles of firms.

Distributed Ledgers and Secure Multiparty Computation for Financial Reporting and Auditing

To understand the disruption and implications of distributed ledger technologies for financial reporting and auditing, we analyze firm misreporting, auditor monitoring and competition, and regulatory policy in a unified model. A federated blockchain for financial reporting and auditing can improve verification efficiency not only for transactions in private databases but also for cross-chain verifications through privacy-preserving computation protocols. Despite the potential benefit of blockchains, private incentives for firms and first-mover advantages for auditors can create inefficient under-adoption or partial adoption that favors larger auditors. Although a regulator can help coordinate the adoption of technology, endogenous choice of transaction partners by firms can still lead to adoption failure. Our model also provides an initial framework for further studies of the costs and implications of the use of distributed ledgers and secure multiparty computation in financial reporting, including the positive spillover to discretionary auditing and who should bear the cost of adoption. This paper was accepted by David Simchi-Levi, finance. Funding: The authors gratefully acknowledge research support from the FinTech Laboratory at J. Mack Robinson College of Business at Georgia State University, the Center for Research in Security Prices at the University of Chicago, the Ripple University Blockchain Research Initiative, and the Smith AI Initiative for Capital Market Research at the University of Maryland. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2023.02577 .

Sejauh Mana Pembahasan Pasar Modal Syariah? : Sebuah Analisis Scientometric

This research aims to map the development of Islamic capital market research and trends, as well as how this topic is developing in various countries and the themes that dominate the literature based on journals indexed by Scopus. The method used is descriptive qualitative by analyzing data from 69 documents published from 2000 to the first quarter of 2024. For further analysis, researchers used Biblioshiny software, a free tool supported by R. The results show that discussions regarding the Islamic capital market are not only limited to in Muslim-majority countries, but also gets attention from non-Muslim countries. There are three topics related to sharia capital market trends, namely; The Role of the Government and Performance of the Sharia Index, Islamic Law on Sharia Capital Markets, and Investment and Economic Growth. The practical implications of this research can be utilized by investors, governments, regulators and companies or SMEs who can use the Islamic capital market as an instrument to seek capital for their businesses. Suggestions for further research could be to use a better database such as WoS for more comprehensive results.

Analisis Faktor yang Mempengaruhi Minat Mahasiswa dalam Berinvestasi

This study aims to examine the influence of capital market training, financial literacy, research benefits, and research motivation on the investment interest of students from the Faculty of Economics and Business at Muhammadiyah University of Surakarta. Data were collected using a questionnaire through purposive sampling, with 86 respondents. The research employed validity testing, reliability testing, classical assumption testing, and multiple linear regression analysis. Findings from the t-test indicate that capital market training, financial literacy, investment benefits, and investment motivation significantly affect the investment interest of students in the Faculty of Economics and Business at Muhammadiyah University of Surakarta.

Motivations for Socially Responsible Investing: The Impact of Attitudes, Subjective Norms, and Financial expectations

This study looks forward to exploring and understanding what the reasons for the desire of retail investors in might be making Socially Responsible Investments (SRI) in the Chinese stock market and to get an estimate of how valid the theory of reasoned action (TRA) could be. This is intended to look at how such factors as attitude, subjective norms, financial expectations, and risk propensity influence investors to engage in SRI in China. This research builds on previous studies that introduced financial expectations as a crucial new construct, enhancing the depth and rigor of TRA model in examining investment intentions. This assumption posits that investors comprehensively consider the investment situation, weighing not only its societal impact but also its financial returns, and only after considering these outcomes comprehensively will they make decisions on SRI. Risk propensity has been used as moderator in this research model relationship. Whether risk propensity influences the association between attitude, subjective norms, and financial expectations with investment intentions has been test in this study. The study results show risk propensity plays a significantly moderate role in relations of attitude, subjective norms, and financial expectation to intentions with the analysis indicating a positive effect. Its results will be able to provide more reference for the SRI studies and a new angle for capital market researchers, market information providers, and investors.

