Market Performance Indicators Research Articles

Environmental, social and governance performance: influence on market value in the COVID-19 crisis

PurposeThe aim of this paper is to study whether adoption of sustainability policies by firms makes their stock market performance resilient to the downside risk during the crisis period.Design/methodology/approachThe paper empirically examines the relationship between environmental, social and governance (ESG) and stock market performance for Indian companies that have consistently been a part of Refinitiv Eikon ESG database. Further, the study examines whether there exist significant differences in stock market performance of high ESG and low ESG-compliant firms during crisis period. The sample was made up of 70 Indian firms studied over the period 2016–2019 defined as “normal period” as well as for the declared COVID-19 crisis period, i.e. January–March 2020, and full year 2020. The authors used multivariate panel data regression, robust least square multivariate regression, pooled OLS model and two-stage least square regression method.FindingsThe study extends the existing literature by investigating the impact of ESG performance on market value of firms during the crisis period. Based on the stakeholder and “flight to safety” theory, the authors hypothesized that ESG would have significant positive effect on the stock market performance during crisis period; however, the results provide robust evidence that in a well-specified model capturing the effect of accounting-based measures of performance, Size, Growth, Risk and Dividend yield, ESG had no explanatory power over the stock market performance of ESG-compliant firms during crisis period. Furthermore, no significant difference in stock market performance indicators between high and low ESG-compliant firms was observed during the crisis period of 1Q2020 as well as for full year 2020. On contrary, the study finds dividend yield to be statistically significant in determining stock market performance of Indian firms during crisis period. The study extends the existing literature by coining the term, “ESG irrelevance” during crisis period.Research limitations/implicationsThe main limitation of this study is its limited sample size because there are very few Indian firms that have secured consistent ESG rating. The study focuses on consistently rated firms to avoid the impact of “greenwashing”. Further, the study is focused on India, which limits the generalizability of our findings to other emerging countries.Originality/valueTo the best of our knowledge, this is among the first few studies that examines sustainability and stock market performance of Indian firms during COVID-19-led crisis period. Our findings highlight no significant difference between stock market performance of high ESG firms and low ESG firms indicating that investors who wish to create wealth by investing in ESG-compliant stocks in India can do so without worrying about the companies’ ESG rating scores.

The relationships between Canadian firms' lobbying activities and their market and accounting performance

The main objectives are to highlight the nature and scope of lobbying activities carried out by Canadian firms, and analyse the link between these activities and firm market and accounting performance indicators. Data on companies listed on the S&P/TSX index were analysed, covering the period from 2009 to 2018, inclusive. The main findings show that 26.6% of the firms under study have engaged in lobbying, with this proportion consisting, on average, of larger firms. The two industries at the forefront of these activities were mining, oil and gas, and manufacturing. Most of the lobbying activities under study focused on economic and multiple issues. While bivariate analyses (ANOVA and correlations) show that these activities in their scope and nature are significantly related to market and accounting performance indicators, multivariate GLM analyses demonstrate that only the variable 'number of salaried lobbyists' is positively and significantly linked to accounting and market performance indicators.

Measuring the financial performance of insurance companies during the financial crisis

Assessing the financial performance of insurance firms during periods of global economic difficulty has been a topic of great importance to the insurance industry. Interest in sound finance practices peaked in the years following the recession of 2008. Yet, there has been relatively little analysis of the UAE insurance industry and its performance during the financial crisis.The aim of this study is to measure the financial performance of three insurance companies operating in United Arab Emirates during the financial years 2006 to 2009, with the specific goal being to measure the impact of the financial crisis on performance. The analysis examines company performance on key performance indicators such as profitability, liquidity, capital structure and market performance indicators over the years 2006 to 2009. The findings show generally high levels of instability for profitability indicators. Regarding both liquidity and capital structure indicators, the firms in question experienced lower levels of variability and instability across the board. Performance on the earnings per share measure experienced a higher level of volatility, in contrast to the market value per share indicator which remained relatively stable throughout the period in question. Furthermore, profitability levels showed a systemic & notable decline in the crisis year 2008.

