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BANKRUPTCY RISK AND SHARE PRICES: A CASE STUDY ON ENERGY COMPANIES IN KUWAIT

<p>This study aims to investigate how investors' perceptions of risk impact the stock prices of energy companies listed on the Kuwait Stock Exchange (KSE) from 2016 to 2023. Investors' belief in the future financial stability of the companies they invest in influences their risk perception. Therefore, if investors hold pessimistic views, they will decrease their investment in these companies, causing share prices to drop, and vice versa. The Zmijewski x-score model is utilized in this study as a measure of risk to assess the financial stability of Kuwaiti energy companies and its impact on their stock prices. The study employs ordinary least square regression (OLS) to analyze the correlation between the x-score and share prices. Results from this research indicated that there was no statistically significant relation between Zmijewski's x-score and stock price and that investors look at other factors when choosing their investments. This is evident because the company with the greatest bankruptcy risk in the following two years also had the second-highest share price.</p><p> </p><p><strong>JEL: </strong>G1, G4, M21</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0699/a.php" alt="Hit counter" /></p>

International operations and international influences – Investing in UK firms

We provide an alternative perspective on the benefits of investing in Multinational Companies (MNCs) using a unique hand-collected dataset on the location of UK firm's sales and subsidiaries from 1998 to 2015. We find that investors can gain diversification benefits from investing in MNCs, but not necessarily firms with the greatest global reach. We also show that firm's returns tend not to be influenced by the geographical regions where they report sales and subsidiaries. The results suggest a new category of firms that may be beneficial for diversification - firms that are significantly influenced by the stock markets of a geographical region but do not report sales or subsidiaries in that region. This implies that investors should analyse the geographical regions that influence firm returns rather than the location of their sales and subsidiaries. Intuitively, these should be the same, but our results show a difference between the geographical location of a firm's sales and subsidiaries, and the regions that influence the firm returns. We recommend that investors look beyond the location of MNC activities and investigate the geographical regions that influence firms' returns when creating portfolios.

STUDY OF RISK AND RETURN OF MUTUAL FUNDS

There are many avenues in financial market. An Investor can invest in Bank deposit, corporate debenture and bonds which has law risk with low return. He may also Investor in stock of company which has high risk with hight return. Investors look for safer investment avenues and want to maximize their returns in according to their risk. Whereas people also tries to invest money as early as possible so that the money will grow accordingly in his lifetime. Choose a good investing option is very critical because a balance is required to be maintained between the risks and returns involved in investment. Return is inspiring force and principal reward in the investment process. One of the essential, reason because ofwhich one needs to invest fairly is to meet the cost of inflation. Inflation is the rate at which the cost of living increases at that time. A mutual fund is an expertly overseen company of collective investments that swimming pools money from numerous buyers and puts it in stocks, bonds, momentary money market instruments, as nicely as distinct securities. Mutual money is emerging as helpful instrument for a large scope of speculators, from people looking to put some thing aside for retirement to subtle socialites concentrated on defending their belongings and businesspeople to make wealth. Mutual Fund is a trust that pools the reserve funds of various buyers who share a typical financial objective. Anyone with an investible overflow of as little as two or three thousand rupees can put resources into mutual fund devices as indicated by means of their expressed objective and strategy. Mutual Fund Company pools money from a gathering of individuals with normal hypothesis targets to buy securities, for example, stocks, bonds, money market instruments, a mixture of these instruments, or significantly unique belongings so as to acquire the reward of enhancement and expertly oversaw container of protections at a reasonably ease. In a mutual fund, the fund manager, who is likewise excellent as the portfolio manager, trades the funds underlying securities, acknowledging capital positive factors or losses, and gathers the dividend or hobby income. The income are passed alongside to the investors. The charge of a share of the mutual fund, acknowledged as the net asset value (NAV), which is determined on day through day base, in mild of the absolute estimation of the mutual fund divided by the extent of high-quality shares presently issued.

How Much Is an Idea Worth?

The value of an idea in the world of investing is often overestimated, as investors are more interested in the team’s ability to turn the idea into a product or service that meets customers’ needs and wants. While an idea is the starting point, it holds no value until it faces market realities, competitors, regulations, and other factors that shape its worth. Investors look for startups with a robust execution plan, a resilient team, scalability, adaptability, early validation, and a compelling pitch. Scientific results also hold value as a starting point for potential therapies or products, but their ultimate worth depends on successful translation. The key lesson for startups and investors alike is to not overestimate the value of raw ideas or scientific results without considering the execution process’s challenges and requirements.

