Market Listing Research Articles

Portfolio Prediction using Deep Learning

This research investigates the use of Long Short-Term Memory (LSTM) networks for predicting stock prices and optimizing investment portfolios. Utilizing a dataset comprising the top 30 U.S. companies by market capitalization from 2009-12-31 to 2021-12-31, excluding AbbVie, Meta, and Tesla due to their later market listings, we demonstrate that LSTM models outperform conventional Recurrent Neural Networks (RNN) and Convolutional Neural Networks (CNN) in generating accuracy and portfolio returns. By efficiently capturing long-term dependencies within stock price data, LSTMs offer more reliable predictions, which are crucial for optimizing investment portfolios. Our methodology involves data collection and preprocessing, model building using LSTM architecture, and evaluating performance using metrics such as mean absolute error (MAE), mean squared error (MSE), root mean squared error (RMSE), mean absolute percentage error (MAPE), and mean percentage error (MPE). The results indicate that LSTM models not only enhance prediction accuracy but also improve portfolio returns compared to equally weighted and market capitalization weighted portfolios. This research provides significant insights into the benefits of using advanced deep learning techniques like LSTMs for financial market predictions and portfolio management.

Socio-Economic Determinants of the Value Attributed to Human Capital in the Labour Market from the Employee’s Perspective

The aim of this study is to analyse the variables related to knowledge (Talent Management and Training) as a source of human capital in the companies listed in the ranking of the most attractive organisations within the Spanish labour market, published annually by the journal Actualidad Económica (period 2016–2022). We seek to determine the socio-economic variables impacting this assessment, while also exploring the sustainability of the companies in the ranking. Ten hypotheses are thus examined by descriptive statistics, ANOVA, and multiple linear regression models. The results show a significant relationship between permanence, nationality, professional–scientific–technical sector, size, stock market listing, and both variables representative of knowledge in the ranked companies. Focusing on Talent Management, it is noted that permanence in the ranking (>4 years), Anglo-Saxon nationality, being active in the professional, scientific, and technical sector, and being listed on the stock market all play a part. However, Training differs in that size is a factor that positively influences valuation, whereas the international area is irrelevant. Our findings are a key contribution, as there are no previous applied studies that correlate knowledge in the business environment, the valuation of organisations from the employee’s perspective, and several socio-economic variables.

The short-termism trap: Catering to informed investors with limited horizons

Does the stock market exert short-term pressure on listed firms, do they respond, and is this response value reducing? We show that limited investor horizons indeed have those consequences, as follows. First, informative stock prices increase firm value; in our model, they reduce the agency cost of incentivizing managers. Second, short project maturity improves stock price informativeness by catering to informed investors with short horizons. Third, since informed trading capital is a scarce resource, attracting informed investors cannot increase an individual firm’s price informativeness in equilibrium: it simply destroys shareholder value. This “short-termism trap” can potentially destroy up to 100% of the benefits of stock market listing.

Association of Drugs for Sale on the Internet and Official Health Indicators: Darknet Parsing and Correlational Study.