Islamic Capital Market Research in Scopus Indexed Journals Q1: A Review

This study tries to review the research around Islamic stock and Islamic capital market on reputable journals. It uses descriptive statistical analysis based on selected 88 article publications or papers related to Islamic stock, with international journals indexed by Scopus Q1. The entire sample journal publications have been published for ten years from 2009 to 2019. The results show that Islamic stock and capital market research is still dominated by empirical research (90%) rather than concept research (10%). In addition, the average time of journal publication is between 8 and 9 months. There are at least 17 Q1 Scopus journals that publish Islamic capital market and the most research with Pacific Basin Finance Journal, Journal of Business Ethics, Journal of Economic Behavior & Organization, Journal of International Financial Markets, Institutions & Money, Journal of Corporate Finance, and Journal of Banking and Finance. Furthermore, the comparison of quantitative research (88%) is still more than the qualitative approach (12%).

Application of positive accounting theory in capital market research & market response to accounting disclosures

This research examines Positive Accounting Theory and its relationship with the capital market. This theory is based on three hypotheses that underlie managerial accounting theory. Using a qualitative descriptive approach, this research presents an overview of the application of Positive Accounting Theory and capital market research methods. Markets are explained through economic models that include decision trees, supply and demand, and game theory, with external factors such as competitors, consumer behavior, and political and monetary policy influencing the market. In the corporate context, the application of Positive Accounting Theory varies according to the characteristics and internal conditions of the company. However, the use of positive accounting can have a significant positive impact on company sustainability as revealed in the results of previous research. Positive Accounting Theory describes social phenomena as the result of individual decision making based on rational behavior to maximize utility, especially in the context of capital markets.

Structural Equation Modeling in Archival Capital Markets Research: An Empirical Application to Disclosure and Cost of Capital

ABSTRACT Structural equation modeling (SEM), an empirical methodology underutilized in archival research, enables researchers to examine paths linking constructs. SEM consists of two components: a measurement model that generates common factors from observed variables and a path model that links the factors. We discuss SEM’s components, estimation, advantages, best practices, and limitations. We illustrate SEM with an application to disclosure research. Unlike some prior research, we find voluntary disclosure quality is negatively associated with cost of capital, both directly and indirectly through information asymmetry, even after controlling for earnings quality’s direct and indirect associations with cost of capital. We believe SEM offers fruitful avenues for future research because it allows flexibility in modeling relations guided by theory, enables tests of underlying theoretical mechanisms, provides tools to address measurement error and missing data, and estimates simultaneous equations. SEM may be useful in settings that currently use path analysis or principal component analysis. Data Availability: Data used in this study are available from public sources identified in the paper. JEL Classifications: M41; C30.

Corporate risk disclosure and cost of capital: Does measurement matter?

AbstractThis study argues that different definitions/perceptions of risk information could affect investors' decisions differently. Using a sample of 328 non‐financial UK firms and departing from existing literature, this study measures corporate risk disclosure (RD) via computerized content analysis to capture four different perspectives of defining RD. This study investigates (i) the effects of these RD measures on the Cost of Capital (COC), (ii) the influence of analysts' coverage on the relationship between RD and COC, and (iii) whether the RD nature (favourable/unfavourable) might affect COC differently. Lenders and equity holders are found not to consider any risk information expressed as a variation around a target, while only lenders consider risk information that reveals negative outcomes. However, lenders and equity holders consider risk information that expresses negative and positive outcomes together. Besides, firms that disclose extra risk information and have a large analyst following suffer from a higher Cost of Equity (COE) compared with those with fewer analysts following. Additionally, lenders impose a lower interest rate on firms with a higher unfavourable RD, while equity holders ask for lower returns from the firms with a higher favourable RD. The study has significant implications for capital market participants, researchers, and policymakers.