ESG scores and stock returns during COVID-19: an empirical analysis of an emerging market

PurposeThe COVID-19 pandemic resulted in a dramatic downturn in the global stock markets. Investors look for safe stocks that can provide better risk-adjusted returns. Stocks with higher Environmental, Social, and Governance (ESG) scores can be good choices for investors. This study focuses on this argument by examining the relationship between ESG indicators and stock returns while considering financial and macroeconomic variables.Design/methodology/approachIn this study, 39 non-financial firms listed in Nifty-50, for which data is available, have been included. Panel data from 2018 to 2021 is collected to examine this relationship in the presence of COVID-19. Additionally, the panel regression method is used.FindingsThe empirical findings indicate a positive relationship between ESG scores and stock returns. This relationship holds even when the control variables like Return on Assets (ROA), Gross Domestic Product (GDP), Return on Equity (ROE), age, size, leverage of the firm, inflation, and crisis period are used in the model.Originality/valueThis study contributes by examining the linkage between ESG indicators and stock return while controlling the impact of the financial and macroeconomic variables in Indian markets, which has not been undertaken so far. Moreover, this is the first study to use the ESG score data of S&P Global, which gives more weight to the material factors of a firm.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2023-0819.

PENGARUH RETURN ON ASSET, EARNING PER SHARE, DAN CURRENT RATIO TERHADAP HARGA SAHAM

This research aims to determine and analyze the effect of return in assets, earnings per share and current ratio on stock prices in manufacturing industries that have been listed on the Indonesia Stock Exchange in the period 2015 to 2019. The sample was selected by purposive sampling method after being calculated by the slofin method. The data that has been obtained by researchers and valid to be studied are 40 companies. The researcher uses data processing techniques using regression analysis assisted by the IBM SPSS version 23 program. The results obtained by this study indicate that return on assets and earnings per share have a significant effect on stock prices and the current ratio has no significant effect on stock prices. However, when it is examined again that return on assets, earnings per share and current ratio have a positive influence on stock prices. This makes investors look more at the return on assets and earnings per share which can increase stock prices than the current ratio. For further research, moderating variables can be added so that the results will be more varied than others.

Determinants of Institutional Ownership in the MENA Region

This study explores the main determinants of institutional ownership in the MENA region. Using a large sample of 262 listed companies across MENA countries, this study focuses on company and country characteristics that might explain institutional behavior. We attempt to answer the following questions: First, what are the main categories of institutional investors operating in MENA countries? Secondly, what factors drive institutional ownership? Results reveal a weak presence of institutional investors in the MENA region. Unlike foreign and passive investors, domestic and active institutional investors dominate the companies’ ownership. Such findings raise serious issues about how to attract foreign institutional investors. Results also suggest that value stocks appeal to institutional investors, whatever their origin (foreign or domestic) and kind (active or passive). Institutional investors look for large, profitable, and liquid companies that pay high dividends. They prefer investing in highly indebted companies as they consider debt an efficient mechanism to mitigate agency problems. Corporate governance and information disclosure are also crucial determinants of institutional ownership. However, foreign-domestic and active-passive institutional investors have different investment preferences. Our study would contribute to a better understanding of ownership endogeneity within an emerging context. Results would help professionals, managers, and policymakers to adopt appropriate reforms to offer an appealing business climate and attract a large base of institutional investors, not only foreign and active investors.

Financialization and Dynamics of Currency Futures Market during COVID-19: Evidence from India

This study examines inter-relationship and impact of COVID-19 on Indian currency and equity futures markets during the period of financial crisis. In such period, investors look for alternative asset classes to hedge against risk as observed during Global Financial Crisis. This study examines whether same phenomenon was observed after COVID-19 in India considering currency futures as an alternate asset class. For this purpose daily exchange rate of Indian Rupee with British Pound Sterling, Japanese Yen, Euro and United States Dollar and for equity futures, near-month NIFTY 50 futures contracts are used. After examining stationarity of data, Co integration test, Granger causality and Bi-variate correlation is applied. ARCH and DCC-GARCH model is employed to allow for heteroscedasticity and time variation in correlation. It is observed that YEN, JPY and USD display significantly negative correlation with Nifty futures. Currency futures is causing Nifty futures during COVID-19 period and leads Nifty futures by one day. However, it is other way around during pre-COVID-19 period. Long-run co-integration is not evident. ARCH effect is present in both time series and except for insignificant short-run shock persistence during COVID-19 period, there exists time varying correlation between currency returns and Nifty.

