Country's Stock Research Articles

Impact of Domestic Institutional Investors on Foreign Institutional Investors in India: An Analysis

Foreign institutional investors (FIIs) play a vital role in the stock market of a country and Indian stock markets are no exception to this. FIIs bring liquidity, buoyancy and growth in stock markets but at the same time they also enhance the level of volatility and instability. Over past few years the stock markets in India have shown an impressive growth. The stock market indices are making new strides and increasing number of shares are making new highs. Following India’s impressive growth story, increasing corporate profitability and competitiveness, and better integration with the world economy, the investment by foreign institutional investors (FIIs) in the stock markets of India has gone up tremendously. Investment decisions of foreign institutional investors in India are affected by so many factors. Investment behavior of domestic institutional investors (DIIs) is one such important factor. This research paper is an attempt to analyze the impact of domestic institutional investors on the investment decision of foreign institutional investors in India. In other words, this study explores whether Domestic Institutional Investors affect the investment decisions of Foreign Institutional Investors in India or not. For this purpose, researchers have used regression analysis. Mutual fund investments have been taken as proxy for investment by DIIs. Investment patterns of FIIs and DIIs have been divided into eight variables i.e. FII Equity Purchases, FII Equity Sales, FII Debt Purchases, FII Debt Sales, MF Equity Purchases, MF Equity Sales, MF Debt Purchases and MF Debt Sales respectively. The study reveals that investment decisions of DIIs affect the investment decisions of FIIs.

A critical assessment of Guyana's sustainability pathway: Perspectives from a developing extractive economy

The primary purpose of this research article is to present existing and forecasted sustainability indicators for Guyana in order to assess the country's sustainable development pathway. Genuine Savings, Carbon Emissions and Forest Cover were selected as appropriate measures of weak sustainability to investigate the country's sustainability trajectory. Further exploration of macro-economic variables such as natural capital stocks, wealth accumulation, resource rents and economic growth as empirical indicators, revealed that despite the effective forest management policies currently implemented in the country, Guyana is not on a sustainable pathway especially on the outlook for Genuine Savings. The country will experience an increase in economic growth primarily from the expansion of its oil sector. The potential boom in the economy from the non-renewable oil industry will provide a surge in foreign exchange that will require a robust investment structure to utilize resource rents in building the country's renewable capital stock. Positive Carbon Emission predictive trends emerging from this study are indicative of the country's growth towards more carbon intensive industries as the potential oil industry can stimulate a positive emission rating globally, indirectly from downstream industries on the international markets that purchases the country's oil.

КОНЦЕПТУАЛЬНІ ЗАСАДИ ФУНКЦІОНУВАННЯ ОРГАНІЗАЦІЙНО-ЕКОНОМІЧНОГО МЕХАНІЗМУ РОЗВИТКУ ЖИТЛОВОГО ФОНДУ УКРАЇНИ

The article summarizes the latest challenges to the management of the country's housing stock in the context of global challenges provoked by the military aggression of the Russian Federation. For this purpose, the content of the category "organizational and economic mechanism" was investigated, part of the existing scientific approaches to the consideration of its essence were singled out. Also, on the basis of the analysis of individual approaches to its interpretation, the author's interpretation of the category "organizational and economic mechanism of housing stock development" was proposed, which made it possible to single out its specific features and role in the life support of society, preservation of the country's national security.A critical analysis of approaches to the interpretation of the category "organizational and eco-nomic mechanism" made it possible to propose an author's approach to the interpretation of the cate-gory organizational and economic mechanism of the development of the housing stock as a multifaceted economic category, the action of which is aimed at ensuring a continuous process of effective interaction of all its participants with the aim of maximally providing for their own needs and interests through the creation, restoration, renovation and management of existing housing infrastructure.In order to improve the existing organizational and economic mechanism for the development of the housing stock, an author's system of its fundamental principles was proposed, which was laid as the basis of the latestarchitecture of its construction. An author's approach to the construction of an algo-rithm for the implementation of the organizational and economic mechanism for the development of the housing stock aimed at ensuring the systematicity and continuity of its operation is proposed

