Stock Exchanges In Countries Research Articles

Impact of COVID-19 Announcements and Government Restrictions on Country Stock Exchanges: Developed and Emerging Markets

Bu çalışma, özellikle COVID-19 salgını sürecinde ülkelerin vaka ve ölüm sayısı duyurularının yatırımcıda oluşturduğu panik ve risk algısının borsalara nasıl yansıdığını araştırmaktadır. Ayrıca salgındaki bulaşma hızının düşürülmesi için ülkeler tarafından alınan tedbirlerin borsalar da oluşturduğu etki araştırılmıştır. Bu amaçla ülke borsaları MSCI endeksindeki gelişmiş ve gelişmekte olan 10’ar ülke belirlenmiştir. COVID-19 duyurusu olarak ölüm ve vaka sayıları kullanılırken, devlet kısıtlamaları için ise Oxford COVID-19 Devlet Müdahale İzleyicisi tarafından hesaplanan sıkılık endeksi kullanılmıştır. Veri setleri Refinitiv Datastream ve ourworldin data veri tabanlarından elde edilmiştir. Yapılan analiz sonuçlarında hem gelişmiş hem de gelişmekte olan ülkeler için kullanılan değişkenler arasında %1’de anlamlı uzun dönem bir ilişki tespit edilmiştir. Ayrıca hükümet kısıtlamalarından hem gelişmiş hem de gelişmekte olan ülke borsalarına doğru nedensellik ilişkisi tespit edilirken, vaka sayılarından bir ilişki tespit edilememiştir. Son olarak ise yapılan panel veri modeli analizi sonucunda gelişmekte olan ülke borsalarında sadece hükümet kısıtlamalarının negatif ve anlamlı etkisi tespit edilirken, gelişmiş ülkelerde hem hükümet kısıtlamalarının hem de COVID-19 duyurularının negatif ve anlamlı etkisi tespit edilmiştir.

Analysis of the relationship between the profitability of market portfolios and the profitability of shares of companies in the oil sector

Purpose: This article aims to elucidate whether the particularity of the high level of explanation of the relationship between the return on the market and the return on shares of companies in the oil sector in Brazil occurs similarly in other markets.
 Methodology: The oil companies considered were listed as the main ones by Forbes, Fortune and Exame magazines. Their shares and market movement were obtained from their respective host countries stock exchanges, and other information on institutional websites (e.g: OPEC - Organization of the Petroleum Exporting Countries). As theoretical support, CAPM and APT metrics were applied between from January 2, 2015, to March 31, 2021.
 Results: Considering the privileged position of the fuel sector for the movement of the level of economic activity of the countries, the result of this research confirmed that the particularity of the Brazilian scenario is observed in other countries with regard to the high level of explanation of the return of the superior market portfolio at 50%. The research observed that the Explanation Coefficient tends to capture in a more significant way the effects of crises that come from local economic contexts and impacts on the world economy, such as a possible reduction in the level of gross domestic product of countries such as the United States or China. As for the unexpected event, such as Covid-19, the model, in principle, did not present the same result, which could be observed in the quarterly analyses.
 Contributions of the Study: Research can help managers and investors, as by demonstrating similarities one can predict future events or assist in decision-making.

Is a critical mass of women always enough to improve firm performance? The importance of the institutional context