Studying illicit drug circulation and its effects on population health is complicated due to the criminalization of trade and consumption. Illicit drug markets have evolved with IT, moving digital to the "darknet." Previous research has analyzed darknet market listings and customer reviews. Research tools include public health surveys and medical reports but lack neutral data on drugs' spread and impact. This study fills this gap with an analysis of the volume of drugs traded on the darknet market. We aimed to use the dark web data and officially published indicators to identify the most vulnerable regions of Russia and the correlations between the pairs of variables to measure how illicit drug trade can affect population well-being. We web-parsed the Hydra darknet drug marketplace using Python code. The dataset encompassed 3045 individual sellers marketing 6721 unique products via 58,563 distinct postings, each representing specific quantities sold in different Russian regions during 2019. In the second stage, we collected 31 variables from official sources to compare officially collected data with darknet data about amounts and types of selling drugs in every 85 regions of Russia. The health-related data were obtained from official published sources-statistical yearbooks. Maps, diagrams, correlation matrixes, and applied observational statistical methods were used. In 2019, a minimum of 124 kilograms of drugs circulated daily in small batches on the Russian darknet. Cannabis dominated the market, being 10 times more prevalent than opiates, and cannabis products' higher availability in the region is correlated with a lower incidence of opiate overdoses. The "grams of opiates in the region" variable is significantly correlated with drug overdose deaths (r=.41; P=.003), HIV-positive cases due to drug use (r=.51; P=.002), and drug court convictions in Russia (r=.39; P=.004). The study identified significant correlations between opiate sales on the darknet and higher rates of HIV among injection drug users (r=.47; P=.003). Conversely, regions with higher cannabis sales exhibited significant negative correlations with indicators of harmful drug use (r=-.52; P=.002) and its prevalence (r=-.49; P=.001). These findings suggest regional variations in drug sales on the darknet may be associated with differing public health outcomes. These indicators accurately reflect regional drug issues, though some official statistics may be incomplete or biased. Our findings point to varying levels of risk associated with different types of drugs sold on the darknet, but further research is needed to explore these relationships in greater depth. The study's findings highlight the importance of considering regional variations in darknet drug sales when developing public health strategies. The significant correlations between drug sales data and public health indicators suggest that region-specific interventions could be more effective in addressing the diverse challenges posed by illicit drug use.

IPO underpricing and overpricing and long-term firm performance in the Netherlands, United Kingdom, France, Sweden, and Italy: learning from three Dutch IPOs

Aim: This research contributes to the study of the relationship between initial public offering (IPO) under- and overpricing and long-term firm performance as measured by net income. Research methods: Using ordinary least-squares regressions, an international sample of 444 IPOs from the United Kingdom, Sweden, France, Italy, and the Netherlands for the period 2013–2017 is analysed. The data was extracted from the Eikon Refinitiv database. Further, an in-depth analysis of three Dutch IPOs by six interviews with five (former) management members and one investment banker is conducted. Conclusions: The results show that the more profitable a firm is in the long run, the likelier positive initial stock returns move towards zero after the first trading day. The case studies support these findings and the concept of asymmetric information between market participants can offer a partial explanation. Additionally, as firms operating in the industrial and healthcare sector grow larger, the offer price tends to be closer to the overall market demand. Nonetheless, no significant relationship is found between initial stock return and net profitability for other industries. While the country analysis also displays no significant relationship, underpricing is more prevalent in the United Kingdom than in the other sample countries. Originality: This article combines a full-fledged quantitative study with a full-fledged qualitative study on one of the most perilous corporate finance milestones, that is, the complex transformation from a private to a public company through a stock market listing. Limitations: The sample composition skews towards underpriced IPOs. Also, although the notion of reverse causality is discussed based on the views of interviewees, no quantitative evidence is provided.

The Impact of Stock Market Listing on the Financial Performance of Companies within the Rwanda Stock Exchange (RSE)

The study, titled Stock Market Listing and Company Performance in Rwanda aimed to explore the connection between a company's stock market listing and its performance. Examined within were firms listed in the Rwanda Stock Exchange, specifically Bralirwa, KCB, and BK. Utilizing a quantitative research design, the study relied solely on secondary data, primarily the financial statements of the three companies that operated in Rwanda between 2008 and 2015. The scope included BK, Bralirwa, and KCB. Data gathered from 2010 to 2012 was structured in tables, with financial ratios computed and subsequent analysis conducted using SPSS to ascertain the relationship between stock listing and financial performance. The results demonstrated a positive yet statistically insignificant relationship between stock listing and the financial performance of the listed firms. Notably, the correlation between financial leverage and financial performance lacked statistical significance (R = 0.303, P > 0.01) and showed a negative correlation with market ratio (0.582, P > 0.01). Recommendations included a call for improved liquidity management, especially in working capital for firms like BK, to address the impact on liquidity levels while maintaining financial stability. Stakeholders were encouraged to recognize the linkage between stock listing and financial performance and adopt suitable measures to assess and analyze the financial status of companies. Moreover, the study revealed that companies in Rwanda tend to rely more on short-term debt than long-term debt, potentially due to the underdeveloped bonds market in the country. Liquidity ratios exhibited a negative relationship with financial leverage, indicating that highly profitable and well-performing companies in Rwanda tend to have less debt and rely more on internal financing sources, aligning with the pecking order theory. Furthermore, the study emphasized considering the market value of capital structure in evaluating stock listing, given its stronger connection to financial performance compared to the book value. Keywords: Stock Market, Listing, Performance of Companies, Rwanda Stock Exchange, Liquidity.