Return and Risk of Stock Investment in Finance Sector

The goal of this study is to offer investors with information to aid in deciding how to allocate their investment dollars. Investment risk results from the discrepancy between the projected return and the actual return; unfavorable risk is brought on by uncertain situations. If macroeconomic conditions are favorable, inflation is under control, exchange rates improve, and interest rates are low, investors will feel secure. Investors look for a return on their investments, either in the form of dividends or capital gains. Investors' behavior toward risk have an impact on investment decisions that are based on risk and return. The five economic circumstances studied in this study are as follows: (1) recession; (2) moderate recession; (3) normal; (4) good; and (5) excellent. The result of this study is investment at BNGA (PT CIMB NIAGA, Tbk) and BBCA (PT BANK CENTRAL ASIA, Tbk) as a high return and low risk. These stocks are recommended in any economic situation. If an investor fits the suggested risk-taker profile, they should consider investing in BNGA; otherwise, they should consider BBCA.

Analisis Rasio Keuangan Dalam Menilai Kinerja Keuangan Pada Industri Kosmetik Terdaftar BEI Periode 2022

The development of the beauty industry increases every year. Even during the Covid-19 pandemic, this industry remained stable in facing the crisis. This condition certainly makes many investors look to invest their capital in this industry. The beauty industry listed on the Indonesian Stock Exchange (BEI) is PT. Mustika Ratu Tbk, PT. Martina Berto Tbk and PT. Unilever Indonesia Tbk. In order to help investors assess company performance, it is necessary to carry out financial ratio analysis. Financial ratio analysis in this study is liquidity analysis, asset management analysis, debt management analysis, profitability analysis and market value analysis. This study is qualitative in nature with data analysis using financial ratio analysis. The results of this study provide the conclusion that if the analysis of the cosmetics industry in 2022 uses industry averages according to Brigham Houston, there are several components that are above standard, such as profit margin and ROA owned by PT. Mustika Ratu Tbk and PT. Unilever Indonesia Tbk above standard. PT fixed asset turnover. Muatika Ratu Tbk which is above standard. If analyzed through comparisons between companies that are still in the same industry, the company PT. Unilever Indonesia Tbk has performed quite well in generating company profitability. Proven by the fairly large profit margin and ROA ratio.
 Keywords: Liquidity, Asset management, Debt management, Profitability, Market value

PENGARUH RISIKO KEUANGAN DAN PERTUMBUHAN PENJUALAN TERHADAP PROFITABILITAS (SEBAGAI VARIABLE INTERVENING) DAN NILAI PERUSAHAAN FARMASI PERIODE 2020 -2022

This study aims to determine the Effect of Financial Risk, Sales Growth on Profitability and Value of Pharmaceutical Companies of pharmaceutical companies in 2020 – 2022. The type of research conducted in this study is quantitative which aims to determine the relationship between independent and bound variables, in this study it is carried out to determine the effect of financial risk, sales growth on profitability as an intervening variable and company value. The source of data used in this study is secondary data in the form of financial statements of pharmaceutical companies listed on the Indonesia Stock Exchange from 2020 to 2022. To determine the effect of DAR and sales growth on profitability and company value using pricebook value, Debt to Asset Ratio, Sales Growth, and Return on Asset ratio. The results showed that DAR had a significant negative effect on profitability. This means that the smaller the DAR value, the greater the level of profitability achieved. Sales growth has no insignificant effect on profitability. That is, the level of sales growth is not the cause of the rise or fall of company profitability. The effect of DAR, Sales Growth and ROA on Company Value. DAR has no effect and is not significant on the Value of the Company. That is, investors look more at the prospects of the company than at the Financial Risk in this case the value of the Debt to Asset Ratio. Sales Growth has a positive and significant effect on Company Value.

DO COMPANY PRODUCTIVITY, PRICE-EARNINGS RATIO, AND EFFECTIVE TAX RATE AFFECT FIRM VALUE?

Investors look for companies with growing firm value and are eager to know the factors that affect it. Other research that has been conducted previously relating to factors that influence company value shows different results. This is the motivation for researchers to conduct research which is a development of previous research. The purpose of this study is to obtain empirical evidence about the effect of firm size, company productivity, firm age, price earning ratio, profitability, leverage, effective tax rates, and audit quality on firm value. The sample used in this research is manufacturing companies listed on the Indonesia Stock Exchange consistently from 2016 until 2018. The sample selection method used was purposive sampling, there were 75 companies met the criteria, resulting in 225 data being taken as samples. Research data were analyzed by doing hypothesis tests using multiple regression methods to determine the model of research. The results of this study show that firm size, profitability, and leverage affect firm value. company productivity, firm age, price earning ratio, effective tax rates, and audit quality do not affect the value of the firm.