PurposeThis paper aims to present a comprehensive theoretical framework that seeks to explore the impact of cultural, legal and social factors within the external environment on the relationship between women on corporate boards and firm performance. By investigating these boundary conditions, the paper aims to shed light on how these pressures influence the aforementioned relationship.Design/methodology/approachTo build the sample of companies, the authors selected companies listed on the stock exchanges of countries that represent a diverse range of institutional contexts. These contexts encompass countries with individualistic cultures, collectivist cultures, environments with mandatory gender quotas, environments without gender quotas, contexts with substantial progress toward gender equality and contexts with limited progress in achieving gender equality. To test the hypotheses, the authors used linear regression analysis as a primary analytical approach. Furthermore, they used the propensity score matching technique to address potential issues of reverse causality and unobserved heterogeneity.FindingsThe findings indicate that the positive influence of a critical mass of women on corporate boards on firm performance is contingent upon the institutional context. Specifically, the authors observed that this relationship is strengthened in institutional contexts characterized by an individualistic culture, whereas it is not as pronounced in collectivist cultural contexts. Furthermore, this research provides compelling evidence that the presence of a critical mass of women on boards leads to enhanced firm performance in institutional settings where gender quotas are not binding, as opposed to settings where such quotas are enforced. Lastly, the results demonstrate that the presence of a critical mass of women on boards is associated with improved firm performance in institutional settings characterized by low progress in achieving gender equality. However, the authors did not observe the same effect in institutional contexts that have made significant strides toward gender equality.Originality/valueThis research offers a unique perspective by investigating the relationship between women’s presence on corporate boards and firm performance across different institutional contexts. In this investigation, the authors recognize that gender diversity on corporate boards is not a one-size-fits-all solution and that its effects can be shaped by the unique institutional contexts in which companies operate.

PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM STUDI PADA NEGARA ASEAN-5

The objective of this research is to analyze the impact of financial performance on stock prices in the ASEAN-5 countries. The financial ratios analyzed include, Liquidity Ratio, proxied by the Current Asset Ratio (CR), Profitability Ratios, proxied by Return on Assets (ROA) and Return on Equity (ROE), Solvency Ratio, proxied by the Debt to Equity Ratio (DER), Activity Ratio, proxied by the Total Asset Turnover (TATO). The data used in this research include financial data from companies listed on the stock exchanges of the ASEAN-5 countries during the period from 2020 to 2022. This study uses secondary data obtained from the websites of each country's stock exchange. The sample consists of 225 companies with a total of 675 data points. The data analysis method employed is panel data regression (Eviews 12). The results of the study indicate that the liquidity ratio (CR), solvency ratio (DER), and activity ratio (TATO) do not affect stock prices. This suggests that investors in the ASEAN-5 region do not primarily consider these three ratios in their investment decisions. Conversely, profitability ratios (ROA and ROE) are proven to affect stock prices. High profitability ratios increase investor confidence and interest, thereby driving up the company's stock price. These findings provide insights for company managers and investors in understanding the factors that influence stock prices in the ASEAN-5 capital markets.

Enforcement, corporate governance, and financial decisions

PurposeThis study aims to analyze the impact of corporate governance on firms’ external financing decisions in the Middle East and North Africa (MENA) region.Design/methodology/approachThe authors analyzed a unique set of panel data comprising 2,425 nonfinancial firms whose shares are traded on stock exchanges in countries in the MENA region. The authors fitted an ordinary least squares model to estimate the regression coefficients. The authors performed a sensitivity analysis using alternative measures of the critical variables and an endogeneity analysis using instrumental variable methods with plausible external instruments.FindingsThe results revealed that corporate governance characteristics of firms are strongly associated with their degree of leverage. They also showed that macrofinancial conditions, financial regulations, corporate governance enforcement and social conditions mitigate the impact of corporate governance on firms’ financing decisions.Research limitations/implicationsA larger sample size will further improve the results; however, this is difficult and depends on the extent to which increasing disclosure practices allow more corporate information to reach international databases.Practical implicationsThis study provides new evidence on the role of corporate governance on firms’ financing decisions and documents the essential mitigating role of institutions, alerting managers to consider them.Originality/valueThis study is a novel attempt. Based on information from different data sources, this study explored the predictive power of corporate governance, ownership structures and other firm-specific characteristics in explaining corporate leverage in MENA countries. Overall, the analysis provides new evidence of the association between corporate governance and capital structure in the MENA region, highlighting the critical role of institutions.