The Influence of Oil Prices on Stock Market Returns in Saudi Arabian Companies: The Implementation of Econometric Models

The countries in the sample are of special importance, as they have different rates of growth, different important characteristics of the financial system and levels of stock market progress. The research looks on equity market growth and measures its foreign economic effect, not in terms of profitability to investors (not beyond the scope of our study), but in terms of progress relative to the scale of these economies and the capital expenditure fund needs of those countries. The data used in this study were taken from GCC's monthly time series over the 2008-2018 period. Such factors are actual interest rates, global development level, commodity market returns on commodities and the true price of oil (in US dollars). Thomson Reuters DataStream, Bloomberg and OECD database gather data for this study. For this study, the actual interest rate was selected as this element illustrates market swings. The Industrial Production Index has defined it since the overall energy consumption in an economy is calculated by the amount of products and services generated in the region. The research implemented and econometric approach throughout addressing data from 2008 till 2018 which means 10 years to study the impact of oil prices, exchange rates and their impact on stock market, case Saudi Arabia. The key results showed that the contemporary and postponed impacts on economic development in either capital market liquidity, as measured by turnover or economic change, as measured by the institutional efficiency index. The relationship predictor (investment / Turnover ratio) was seen for the Arab countries to have an important result from the robustness measure. Implementing the strategy of gross capital expenditure expansion and the turnover partnership will lead to a positive impact on the connection between country expenditure and stock market liquidity during the competitive growth model.

Is there a home field advantage in global markets?

International equity mutual funds increasingly hire managers from countries linked to their geographic mandate. We show these funds with “home-linked managers” exhibit a strong bias to invest in stocks of the managers' home countries and attract more flows. Portfolios of stocks from countries in which a fund has a home-field advantage outperform those managed by funds without home-linked managers. We are unable to identify specific sources of an information advantage associated with the home-linked manager's performance. But an analysis of fund flows reveals a role of investor trust in home-linked managers earned primarily through past superior performance.

Investment environment, stock market perception and stock investments after stock market crash

PurposeThis study examines how the importance of external investment environment factors affects stock market perception, and how stock market perception affects stock investments after stock market crash witnessed by individual investors in one of the emerging stock markets.Design/methodology/approachA cross-sectional survey was administrated among 223 individual investors who experienced stock market crash in 2010–2011 in Bangladesh, and the proposed model was tested by the partial least squares-structural equation modeling PLS-SEM model.FindingsFindings show that the importance of Bangladesh's stock market performance, government policy, economic issues and neighboring country's stock market performance have effects on investors' stock market perception. This perception, in turn, decreases monthly stock trading and short-term investment horizon. The findings further show the mediating effect of stock market perception.Practical implicationsInvestors need to carefully consider the external investment environment when they form their stock market perception, as this perception drives stock investments. Analogously, regulators should ensure releasing timely and updated statistics on external investment factors.Originality/valueAddressing those investors who encountered stock market crash, a set of external investment environment issues, stock market perception and stock investments are new in the literature.

The Symmetric and Asymmetric Time-Varying Causality Relationships Between the COVID-19 Outbreak and the Stock Exchange: The Case of Selected Countries

In this study, the effects of COVID-19 (mortality rate, case rate, and bed capacity) on the stock market was examined within the framework of the efficient market hypothesis. Unlike other studies in the literature, we used the variable of bed capacity besides the mortality rate and case rate variables. The relationship between the mentioned variables, using daily data between December 31 of 2019 and November 10 of 2020, has been analyzed with time-varying symmetric and asymmetric causality tests for China, Germany, the USA, and India. Considering that the responses to positive and negative shocks during the pandemic process may be different and that the results may change depending on time, time-varying symmetric and asymmetric causality tests were used. According to the time-varying symmetric causality test, stock markets in all countries were affected in the period when the cases first appeared. A causal relationship between COVID-19 and country stock markets was found. The results showed that the effects of the case rate and bed capacity on the stock market occurred around the same time in Germany and the United States; however, these dates differed in China and India. According to time-varying asymmetric causality test findings, the asymmetric effect of the pandemic on the stock market in countries emerged during the second wave. The findings showed that the period during which positive and negative information about the pandemic intensified coincided with the period during which the second wave occurred; besides, the results show the effect of this information on the stock market differed as positive and negative shocks.