Digital Marketing Strategies and Marketing Performance of Private Secondary Schools in Port Harcourt, Nigeria

The study examined the relationship between digital marketing strategies and marketing performance of private secondary schools in Port Harcourt. The population of the study comprises of two hundred and fourteen (214) registered private secondary schools in Port Harcourt (Rivers State Yellow Page Directory, 2014/2015). Considering the need for precision and elimination of unnecessary biases on the sample size determination, the taro yamen formula was used to determine elements of the population, which is one hundred and thirty-nine (139) private schools in Port Harcourt. The study adopted the simple random sampling techniques, while the Pearson product moment correlation coefficient (PPMCC) assisted by the statistical package for social sciences (SPSS) Version 21.0 was used in testing the hypotheses. Two copies of the questionnaire were administered to each of the one hundred and thirty-nine (139), private secondary schools in Port Harcourt, totalling two hundred and seventy-eight (278) copies of questionnaire. Of the two hundred and seventy-eight (278) copies of the questionnaire that were distributed, two hundred and fifty-nine (259) copies representing 93.2% were retrieved and nineteen (19) which represents 6.8% were not retrieved. The study revealed that there is strong and positive relationship between digital marketing strategies and marketing performance of private secondary schools in Port Harcourt. The study further concludes that the dimensions of digital marketing strategies impacts marketing performance indicators. The study however recommends that private secondary schools in Port Harcourt should be more accustomed to the latest technology in the educational sector to be at par with international standards and to compete favourably on the international scene.

HAS STOCK MARKET DEVELOPMENT ENGENDERED SHORT AND LONG-RUN INCLUSIVE GROWTH IN NIGERIA?

This study examines the impact of capital market performance on economic growth. Time series data obtained from the official publications of the Securities Exchange Commission, Nigerian Stock Exchange and Central Bank of Nigeria were analyzed using regression estimation technique, in which we related the proxies of stock market performance indicators (such as stock market capitalization, value of new issues and value of shares traded) to economic growth (represented by the Gross Domestic Product). Results show that both market capitalization and the value of new issues have a positive relationship with economic growth while value and the volume of shares traded had negative relationships with economic growth . It was therefore recommended that the stock market should be made more liquid in order for turnover rate to increase. This will boost investors' confidence and awareness and would make funds available for long-term development of the industrial sector and the economy.
 Keywords: Stock Market Development, Long-Run, Inclusive Economic Growth.

INFLUENCE OF FRAUD AND CORRUPTION ON STOCK VALUE TRADED IN THE CAPITAL MARKET: NIGERIA EXPERIENCE

<p>The study examined the influence of fraud and corruption on stock value traded in the Nigeria capital market. The social learning theory forms the basis of this research. The fundamental assumption of the theory is that deviance and conformity can result from the same learning process. Definitions, differential association, modelling, and reinforcement are the four factors that affect social behaviour. One is predisposed to either conforming or deviant behaviour depending on how these elements interact. The Nigerian Stock Exchange served as the source of secondary data. Descriptive and inferential statistics were applied for the analysis in this study. The results demonstrate that stock value traded on Nigeria's capital market is not significantly impacted by fraud or corruption. The study recommended that more room should be given to stock value trade as one of the capital market performance indicators in the market which will help investors to explore.</p><p><strong>JEL:</strong> D40; D53; D63</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0107/a.php" alt="Hit counter" /></p>

Impact Analysis of Pandemic on Nigeria’s Stock Market Performance

We empirically conducted a distinct analysis of the efficiency of the stock market before and during the Covid-19 pandemic in Nigeria as well as the impact of the Covid-19 pandemic on several indicators of stock market performance. Data were collected on stock variables on monthly basis for the pre-Covid-19 era (2018M02 to 2020M01) and Covid-19 pandemic era (2020M02 to 2022M01) from the Central Bank of Nigeria Statistical Bulletin, while data on the numbers of daily new confirmed cases (New cases and deaths) as well as the government response stringency index on COVID-19 pandemic were obtained from Our World in Data (OWID). We leveraged numerous advantages of the Data Envelopment Analysis (DEA) to estimate stock market efficiency before and during the Covid-19 pandemic for the purpose of comparison. Also, we employed the Autoregressive Distributed Lag Mixed Data Sampling (ADL-MIDAS) approach to conduct the impact analysis of the Covid-19 pandemic on stock market performance. We found that, in terms of efficiency, the stock market was more efficient during the Covid-19 pandemic than in the pre-Covid-19 era, being the only active market among other financial markets especially when several restrictions and total lockdown were imposed. In terms of returns and volatility, the study concluded that the Covid-19 pandemic did not significantly influence Nigeria’s stock market performance negatively. However, the government stringency measures had a significant positive impact on the stock market return in Nigeria. Our findings are instructive to policymaking and financial regulation.