Inter-linkages between the stock exchanges of emerging economies: Evidence from BRICS

The economic liberalization took place in the year 1991, opened up wide range of opportunities to the industries, service providers as well as to the investors. Investors overcome the geographical boundaries to diversify their portfolio to foreign markets. So, it is highly important to understand the inter-linkages among the nations. The present study chosen the Brazil, Russia, India, China and South Africa (BRICS) consortium’s stock market indices to analyze the connectedness among them, by taking the daily closing price levels, from 1st of Feb 2015 to 31st of March 2021, applied descriptive statistics, Unit root test, Granger Causality Test and Johansen Co-integration tests are performed. The results unveil that, the data sample is stationary; there exists the inter-linkages among the BRICS nations stock markets. India’s stock market has major impacts on Brazil, China, South Africa as well as Russia, where as India will not receive major impacts from China, Russia and South Africa. Study concludes that diversifying the portfolio to foreign countries stock markets benefit the investors with increased returns and reduced risk. The study results helps the investors to diversify their portfolios into foreign stock exchanges to get stabilized returns understanding the relationship among emerging countries stock exchanges.

ENVIRONMENTAL FACTORS AFFECTING FINANCIAL PERFORMANCE DURING THE COVID-19 PANDEMIC IN ASEAN: SOCIAL DISCLOSURE AS MODERATING

This study discusses the factors of environmental performance, environmental disclosure, and corporate social disclosure that affect corporate financial performance. The current global warming is worrying enough that the country's leaders are committed to reducing the level of carbon emissions in each country. Environmental disclosures and social disclosures that must exist during the COVID-19 pandemic have not been implemented due to large-scale social restriction regulations from the government, so they cannot be disclosed. The research subject is a mining company in one of the largest ASEAN countries, namely Indonesia. Meanwhile, the object of this research is the Annual Report and Sustainability Report for the period 2018-2021 published on each ASEAN country's Stock Exchanges website. The study results show that Environmental Disclosure significantly influences the Financial Performance of mining companies listed on the IDX in 2018-2020

STUDY OF NEURAL NETWORKS FOR FORECASTING THE VALUE OF COMPANY SHARES IN AN UNSTABLE ECONOMY

These studies deal with analysis and selection of neural networks with various architectures and hybrid models, which include neural networks, to predict the market value of shares in the stock market of a country that is in the process of unstable development. Analysis and forecasting of such stock markets cannot be carried out using classical methods. The relevance of the research topic is due to the need to develop software systems that implement algorithmic support for predicting the market value of shares in Ukraine. The introduction of such software systems in the circuit of investment decisionmaking in companies that are interested in increasing the information transparency of the Ukrainian stock market will improve the forecasts of the market value of shares. This, in turn, will help improve the investment climate and ensure the growth of investment in the Ukrainian economy. The analysis of the results of existing studies on the use of neural networks and other methods of computational intelligence for modeling the behavior of stock market participants and market forecasting has been carried out. The article presents the results of a study for the using of neural networks with various architectures for predicting the market value of shares in the stock markets of Ukraine. Four shares of the Ukrainian Stock Exchange were chosen for forecasting: Centrenergo (CEEN); Ukrtelecom (UTLM); Kriukivs’kyi Vahonobudivnyi Zavod PAT (KVBZ); Raiffeisen Bank Aval (BAVL). The following models were chosen for the experimental study: long short-term memory LSTM; convolutional neural network CNN; a hybrid model combining two neural networks CNN and LSTM; a hybrid model consisting of a variational mode decomposition algorithm and a long-term memory neural network (VMD-LSTM); hybrid VMD-CNN-LSTM deep learning model based on variational mode (VMD) and two neural networks. Estimates of forecast quality based on various metrics were calculated. It is concluded that the use of the hybrid model VMD-CNN-LSTM gives the minimum error in predicting the market value of the shares of Ukrainian enterprises. It is also advisable to use the VMD-LSTM model to predict the stock exchanges of countries with an unstable economy.

A Cross Country Analysis of Financial Conditions and Earnings Management

This study aims to examine the effect of the company's financial condition on the earnings management behavior of companies in the Asian region. This study extends the existing research model by presenting a cross-country analysis of the relationship of financial conditions, which is specifically divided into three zones, namely financial distress, gray zone, and excellent financial condition, with corporate earnings management. The sample in this study consists of companies listed on stock exchanges of countries in Asia, with an observation period from 2009 to 2019. This study provides empirical evidence that supports the relationship between financial condition and company earnings management, which shows that earnings management is used as a tool by the management of companies that are under financial pressure to distort the quality of reported information, thereby creating a bias in the interpretation of company performance. This study proves that the characteristics of the company's financial condition, both in the safe zone, gray zone, and excellent zone, affect the pattern of company earnings management practices. This study measures earnings management using the discretionary accrual method so that it only captures earnings management practices that are part of the company's discretionary accrual management policy. Research can study earnings management further with the real earnings management approach to examine the effect of the company's financial condition on the distortion of earnings information through the company's actual activities.