Weather-induced variability of country-scale space heating demand under different refurbishment scenarios for residential buildings

The decarbonisation of residential heat through integration with the power system and deployment of refurbishment policies is at the core of European energy policies. Yet, heat-electricity integration may be challenged, in practice, by the large variability of heat demand across weather years. Current approaches for residential heat demand simulation fail to provide insights about the extent of such variability across many weather years and about the benefits potentially brought about by nearly zero-energy buildings. To fill this gap, this work develops an open-source space-heating demand simulation workflow that is applicable to any country's building stock. The workflow, based on a well-established lumped-parameter thermodynamic model, allows capturing sub-national weather-year variability and the mitigation effects of refurbishment. For Italy, different weather years lead to variations in heat demand up to 2 TWh/day, lasting for several days. Moreover, some weather regimes produce spatial asymmetries that may further complicate heat-electricity integration. The refurbishment of about 55% of buildings constructed before 1975 could substantially mitigate such oscillations, leading to a 31–37% reduction of yearly heat demand, primarily in colder regions. Intra-day heat demand variations, driven by user behaviour, are not substantially impacted by refurbishment, calling for the simultaneous deployment of flexible heat generating technologies.

The Impact of COVID-19 Pandemic on Emerging Country Stock Markets: Evidence of the Value Effect

ABSTRACT We examine the impact of the COVID-19 pandemic on seven emerging stock markets by focusing on the value effect. Our results show that there are significant differences in the value premia before and during the pandemic. Furthermore, the traditional value proxies are no longer good predictors of future stock returns. To further capture the impact the pandemic’s progress on stock returns, we estimate Fama-MacBeth regressions by introducing proxies of the pandemic. We uncover heterogeneous responses of emerging markets to the pandemic. These findings provide a wealth of insights on the presence and driving force relevant to the value effect.

Influence of COVID-19 pandemic on the tourism sector: evidence from China and United States stocks

ABSTRACT The coronavirus disease (COVID-19) has adversely impacted the globally interconnected economy and brought the tourism sector to a temporary standstill. As such, this study aimed to investigate the spillover effect of industrial sectors by emphasizing the tourism sector. The study data was gathered from China and The United States (US) between 2019 and 2020 (pandemic period) using the Multivariate Generalised Autoregressive Conditional Heteroscedastic-Dynamic Conditional Correlation (MGARCH-DCC) and Wavelet Coherence Transform (CWT) techniques to analyse the investment holding period. Country-wise, the sectoral return volatility in China was significantly higher than the US counterpart. Additionally, the intra-sector correlation analyses demonstrated that Chinese sectors successfully mitigated the intra-sector correction in the last quarter of 2019. A short-term holding period was also suggested for investors in China while a long-term counterpart was recommended for investors in the US. Regarding the Chinese and US industrial sectors in the first quarter of 2020, it was mutually concluded that both country stocks reflected high volatility. The tourism sector was also negatively affected throughout the pandemic period (between 2019 and 2020). Essentially, this study offered practical contributions to investors, mutual fund holders, and brokers.

Carbon flows from trade in harvested wood products using different accounting approaches

Carbon flow in forest products trade will affect the report of a country's carbon stock. This will have an impact on a country's contribution of carbon flows. Based on the analysis of China’s forest product trade, this paper uses the stock-change approach, the production approach and the atmospheric-flow approach to calculate the changes of China's forest products trade carbon flows. Different carbon flow measurement approaches have very different results. From the perspective of the contribution of forest products to carbon flow, the production approach of calculation for forest products trade carbon flow has the largest contribution to atmospheric carbon flows. However, the calculation results of the stock-change approach and the atmospheric-flow approach are just the opposite, that is, the calculation for forest products trade has a negative contribution to China's carbon sinks, and forest products trade has become a source of carbon emissions.