Liquidity risk in FinTech lending: Early impact of the COVID-19 pandemic on the P2P lending market

This study empirically investigates the impact of the COVID-19 pandemic on the liquidity risk incurred by the peer-to-peer (P2P) lending market. As the pandemic adversely affects financial markets globally, a better understanding of the dynamics of successful P2P lending is necessary under the conditions of financial distress. By using the cross-country database of secondary market listing outcomes at Bondora (Estonia) and employing probit, ordered probit and tobit regression methods, we provide evidence of the pandemic-induced exposure to liquidity risk in the P2P lending market. Despite increased volatility in the financial markets, results show that COVID-19 risk increases the probability of successful listing during the pandemic. However, this outcome comes at significant liquidation costs for investors in the form of higher premiums. Further analysis based on listing outcomes and loan characteristics shows a negative association between COVID-19 risk and share of overdue loans and average overdue days in secondary market listings. Simultaneously, more experienced investors dominate the market as COVID-19 risk increases, a trend that is reflected in shorter listing times. The findings of this study imply certain early tendencies in financial markets during pandemic-induced turmoil and open new avenues for further research.

Comparison Analysis of the Valuation Difference Between A-Share & Hong Kong Stock

Since the 21st century, China's economy has shown a medium-rapid development trend. To be specific, a large amounts of enterprises have chosen the financing strategy of dual listing in the Chinese market and the international capital market in the development and development process of China's capital market. As a matter of fact, with different trading mechanisms and valuation strategies everywhere, the share price of the same company in different markets is also biased. On this basis, in order to explore this phenomenon, this study selects Tsingtao Beer, the first local Chinese enterprise listed in the A-share market and H-share market in the A-share market, as the research object. The aim is to systematically evaluate the enterprise through the cash flow discount method. According to the analysis, this study compares and analyzes the reasons behind the stock price difference, and gives investors more scientific theoretical investment suggestions. Overall, these results shed light on guiding further exploration regarding to dual listing investment analysis.

Analysis of NVIDIA's Acquisition of Mellanox Tech-nologies, Ltd. Based on PEG and EVA Valuation Model

The docking of AI and industrial applications still requires software algorithm optimization and threshold lowering, the variety of real-world application scenarios is limited, and the maturity of new scenarios is still low. All of these issues still exist in the AI business in 2019. The globe started integrating technology and conducting chip research and development. Enterprises frequently run across obstacles in the areas of capital, technology, and management when they are trying to grow their operations. Businesses frequently opt for bond issuance, stock market listing, mergers & acquisitions, and other strategies to broaden the area of operations, modernize the management style, and boost competitiveness to address these issues. Based on PEG and EVA valuation models, this study examines the goals and outcomes of NVIDIA's M&A team for the largest M&A transaction in NVIDIA's history. It is determined that the M&A behavior was effective by comparing the valuation of NVIDIA's share price before and after it engaged in M&A activity. According to the PEG and EVA valuation models, it is discovered that NVIDIA's share price is marginally overvalued following the merger and acquisition.

An Investigation into the Ease of Investing in Upcoming Small and Medium Sized Companies through LEAP market listing: A Malaysian Case

: The research is to derive a better understanding of the optical or objective of the existing listed Leap Market counters been through before the initial public offer, hence whether it has derived their objective in the capital market after listing. Ideally, the Leap Market being the creation of the new capital market is to assist Small and Medium Entrepreneurs Corporation (“SME corporations”) to think about the bigger skill for funds raising by diluting their equity shares rather than depending on the borrowings. With this finding, it could provide as guidelines for any SMEs Corporation who wish to go for listing hence also analyze on the feedback from the existing listed SMEs Corporation on their success journey and provide a recommendation that could encourage more SMEs Corporation in various industry to go for listing, which would be able to create more opportunities to the potential investors participation and setting as a reference to help the market in the under developing country.