Bahasa IndonesiaManajemen Laba dan Perilaku Investasi: Apakah Framing Effect Diperhitungkan?

This study aims to obtain empirical evidence on the effect of earnings management on company's investment decision making, as well as to see indications of the framing effect caused by earnings management on the company's investment behavior. The sample of this study includes all manufacturing companies listed on the stock exchanges of countries in Southeast Asian region with an observation period from 2009 to 2019. The results indicate a positive and significant effect of earnings management on management investment decisions. Meanwhile, the framing effect is believed to arise as a result of earnings management practices and also influences managers in viewing further as a consideration for making company investment decisions.
 Keywords: Earnings Management; Investment Decision; Framing Effect.

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.

Stock exchange efficiency and convergence: international evidence

This paper measures the efficiency and convergence of 37 stock exchanges in 35 countries over the period from 2006 to 2014, a period that encompasses a full business cycle of growth, recession and recovery. We combine a multi-stage data envelopment analysis with the window analysis approach to filter out the impact of economic environmental variables on stock exchange efficiency in the provision of trading services and track the efficiency changes over time. We show that economic growth, inflation and financial development are important drivers of efficiency. Lagging stock exchanges are catching up to the leading stock exchanges in terms of technical efficiency, pure technical efficiency and scale efficiency. Exchanges in developed countries converge faster than those in the emerging countries and the dispersion of the efficiency levels over the whole sample and the subsamples of developed vs emerging country stock exchanges diminished. Finally, stock exchanges in emerging countries are catching up to the stock exchanges in the developed countries and the dispersion of the efficiency levels between them also diminished. Overall, our findings indicate that integration has taken place in the stock exchange industry over the sample period.

THE IMPLICATIONS OF DEBT FINANCING ON WORKING CAPITAL MANAGEMENT EFFICIENCY: EVIDENCE FROM MENA EMERGING MARKETS

This proposed study aims to examine how debt financing affects the working capital management (WCM) efficiency of firms in eight selected MENA countries over the period 2016-2020. This study discusses different theories of debt financing which include the trade-off theory, the pecking order theory, the market timing theory, and the agency theory (i.e., the agency theory of debt, equity, and free cash flow). Particularly, the study addresses how short-term debt, long-term debt, and total debt influence WCM efficiency. We hypothesize that there are positive relationships between the short-term debt (measured by the current ratio), the long-term debt (measured by the long-term debt to total assets ratio), and the total debt (measured by the total debt to total assets ratio) toward WCM (measured by cash conversion cycle). Firm’s specific characteristics such as the firm type, the firm size, firm’s sales growth, and tangibility were used as control variables for WCM. To achieve the study objectives, a sample of 718 non-financial listed companies on stock exchanges in countries of Bahrain, Egypt, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and UAE will be used over the period 2016-2020. Secondary quantitative data will be collected from the annual financial statements of firms. The multiple regression model will be used to test the study hypotheses. This proposed paper originally contributes to the extant literature in several ways. First, there were limited studies of WCM in the MENA context and the current study provided a new insight that has not been investigated before in the MENA region. Thus, it bridges the gap in the literature. However, the majority of extant WCM literature emphasized the relationship between efficient WCM and firms profitability. Moreover, this paper contributes to developing efficient WCM practices and strategies that improve the financial performance of listed companies in the MENA region

The Impact of Informational Content of Intangible Assets on the Firm Performance: Evidence from MENA Countries Stock Exchanges