COVID-19 and Two different Stock Markets: An Event Study Analysis

In this study, we examine two different stock markets’ response to the COVID-19 pandemic using event study methodology and a novel linear regression model. We use LSE (UK) as a proxy for the developed countries stock market and DSE (Bangladesh) as a proxy for the developing countries stock market. Using the daily COVID-19 confirmed cases and deaths and stock market returns data from these two countries (UK and Bangladesh) over the period November 01, 2020 to August 07, 2020. Our main research question was, which stock market suffered more during the COVID-19 pandemic, whether developed countries stock market or developing countries stock market. We find that developed countries stock markets (LSE as proxy) responded negatively to the growth in COVID-19 confirmed cases and deaths in COVID-19. We further find that developing countries stock markets (DSE as proxy) did not responded to the growth in COVID-19 confirmed cases and deaths in COVID-19.

An Empirical Investigation of the Relationship between Bitcoin and Developed and Developing Country Stock Markets

An Empirical Investigation of the Relationship between Bitcoin and Developed and Developing Country Stock Markets

Ownership structure, board independence and auditor choice: evidence from GCC countries

PurposeThis paper investigates the role of board independence in determining the relationship between firm ownership and auditor choice.Design/methodology/approachThe research uses a logistic regression to test the direct and indirect effects of ownership structure on the decision to hire a high-quality (Big 4) audit firm. The sample consists of 207 non-financial firms listed on the Gulf Cooperation Council (GCC) countries stock markets between 2009 and 2016.FindingsEmpirical findings show that family ownership is associated with a negative and significant coefficient suggesting that an increase in family ownership decreases the likelihood that the firm will employ a Big 4 auditor. This finding suggests that family owners are reluctant to impose external monitoring. Furthermore, we find a positive relationship between institutional ownership and auditor choice supporting the conjecture that institutional investors are more likely to choose a Big 4 auditor. The results also reveal that the effects of family and institutional ownership on auditor choice are partially mediated by independent directors.Practical implicationsThis study has important implications for GCC economies whose policymakers and regulators may need to address the conflict between controlling and non-controlling shareholders. It provides guidance for firms in the construction and implementation of their own corporate governance policies. Furthermore, the study findings may be useful to investors, assisting them in making better informed decisions and aids other interested parties in gaining a better understanding of the role played by ownership structure in the quality of auditors. Finally, the paper highlights the importance of the composition of the board of directors in increasing the likelihood of hiring a high-quality audit firm.Originality/valueThe main contribution of the present paper is to examine the board composition as a potential mediating variable between ownership structure and auditor choice. Moreover, it highlights the issue of improving governance mechanisms.

Geopolitical Risk and the Return Volatility of Islamic Stocks in Indonesia and Malaysia: A GARCH-MIDAS Approach

In this paper, the predictive value of geopolitical risk (GPR) for the return volatility of Islamic stocks in Indonesia and Malaysia is examined. GPR data, whether global or country-specific, heighten the return volatility of Islamic stocks in both countries, albeit with a greater impact on Indonesia. Additional analyses show improved out-of-sample forecast gains with the inclusion of GPR data in the predictive model of the return volatility of Islamic stocks.

The Effect of Global Risk Indicators on Developing Country Stock Exchanges

Global risk factors have great impacts on the economies and financial markets. It is observed that the stock markets of countries are affected by globalization especially in times of global crisis. To this end, CDS, VIX and Credit Ratings have started to be examined recently in order to decrease global risk factors. CDS, VIX, and Credit Ratings were determined as global risk indicators and these variables used as independent variables to detect the effect on BRICS-T (Brazil, Russia, India, China, South Africa and Turkey) stock market returns. Daily data set of these variables from 2008 to 2020 were gathered for each country. After preliminary analysis, ARDL model was determined as the best-fitted model for each data set. According to ARDL Bound test approach, except for China, it was detected long-term relationship between variables for the all-remaining (Brazil, Russia, India, South Africa, and Turkey) countries. It means that global risk indicators affect the returns of stock markets in emerging markets.