Illustrating the First Half-Century of Empirical Capital Markets Research in Accounting in Pictures

Illustrating the First Half-Century of Empirical Capital Markets Research in Accounting in Pictures

Bibliometric Computational Mapping Analysis of Publications on Financial Technology in Islamic Capital Market

AbstractPurpose – This study aims to explore and categorize research literature on Financial Technology in Islamic Capital Market systematically by mapping and visualizing it through bibliometric analysis using VOSviewer.Methodology - The research from publications that have appeared in journals that are indexed by Google Scholar served as the foundation for the article data used in this study. A reference manager tool called Publish or Perish is used to gather research data. A literature review on the subject we chose was done with the help of the program Publish or Perish. Findings - The results show that research on Financial Technology in Islamic Capital Market is separated into 3 terms: Financial Technology, Islamic, Capital Market. The term "Financial Technology" is associated with 168 links with a total link strength of 581. The term "Islamic" has 191 links with a total link strength of 661. The term "Capital Market" has 219 links with a total link strength of 840. While the popular Islamic capital market research was carried out in 2019, namely 134 studies. Keywords: Bibliometric, Computational maping analysis, Financial Technology, Islamic Capital Market, VOSviewer

Impact of capital market performance on economic growth in Nigeria: a systematic review

A systematic review of Capital market research from 2012 to 2021 identifying relevant features and characteristics of these studies and thereby proffering suggestions for future research. The study used the Systematic Quantitative Assessment Technique (SQAT), a methodology for the identification and selection of high-quality peer-reviewed journal articles, all selected journal articles studied the impact of the capital market on economic growth. A total of 51 Journal articles; were used for the review. Analysis revealed that many of the studies were conducted in Nigeria, while some articles were from different continents, but were significantly empirical. The focus of many Capital market article themes was studying the Capital market and how it influences economic growth. A limitation was the use of high-quality academic database that could not provide enough articles for the review; hence, the use of Google Scholar open search for the selection of relevant articles. The study concluded that capital market performance influenced economic growth even though with disparity among different nations due to the difference in the level of development of capital markets across the globe. It was recommended that research on capital markets requires more attention due to the clear nexus between the capital market performance and economic growth.

Islamic Capital Market Research: A Bibliometric Visualization based on Scopus ‎Database (2000-2022)

The Islamic capital market has emerged as a critical player in Islamic social ‎finance, providing a Shariah-compliant alternative to traditional capital markets for ‎Muslim customers. With a plethora of research in the field of Islamic finance, ‎there is a growing body of empirical views regarding new enhancements in the ‎Islamic capital market. Thus, it is imperative to understand the emergence of ‎research in this area to conduct further studies on various aspects. In this study, ‎data was extracted using the Scopus database, with "Islamic Capital Market" as the ‎reference in "Article title, Abstract, and keywords," specifying the duration from ‎‎2000 to 2022. Various software tools such as VOS viewer, R studio, Biblioshiny, ‎and Excel were employed to apply bibliometric methods for a comprehensive ‎analysis of past research on Islamic Capital Market through different visualization ‎methods.‎ The findings reveal a clear research gap in the existing literature on Islamic Capital ‎Market. While available research covers historical background and general ‎discussions, significant areas, such as technology's use for innovation in the ‎Islamic capital market, are not widely discussed. It is also noted that until 2011, ‎there was no significant increase in research in this field. However, since then, ‎numerous empirical and theoretical studies have been conducted, and it is expected ‎that this growth will continue in the coming years. This study contributes to the ‎understanding of the current state of research in the Islamic capital market and ‎provides a basis for future research in this area. ‎

Risk Factors in the German Stock Market: Can Sentiment Improve the Performance of Traditional Multifactor Models?

Capital market research usually focuses on the investment decision of a risk-averse investor, who determines the relationship between risky assets and risk-free investment. Furthermore, numerous capital market models assume normally distributed security returns and rational investors. In this framework, ex-ante investment decisions depend solely on the expected return, risk of investment opportunities, and investor risk affinity. For decades, empirical research findings have criticized this idealized framework. New risk factors were empirically confirmed and established. This study attempts to shed light on this issue. A comparative analysis considers the Fama-French and Carhart factors and a principal component analysis based sentiment-risk factor considering 76 sentiment indicators to examine the possible explanatory contribution to German stock market returns.