This paper attempts to investigate the impact of informational content of intangible assets on the firm performance. Informational content of intangible assets has been measured by “Current Site Rank” (RAN), “No. of Engagements on the Site” (ENG), “No. of Site Visitors” (VIS), “Change in No. of Site Visitors” (CIV), “Bounce Rate” (BOU) and “Change in Bounce Rate” (CIB), while firm performance has been measured by Price to Tangibles Ratio (PTR) and “Return on Assets” (ROA). This has been applied on companies listed in stock exchanges of 4 MENA countries (Egypt, KSA, Tunisia and UAE), on daily basis during the 4th quarter 2019 and 1st quarter 2020. Results indicate that Price to Tangibles Ratio” seem to be affected by each of “No. of Site Visitors”, “Change in No. of Site Visitors”, and “Change in Bounce Rate”. Besides, “Return on Assets” (ROA) may have been affected by each of “Current Site Rank”, “No. of Engagements on the Site” and “Bounce Rate”.

VISEGRÁDI-NÉGYEK ÉS ROMÁNIA TŐZSDEI VÁLLALATAINAK ÖSSZEHASONLÍTÓ PÉNZÜGYI ELEMZÉSE

A kutatás során 5 ország (Magyarország, Szlovákia, Lengyelország, Csehország és Románia) tőzsdén jegyzett vállalatainak elemzésére került sor 2014-2018 között. Az adatok a www.EMIS.com oldalról kerültek letöltésre, az sokaságból kikerültek a pénzintézetek, valamint azok a vállalatok, amelyeknek túl sok hiányzó adatai voltak, és azok, amelyek a vizsgált időszak teljes egészében nem voltak jegyezve az adott tőzsdén. A kutatás fő célja a vizsgált tőzsdék cégeinek a teljesítményének összehasonlítása volt. Elsőször a teljesítménymutatók, majd a piaci mutatók kerültek elemezésre. A variancia-analízis alkalmazásával a ROS, ROA, ROE mutatók esetében kerestem különbségeket az országok között, majd pedig kibővítettem néhány piaci mutatóval. Az eredmények alapján megállapítható, hogy a tőzsdén jegyzett vállalatok számának különbözőségéből, valamint a vállalatok méreteinek eltéréséből adódóan nagy szórások figyelhetők meg országon belül és országok között is. Nem jelenthető ki egyetlen legjobb ország sem, mert szinte mindegyik mutató tekintetében más-más ország teljesít jobban a vizsgált időszakban. Fontos megemlíteni, hogy az egységnyi tőkével elérhető nyereség Magyarországon és Csehországban a legmagasabb, tehát a befektetők itt valószínűleg nagyobb hozamra számíthatnak. A varianciaanalízis során kevés olyan mutató volt, amelynél több évben is volt szignifikáns eltérés az országok között.

The Price of Being Foreign: Stock Market Penalties Associated with Accounting Irregularities for U.S.‐Listed Foreign Firms

ABSTRACTWe examine the stock market consequences of disclosing accounting irregularities for U.S.‐listed foreign firms. After controlling for the severity of the irregularity and other firm characteristics, we find that foreign firms experience significantly more negative short‐window stock market reactions following irregularity announcements than do U.S. firms. Moreover, for a subsample of 64 irregularities of foreign firms that are listed on both a U.S. and home country stock exchange, we find evidence that restating firms' U.S. investors react more negatively to the same irregularity than their home country investors. This differential market reaction appears related to firm‐specific information risks that are greater for foreign firms than U.S. firms. Collectively, consistent with the reputational bonding hypothesis in prior literature, our results suggest that accounting irregularities cause U.S. investors to reassess the information risk associated with foreign firms.