It takes two to tango: A taxonomy of franchise success determinants

PurposeThe authors conduct a structured analysis of the literature on the determinants of economic and financial franchise performance and develop an integrative framework that unifies the literature from franchisor as well as franchisee perspectives.Design/methodology/approach53 relevant research articles on economic and financial franchise success published between 1976 and 2020 were identified. After providing an overview of the empirical methods and theoretical perspectives found in the literature, an original classification system of franchise success determinants was developed.FindingsMore than 50 different variables impacting economic or financial franchise success were identified and grouped into ten distinct categories. The most impactful categories are the franchise relationship, franchisee characteristics and capabilities, franchisor variables and the franchise environment. The study’s integrative framework illustrates not only the impact of these factors on franchise success, but also reveals which areas require more attention.Research limitations/implicationsAs the study focused on understanding the determinants of franchise success, any measures related to franchise failure were excluded. Also, the role of venture capital and stock market listing as growth strategies in the franchise sector were excluded.Practical implicationsThe study’s framework shows how the management of franchise success is complex and that franchise relationship, franchisee and franchisor variables as well as the franchise context need to be taken into account. It illustrates that there is a hierarchy with which these determinants should be prioritized.Originality/valueThe article proposes the first systematic review of the literature on the determinants of economic and financial franchise success. The contribution offers both, researchers and practitioners, new and useful insights for future knowledge development in the field.

Endogenous market choice, listing regulations, and IPO spread: Evidence from the London Stock Exchange

AbstractThis study examines the endogenous market choice and its impact on underwriter spread if Alternative Investment Market (AIM) IPOs that meet Main Market (MM) listing requirements had issued equity in the MM during the 1995–2021 period. We find that the spread is 1.33% higher in the AIM than the MM for IPO listings that meet the MM listing requirements. This finding suggests that AIM companies, meeting the MM listing requirements, could have saved more than £100 million by going public through the MM than the AIM market. We also find that this spread differential is attributed to the issuing firms' market self‐selection. We demonstrate that listing requirements in the MM have an impact on the gross spread. The Propensity score matching results show that AIM firms that meet the MM market listing requirements pay a 0.921% higher spread which is significant at a 1% level compared to the MM market IPOs.

A European Empirical Study of Institutional Differences in IPOs Anomalies

The present research shows the influence of institutional differences on the performance of initial public offerings (IPOs), both at the level of initial underpricing and at the level of 1-, 3- and 5-year performance. Our results represent a relevant empirical contribution to the international evidence because they allow us to test the influence of institutional differences on initial and long-term performance in a large database consisting of IPOs from 18 European countries, given that the European framework has been less analysed than the U.S. institutional environment. The main novelty and contribution of this research in relation to previous investigations is that those existing to date only analyse the institutional effect on the anomaly that occurs on the first day of IPO listing, i.e., underpricing, whereas this study is more ambitious; it considers the institutional effect on both underpricing and the long-term performance of the IPOs considered, which makes it possible to cover subsequent returns of up to 5 years after the start of the stock market listing. It is therefore, to our knowledge, the most comprehensive study to date on the effect of institutional factors on the two IPO anomalies: short and long term.