AN ANALYSIS OF THE IMPORTANCE OF RESEARCH AND DEVELOPMENT: EVIDENCE FROM CAPITAL MARKET OF BANGLADESH

There are various economic indicators that demonstrate the strength or weakness of a country's economic condition and Gross Domestic Product is one of them, with capital market turnover contributing significantly to GDP. The broad objective of the study is to show an analysis of the importance of research and development of capital market of Bangladesh. And also is to provide identify the investors perception about the research and development of capital market of Bangladesh and give some recommendations and strategic insight to improve the quality research to contribute on future development of the capital market of Bangladesh. Moreover, How Capital Market Research will help to improve the capital market growth, finding new opportunities, diversifying market products and segmentations, improving Market efficiency, attracting foreign investment, increasing liquidity as well as making investment decisions. The research is based on a structured questionnaire survey procedure. The findings revealed that investors are interested in investing in the secondary market with lack of enough knowledge, confidence and market expertise.

The Albanian Mutual Funds during the COVID pandemic

The COVID-19 pandemic caused a lockdown of a global scale and subsequent enforcement ofit had an impact in the capital markets, and the Albanian mutual fund industry would not remainan exception. Such crisis put the industry into an unprecedented stress test. This paper usesqualitative research method to identify the challenges that were faced by the mutual fundindustry during the beginning of the pandemic. This includes the fund flow perspective,secondary debt markets, the shifts of regulations and the behavior of investors. The conclusionsthat will be drawn from this study are aimed to help capital market investors and researchers indrawing strategies in the Albanian market during crisis times. Albania is recognized as anemerging economy and during its ongoing stage of development, the COVID-19 pandemiccaused turbulences in the economic stability of the country. With many measures put in motionin order to reduce the impact of the pandemic upon the population, all the sections of theeconomy have been facing disruption. The capital market, likewise, was met with a lot ofchallenges during this period. Although, history has shown that the Mutual Fund (MF) industryhas always bounced back significantly after taking a hit. Considering the impact of the crisis, theregulator, Financial Supervisory Authority (FSA), closely supervised the liquidity to ensure themutual funds would be able to operate in stressful conditions and in the best interest of theinvestor. For this study, a Qualitative research method is applied by using Histographicalresearch approach, regarding the past and present events that are associated with the AlbanianMutual Fund Industry. Furthermore, data from regulator websites, company websites, businessnewspapers in physical and digital forms are used in the study as well as research papers.Moreover, data from financial statements of the Mutual Funds (MFs) has been sourced from thewebsites of Asset Management Companies (AMCs).

Is Violation of the Random Walk Assumption an Exception or a Rule in Capital Markets?

Both the efficient market hypothesis and modern portfolio theory rest on the assumptions of the Gaussian probability distribution and independence of consecutive returns. This paper provides a brief excursion into the history of capital market research. A measure of long-range dependence (Hurst exponent) was applied to daily returns of selected stock indices and individual firms. The Hurst exponent was estimated using rescaled range analysis. The estimates are based on an unusually large sample of empirical-time series from capital markets. This method distinguishes whether the data-generating process follows random walk or exhibits antipersistent or persistent behavior. Both the efficient market hypothesis and modern portfolio theory assume that the data-generating process has no memory, i.e. follows Brownian motion. The random walk process is characterized by a Hurst exponent value of 0.5. Values greater than 0.5 and less than 1 indicate a persistence of local trends. Values between 0 and 0.5 indicate a process that reverts to the mean more often than a random process (mean-reverting process). The results indicated that the series of daily returns exhibit predominantly persistent or antipersistent behavior. Therefore, Brownian motion cannot be perceived as the norm for describing stock market behavior. These findings challenge the assumption of a random walk in stock prices, valuation models and assessment of risk.

The Impact of COVID-19 on the China Online Video Industry

This paper is aimed at analyzing the impact of COVID-19 on the Chinese online video industry. The hypothesis is that since people had more time to spend on leisure during the quarantine, the online video industry should be positively affected. Using methods such as collecting data from consulting firm’s research reports, analyzing news events, and summarizing evidence from security firm’s capital market research reports, I concluded that the pandemics did bring a short-term increase in people’s attention to the online video industry, opened up new opportunities for creative business models, yet also posed potential threads shall the virus strike again in the future.