РОЗВИТОК КОМЕРЦІЙНИХ БАНКІВ УЗБЕКИСТАНУ В УМОВАХ ЛІБЕРАЛІЗАЦІЇ ВАЛЮТНО-КРЕДИТНИХ ВІДНОСИН

The liberalization of monetary relations has identified the problem of maintaining the level of economic standards for the banking sector of the Republic of Uzbekistan, in accordance with the requirements of the Basel Committee on Banking Supervision (Basel-3) and the Central Bank of the Republic of Uzbekistan. The aim of the research is to identify ways of stable development of commercial banks in Uzbekistan in the conditions of liberalization of monetary relations. The object of research is the process of stable development of commercial banks in Uzbekistan, as well as ways to improve the efficiency of the banking system as a whole. Research methods – logical, comparative, analytical, scientific and methodological. The hypothesis of the research is that ways to improve the effectiveness of public administration depend on the qualifications of managerial personnel and feedback from the local population. Statement of basic materials. The article considers the priority tasks of the banking sector of the republic, aimed at maintaining stability and stable development. As a priority measure to increase the stability of commercial banks in Uzbekistan, we propose intensifying efforts to attract foreign direct investment in the banking sector of the republic, including through an initial public offer (IPO) in the domestic market, or by placing depositary receipts of shares of commercial banks of the republic in foreign countries stock exchanges. Originality and practical significance of the research. The choice of a model of government in the economy is inevitably associated with geopolitical priorities and ideas about the country's place in the modern world. This means that governance institutions are also influenced by the assessment of governance effectiveness and political factors, which in turn are divided into domestic political ones – this is the support of the idea of state independence by the population. The findings of the research. All proposed measures in the banking system should ultimately increase the volume of attracted investments and ensure the implementation of large investment projects, which are a good example of the successful implementation of state policy on the rational use of the richest raw material base and industrial capacities, ensuring sustainable economic growth, and organizing production with high added value, enhance export potential.

The Impact of Informational Content of Intangible Assets on the Firm Performance: Evidence from MENA Countries Stock Exchanges

The Impact of Informational Content of Intangible Assets on the Firm Performance: Evidence from MENA Countries Stock Exchanges

Volatility spillover impact of world oil prices on leading Asian energy exporting and importing economies’ stock returns

Today Asia accounts for about 40% of the world oil trade and most of the trade is transpired within the region. This study presents an investigation of the volatility spillovers among leading Asian oil exporting countries and oil importing countries’ stock exchanges and crude oil returns. The model selection from multivariant GARCH models include BEKK-GARCH, DCC-GARCH, ABEKK-GARCH and ADCC-GARCH estimation techniques which are applied using daily data from 1st September 2009 to August 31st, 2018 for the three oil exporting countries (Saudi Arabia, United Arab Emirates, Iraq) and four oil importing countries (China, Japan, India, South Korea) stock exchanges with spot crude oil. Further, these estimation results are used to analyze the optimal portfolio weights for oil-stock portfolios. The bidirectional spillover is accepted for the correlation of two oil exporting countries (Saudi Arabia, Iraq) and South Korean stock return with oil returns. the Overall the results of all the oil exporting and oil importing countries show a different level of significant correlation with oil but the influence of oil shock are more pronounced on oil exporting countries. We also present a graphical picture of the stock correlation with oil by employing DCC-GARCH model that shows great shock and volatility correlation in the period of the oil crisis of 2014–2016. According to optimal portfolio weights and hedge ratios, the oil assets are a useful instrument to minimize the portfolio risk in studied markets. The investors, however, should choose more stocks than oil assets to form an optimal portfolio in case of oil importing countries and equal ratio for the oil exporting countries.

Keterkaitan Antar Bursa Efek Dunia (Studi Kasus pada Bursa Efek Negara Maju dan Negara Berkembang)

This research analyzes the correlation between stock markets worldwide. Developing countries stock exchanges are represented by China and Indonesia, whereas developed countries stock exchanges are represented by Germany, Japan, Australia, Singapore, and the United States. Using stock’s daily close prices as data, then assessed with Vector Error Correction Model and Granger Causality. Analyzed indexes are Shanghai Stock Exchange Composite (SHCOMP), Indeks Harga Saham Gabungan (IHSG), Dow Jones Industrial Average (DJIA), Nikkei225 (NKY), Deutscher Aktien Index (DAX), All Ordinaries Index (AOI), and Strait Times Index (STI). Stock data grouped into two periods, the first period is the Asian Financial Crisis in 1 January 1998-31 December 2003, while second period is the Subprime Mortgage crisis in 1 January 2008-31 December 2013. Research results show correlations between analyzed stock indexes in both long run and short run relationship in the firstperiod as well asthe second period, however the correlation between Singapore’s and Indonesia’s stock exchange in second period is unproven.