REGULATION OF THE POSITION AND RESPONSIBILITY OF NOTARIES REGARDING THE SUPERVISION OF FINANCIAL SERVICES AUTHORITIES IN THE DEVELOPMENT OF THE CAPITAL MARKET INDUSTRY IN INDONESIA

This study was conducted to examine and analyze the regulation of the authority, position, duties and responsibilities of a Notary and Supervision of the Financial Services Authority. To review and analyze the implementation of regulations on the authority, position, duties and responsibilities of a Notary Public and Supervision of the Financial Services Authority. To review and analyze efforts to regulate the authority, position, duties and responsibilities of a Notary and Supervision of the Financial Services Authority in the development of the capital market industry in Indonesia. This research is a normative juridical research, namely research that is focused on examining the application of rules or norms in positive law by using a legislative potivist conceptional approach, which views that law is identical to written norms that are made and promulgated by institutions or officials who authorities and views the law as a normative system that is autonomous, closed and detached from people's lives. This study describes the facts and data regarding the duties and responsibilities of one of the supporting institutions, namely the Notary before and after the Limited Liability Company listing in the capital market. The results of the study show that the role of a notary in the capital market is a necessity to serve the investment community in fulfilling the mechanism in the capital market. Notaries are public officials authorized to make authentic deeds and are registered with the Financial Services Authority (OJK).

Factors Affecting Listing of Small and Medium Enterprises on LuSE Alternative Investment Market in Zambia: A Case of Lusaka Business District

Economic growth in both developed and developing nations is strongly linked to the growth of alternative investment markets. Alternative markets for the listing of start-up companies have been established and launched by many exchanges in order to assist small and medium businesses in raising finance through initial public offers and listing their shares for trade. The rise of these alternative markets has been slow, particularly in poorer countries. The study’s major goal was to discover the characteristics that influence SMEs’ ability to list on the Lusaka Stock Exchange Alternative Investment Market (LuSE AIM). Examine whether information accessibility is a critical factor in determining SMEs listing on the Alt-M; determine if regulatory requirements are a factor to consider when SMEs decide to register on the AIM; determine if corporate governance is an important factor in determining SMEs listing on the AIM; and determine if SMEs support platforms are important factors in determining SMEs listing on the AIM. The study used a quantitative cross-sectional design using a survey as the research approach to attain this goal. The approach was deemed appropriate and useful towards assessing of the elements influencing listing of SME firms on the securities exchange. The population of the study included all 1663 SMEs registered under Zambia Chamber of Small and Medium Businesses Association in Lusaka. Stratified sampling technique was used for the study where random sampled quotas were selected from each industry. The sample size of SMEs derived 322 companies and only 161 SMEs successfully participated in the study as respondents. Primary data were used to obtain information in this study using closed-ended questionnaires. To identify the characteristics that influence the listing of SMEs on the stock market, the study used quantitative analysis and factor analyses. The parameters that determine the listing of SMEs on the Alternative Securities Market were identified using factor analysis. Factor I (information accessibility), Factor II (regulatory needs), Factor III (business governance), and Factor IV (corporate governance) identified as the four elements (SMEs support platforms). Information accessibility, enabling legislative requirements, sound corporate governance, and SMEs support platforms were identified as the barriers to small and medium firms receiving finance through the LuSE Alternative Investment Market, according to the conclusions of the research study. The findings of the study suggest that availability to information is critical to listing, and that a regulatory environment that is friendly to small and medium firms will encourage them to list. Furthermore, while corporate governance is not a prerequisite for SMEs to list, good corporate governance practices have been proven to promote SMEs to list. According to the survey, relevant authorities should educate SMEs on the critical information required for securities market listing so that they may make educated judgments. Policymakers should make it easier for SMEs to expand by enacting favorable policies and making it easier for them to list on the AIM. Corporate governance regulations should be tailored to the structure and environment of SMEs by policymakers. The government should develop an atmosphere that includes support systems tailored to SMEs. Putting support platforms in place increases SMEs’ desire to list.

Secondary market listings in equity crowdfunding: The missing link?

While the prevalence of equity crowdfunding has increased, investors have had very few opportunities to exit such investments. Thus, several equity crowdfunding platforms have started considering the development of secondary markets for buying and selling shares. Using detailed data from the world's first secondary market for equity crowdfunding, we investigate whether plans to list on the secondary market increase investor participation and thus the amount of money entrepreneurs raise during their equity crowdfunding campaigns. We find that in the early days of the secondary market, communicating a listing plan attracted more investors and larger investment sums. However, these effects largely disappeared after the first two years of secondary market operation. We interpret this to stem from investors' recognition of the insufficient liquidity of the secondary market and thus its probable inability to constitute a viable exit route. We also find that ex post, many entrepreneurs forgo listing, especially if their campaigns are not sufficiently successful, which implies significant costs associated with a listing. Our findings offer valuable insights to platforms aiming at launching secondary markets and regulators responsible for validating relevant initiatives. Specifically, we highlight how participation in equity ownership can be increased through well-functioning secondary markets, which however are difficult to achieve within equity crowdfunding.