Do Banks in Saudi Arabia Manage Earning Using Discretionary Components?

This study aimed to examine whether banks in Saudi Arabia used discretionary components for loan and investment portfolios in managing earnings as this study was conducted on all banks registered on Saudi Arabia Stock Market (TASI) for the period 2013-2022. The study also aimed to determine the impact of the discretionary component of the allocations for loan losses on both profitability metrics and market metrics. To achieve objectives of the study, two metrics were used as proxies for managing earnings. The first metric used both the discretionary components of the allocations for loan losses and the realized gains and losses of investment portfolio. The second metric used only the discretionary component of the allocations for loan losses of the credit portfolio. The study relied on the quantitative approach as the study used regression models and correlations to test the study’s hypotheses. The results of the first metric of earnings management indicated that the determinants of earnings management were financial leverage, total assets, net operating profit, GDP growth rate, while the capital adequacy ratio was not one of the determinants of earnings management. The results of the second metric of earnings management indicated that the discretionary component of the allocations for loan losses had positive impacts on return on assets, return on equity, earnings per share, share price and annual share returns. That is, investors realized that the allocations for loan losses contained a discretionary component that will be converted into future earnings and cash flows, and investors look at the discretionary component positively. According to the signal theory, Saudi banks used the allocations for loan losses to transmit positive signals about the levels of the profits in the future. The results of this study have significant implications on the decisions of investors, supervisory authorities, bank managers and external auditors.

Dividend policies and stock volatility-empirical evidence from Middle Eastern stock markets

PurposeThe study aims to explore the relation between dividend policy of any company and its stock volatility.Design/methodology/approachCompanies listed on six GCC stock markets are used in the analysis and the data ranges from 2006 to 2020. Fixed effect and random effect panel data analysis is used to explore the association between stock volatility and the dividend policies.FindingsA significant negative relation is observed between dividend payout and stock volatility. Also, significant negative relation between stock volatility and equity is found, whereas insignificant positive relation is observed between asset growth and stock volatility.Research limitations/implicationsThe data of all listed companies on six GCC markets were not available.Practical implicationsThe question of raising dividend or maintaining at the current level is of utmost importance for the managers of any company before making any investment decisions. Also, the investors look at the dividend announcements as a sort of signal about the future prospect of the company. A stable or fluctuating dividends may be preferred by the investors that ultimately changes the stock price of any company.Social implicationsThe relationship between dividend policy and the volatility of stock price is explored for emerging GCC markets which is the major significance of this paper which will have many social impacts on various stakeholders of any company including investors, regulators and employees, etc.Originality/valueTo the best of the authors’ knowledge, no study for GCC markets is done to establish a relation between stock volatility and the dividend policies which is needed by the academicians to further explore the behavior of these markets.

Pengaruh Likuditas Dan Ukuran Perusahaan Terhadap Return Saham Perusahaan Food And Beverage Yang Terdaftar di Bursa Efek Indonesia Tahun 2020-2022

The positive development of companies in the food and beverage manufacturing sub-sector is a good thing to attract investors to invest. Generally, investors look at financial performance before making a decision. The purpose of this study is to examine the impact of liquidity and company size on stock returns of food and beverage companies listed on IDX during 2020-2022. The research method used in this study is the quantitative method of multiple regression analysis. The selected population is food and beverage companies listed on IDX for 2020-2022, while using purposeful sampling to determine the sample, the criteria is the industry of food and beverage companies listed on the Indonesian Stock Exchange and audited financial reports 2020-2022 . The main source of data for this study is secondary data collected from financial reports. Using linear regression analysis, it is demonstrated that liquidity and company size have no effect on the stock returns of IDX-listed food and beverage companies in 2020-2022. Researchers advise investors to look for other metrics that can describe stock returns.

Carbon Emissions Announcements and Market Returns

The paper investigates the impact of carbon emissions on stock price returns of European listed firms. This relationship is assessed across all three emissions scopes, as well as using expectations to detect if future emissions impact contemporary returns. Our findings show that firms with higher expected future emissions deliver lower contemporary returns after controlling for market capitalization, profit and other known return predictors. This result is statistically significant in the post Paris Agreement period for two- to three-year expectations of Scope 2 emissions. However, there is marginal to no significant negative relationship between current emissions and current returns. Overall, the results suggest that more environment-minded investors look further ahead and would expect lower returns from a polluting firm compared to a firm with no carbon emissions after the Paris Agreement.