Systemic risk spillover across global and country stock markets during the COVID-19 pandemic

Uncovering the tail risk spillover among global financial markets helps provide a more comprehensive understanding of the information transmission in extreme market conditions such as the COVID-19 outbreak. In this paper, we examine systemic distress risk spillover between the global stock market and individual stock markets in the countries most affected by the COVID-19 pandemic. Using two important measures of tail dependence risk: conditional value at risk (CoVaR) and delta conditional VaR (ΔCoVaR), we apply the bivariate dynamic conditional correlation (DCC) conditional autoregressive heteroscedastic (GARCH) model. The empirical results reveal that bivariate systemic risk contagion between the global stock market and each individual stock market evolved during the sample period and intensified as COVID-19 spread worldwide. During the COVID-19 period, the developed markets in Europe and North America transmitted and received more marginal extreme risk to and from the entire global market than Asian stock markets. Further analysis involving the connectedness among the value at risk (VaR) series of the sampled stock market indices and the global stock index, shows a high degree of integration in the extreme downside risk of the stock market system, especially during the COVID-19 period. These findings offer practical implications for regulators, policymakers, and portfolio risk managers during the unprecedented uncertainty period provoked by the COVID-19 pandemic.

Empirical Analysis of Shanghai Stock Exchange Index Based on ARMIA Model and Neural Network Model

Stocks are an important part of the national economy. With the increase of liquidity in people's hands, more and more people choose to enter the stock market. In stock investment, accurate prediction of stock price index is not only of great significance to investors, but also of promoting the development of my country's stock market. It even has an important role in accelerating my country's economic development. The paper chose the ARIMA method based on linear technology for time series forecasting and the NN model that is good at mining the implicit nonlinear relationship in the data to compare the China Sea Securities Composite Index from January 21, 2020 to December 31, 2020. Empirical analysis of closing prices and short-term forecasts are made.

Relationships between above- and below-ground carbon stocks in mangrove forests facilitate better estimation of total mangrove blue carbon

BackgroundAlthough great efforts have been made to quantify mangrove carbon stocks, accurate estimations of below-ground carbon stocks remain unreliable. In this study, we examined the distribution patterns of mangrove carbon stocks in China and other countries using our own field survey data and datasets from published literature. Based on these data, we investigated the possible relationships between above-ground carbon stock (AGC) and below-ground carbon stock (BGC) for mangrove forests, aiming to provide a scientific basis for estimation of total mangrove carbon stocks.ResultsThe average above-ground carbon stock in each region was sizeable (ranging from 12.0 to 150.2 Mg/ha), but average below-ground carbon stock was dominant (ranging from 46.6 to 388.6 Mg/ha), accounting for 69–91% of total carbon stock at the sites studied in China. Significant positive relationships were found between above-ground and below-ground mangrove carbon stocks, with the best fitting equation as BGC = 1.58 * AGC + 81.06 (Mg/ha, R2 = 0.62, p < 0.01, n = 122) for China. Such linear relationships vary for mangrove forests of different types and locations, from different geographical regions in China to other countries worldwide.ConclusionThe positive relationship we found between above- and below-ground carbon stocks of mangrove forests in China and worldwide can facilitate more accurate assessments of mangrove blue carbon stocks at regional or global scales using modern techniques including remote sensing.

Transboundary marine protected areas

Countries exploiting transboundary natural resources face strong incentives to over-exploit. This basic economic insight has been validated empirically where numerous resources such as water, forests, game, and fisheries are found to be in worse condition than those completely contained in single nations. Attempts to solve this challenge through cross-country cooperation have been largely unsuccessful because competitive extraction is often more attractive than adhering to cooperative agreements. Focusing on the fishery, we explore the game-theoretic economics of an alternative to cooperative arrangements, called a transboundary marine protected area (TMPA), which straddles both countries’ waters. We derive the conditions under which it can improve profits and stock biomass, even in the presence of individually-rational non-cooperation across countries. Strikingly, we find that well-designed TMPAs have the potential to completely overcome non-cooperation across countries; this result is strongest for low growth rate species. A TMPA can earn higher harvest benefits for both countries, increase stocks in both countries, and in many cases, can even reproduce the fully cooperative outcome.