Does Sunlight Kill Germs? Stock Market Listing and Workplace Safety

AbstractThis study highlights the positive impact of a stock market listing on workplace safety. We find that workplace injuries in publicly listed firms are lower than those in comparable private firms, and this effect relates to heightened monitoring by the media and regulators. The media pays more attention to public firms’ safety issues than to those of private firms, and the reduced media scrutiny due to local newspaper closures leads to greater increases in injuries in public firms. Regulators also monitor public firms more strictly, evidenced by a higher likelihood of nonroutine inspections and larger penalties for detected violations.

The Decision to Go Public and Business Group Affiliation: Evidence from India

Using a comprehensive sample of Indian stock market listings from 2000 to 2014, we examine the effect of business group (BG) affiliation on the decision to go public. Supporting the internal capital markets hypothesis, we find that BG firms are less likely to go for initial public offerings (IPOs). Compared to stand-alone firms, BG firms that go public are older and less profitable. Further, this article elucidates the dynamics of the decision to go public within BGs (with multiple unlisted eligible affiliates in their portfolio) as extant models fail to explain the same adequately. We examine the relative importance of reputation, capital raising, and control considerations on the decision to go public. We find that the affiliate that invests in other group affiliates’ financial assets is more likely to be taken public. Affiliates that are net receivers of intragroup support are less likely to list. BG’s reputation has a positive impact on the choice of the affiliate to list. JEL Classifications: G30, G32

Earnings Management and Company Characteristics: Empirical Evidence from Algerian Companies

Abstract This paper attempts to analyze the impact of some Algerian companies’ characteristics (size, activity sector, property, listing, and nature of financial statements) on the level of earnings management. The research employed 117 observations for 26 Algerian companies from 2016 to 2020 and used a multiple linear regression model and discretionary accounting accruals to measure earnings management. According to the findings, earnings management in Algeria is explained by the companies’ sizes, activity sectors, and stock market listing. However, the nature of financial statements and the ownership of the companies do not affect earnings management. These results are beneficial for regulators and auditors since they provide empirical evidence about the characteristics of companies that manipulate earnings. Consequently, they can enable them to take appropriate actions to enhance the quality of financial reports, whether when developing and reviewing accounting standards by regulators or when examining financial information by auditors.

Effect of bond market development on economic growth of selected developing countries

PurposeThis paper examines the effect of bond market development on economic growth of selected developing countries from 1990 to 2020. Previous studies provide inconsistent results on the effect of bond market development on economic growth. Some results reveal positive effects while others show negative effects of bond market development on economic growth. These conflicting findings have motivated research.Design/methodology/approachThe autoregressive distributed lag (ARDL) and co-integration methods are used for analysis. The gross domestic product per capita proxies economic growth while government bond capitalisation and corporate bond capitalisation measure bond market development.FindingsThe findings unveil a long-term effect within the series. The results disclose that government bond capitalisation, trade openness and inflation positively affect economic growth while corporate bond capitalisation and domestic credit to the private sector presents negative effects on economic growth.Research limitations/implicationsThe results propose that the governments should issue more bonds to raise funds for long-term economic growth initiatives. The governments should promote bond market development such that the corporate bonds issued boost economic growth by limiting lengthy documentations and bottlenecks in the bond market listing and issue procedures. The policymakers and regulatory authorities should implement policies which attract investors and encourage companies' listing in the countries' bond markets.Originality/valueThe study’s findings add value that government bond capitalisation positively impacts economic growth, while corporate bond capitalisation negatively affects economic growth in developing countries.