Sustainability and Climate Risk Data

As economic actors face increasing pressure to be socially responsible and environmentally conscious, investors look beyond traditional financial metrics and seek data to support their decision-making. Measuring and reporting sustainability and climate risks is a relatively new discipline with several interrelations to economic, financial, risk management, and other cognitive study areas such as climate sciences, and have come a long way in the last couple of years. We are in the middle of the evolutionary process, as data availability and coverage are much better than a decade ago. However, there is still a lot to do until the new metrics and indicators are fully embedded in risk management frameworks and decision-making processes, similar to traditional risk measures. In our essay, we will explore the role of third-party data vendors for sustainability, ESG, and climate risk-related information, their importance in the modern investing world, and review the major challenges. We give an insight into the evolution of the market of data vendors and also the regulatory landscape. Finally, we explore the unique roles of central banks and their challenges in implementing actions in sustainability.

Comparison of Different Machine Learning Prediction about Stock based on Multi-Factor Input-Taking the Nasdaq Index as an Example

Stock investment has always been widely concerned, and the prediction of future stock trends is what many investors look forward to. There are numerous techniques that can be used to predict stocks as machine learning advances. The commonly used method is support vector machine, random forest, linear regression, etc. Recurrent neural networks, multi-layer perceptron, single-layer LSTM networks, naive Bayes networks, convolutional neural networks, back propagation networks, etc. are examples of deep learning techniques. In historical studies, researchers have tended to predict directly from stock prices or used time series as an independent variable to build a forecasting model for stock prices. In this study, we propose input training parameters based on stock indicators and build a sliding window of it to predict the future price. Based on LSTM, ANN, support vector machine regression, Linear Regression to make predictions on price, and analyze the differences between them. Our research is based on the Nasdaq and the evaluation values show that the neural network approach is effective for stock return forecasting.

The Role of Corporate Governance on Firm Performance of Public Listed Companies in Malaysia

There has always been an increasing and renewed interest in the business world for corporate governance (CG) to improve Firm Performance (FP) due to global corporate scandals and the continuous downfall of Public Listed Companies (PLCs). The PLC investors look forward to diversifying their investments and maximising their returns as a result of good FP. One of the major investor concerns is the firm's CG, which acts as a tool to minimize their investment risk by monitoring management's decision-making that affects FP. Therefore, this research paper aims to investigate the role of CG on FP of PLCs in Malaysia, particularly on the Audit Committee (AC) and Integrity Committee (IC), which are established to assist the Board of Directors (BOD) in the monitoring of executive management. This study will use the cross-sectional design and organization level as the unit of analysis. Data will be collected from the annual report of 300 PLCs from June ‘2020 to December 2020. The judgmental sampling technique has been adopted in this study. The data will be analysis using Smart PLS. This study can contribute to the literature by filling up gaps in CG literature, especially on IC, which is less researched. This study can enhance the understanding of scholars on CG practices, particularly on BOD's subcommittee. The findings of this study are useful for PLCs, Bursa Malaysia Securities Berhad (Bursa Malaysia), Securities Commission Malaysia (SC) and Malaysian Anti-Corruption Commission (MACC) to understand further the impact of CG on FP, particularly the BOD's subcommittee to enhance and improve on regulatory and legal requirements.

A Market Analysis of Potential Investment in Green Bonds and it’s Contribution to Sustainable Development

Since 1880, there has been an average annual increase in the ambient temperature of about 0.8° Celsius, which is what causes global warming. As a result of continued climate change, ocean water has become more acidic, and rising carbon levels have encouraged the development of green bonds. These bonds designed to benefit the environment. As people's understanding of sustainable development has expanded. The amount of money received through the selling of Programs that support the use of renewable energy sources, the growth of agriculture, fisheries, and poultry, as well as clean transportation, afforestation, the preservation of biodiversity, moderate fossil fuel consumption, and the slowed rate of global warming are funded with the help of green bonds. Studies show that some investors look for green bonds that give a fixed income as well as environmental protection and decision-making that takes into account positive societal effects or environmental benefits. The economy must embrace and promote the growing trend of green bonds. The principal of green bonds is paid out regularly to investors, and interest is paid when the bond matures. Bonds issued by corporations’ bear dividends. The World Bank's support for green bonds, the impact Indian green bonds have on Indian investors, and other topics are covered in this essay. An analysis of SBI's 2019 "green bonds" is provided in this essay. This essay makes an effort to give a comprehensive overview of the benefits and potential of green investments in order to assist sustainable development. There is a brief list of projects that were started using green bonds. This study includes a number of illustrations to support the global and Indian green bond issues. The issuance volumes for 2021, 2020, and 2019 are shown on this page. It has been suggested how the money raised by green bonds in 2021, 2020, and 2019 will be used for various purposes