Re-Engineering of Marketing for SMEs in Energy Market through Modeling Customers’ Strategic Behavior

In recent years, the energy market has seen an increase in small and medium enterprises (SMEs) participating in the sector and providing relevant services to customers. The energy sector SMEs need to acknowledge whether reengineering their marketing strategy by modeling customers’ website behavior could enhance their digital marketing efficiency. Web Analytics refers to the extracted data of customers’ behavior from firms’ websites, a subclass of big data (big masses of uncategorized data information). This study aims to provide insights regarding the impact that energy SMEs’ web analytics has on their digital marketing efficiency as a marketing reengineering process. The paper’s methodology begins with the retrieval of behavioral website data from SMEs in the energy sector, followed by regression and correlation analyses and the development of simulation models with Fuzzy Cognitive Mapping (FCM). Research results showed that customer behavioral data originating from SMEs’ websites can effectively impact key digital marketing performance indicators, such as increasing new visits and reducing organic costs and bounce rate (digital marketing analytics). SMEs in the energy sector can potentially increase their website visibility and customer base by re-engineering their marketing strategy and utilizing customers’ behavioral analytic data.

Modeling the dynamic effects of macroeconomic factors on housing performance in Kenya

PurposeThis paper studies the dynamic effects of selected macroeconomic factors on the performance of the housing market in Kenya using Autoregressive Distributed Lag (ARDL) Models. This study aims to explain the dynamic effects of the macroeconomic factors on the three indicators of the housing market performance: housing prices growth, sales index and rent index.Design/methodology/approachThis study used ARDL Models on time series data from 1975 to 2020 of the selected macroeconomic factors sourced from Kenya National Bureau of Statistics, Central Bank of Kenya and Hass Consult Limited.FindingsThe results indicate that household income, gross domestic product (GDP), inflation rates and exchange rates have both short-run and long-run effects on housing prices while interest rates, diaspora remittance, construction output and urban population have no significant effects on housing prices both in the short and long run. However, only household income, interest rates, private capital inflows and exchange rates have a significant effect on housing sales both in the short and long run. Furthermore, household income, GDP, interest rates and exchange rates significantly affect housing rental growth in the short and long run. The findings are key for policymaking, especially at the appraisal stages of real estate investments by the developers.Practical implicationsThe authors recommend the use of both the traditional hedonic models in conjunction with the dynamic models during real estate project appraisals as this would ensure that developers only invest in the right projects in the right economic situations.Originality/valueThe imbalance between housing demand and supply has prompted an investigation into the role of macroeconomic variables on the housing market in Kenya. Although the effects of the variables have been documented, there is a need to document the short-run and long-term effects of the factors to precisely understand the behavior of the housing market as a way of shielding developers from economic losses.

The Impact of 2022 Russia-Ukraine Conflict on the Financial Market: Evidence from China

This paper concerns the effect of the 2022 Russia-Ukraine conflict on the Chinese stock market. The event has caused chain reactions on a global scale, among which the soaring energy prices caught the most attention for having the most significant influence. Using the international crude oil futures’ settlement prices and two market indexes as indicators of energy prices and Chinese stock market performance, this paper mainly focuses on their changes before and after Russia-Ukraine War. The data covers the period from 25 November 2021 to 14 April 2022, and time series analysis methods, including the Vector autoregression (VAR) model and ARMA-GARCH model, are used in the analysis process. Also, this paper conducts impulse response to examine the impact of one unit oil price change on the Chinese stock market index over time. As a result, a significant correlation between the upsurge in the energy prices and the downtrend of Chinese stock market performance can be found after the breakout of the Russia-Ukraine conflict, suggesting that international incidents can cause global turmoil. Nevertheless, for a mature market with good resilience, the influence of the strike would gradually evaded.

Women on Board of Directors and Firm Performance of Russian Companies: Does CSR Disclosure Matter? (WITHDRAWN)

While a number of studies explore a direct relationship between female representatives on board and firm performance, this paper proposes an alternative idea investigating how corporate social responsibility (CSR) disclosure mediates this relationship in the context of the transitional Russian economy, where gender disparity in board of directors remains high. The focus on Russian companies brings new insights on this type of relationships and opens the discussion about the effectiveness of corporate governance systems in emerging and transition economies, as well as extends the discussion about female board representation in emerging contexts. Stakeholder theory is used for developing the theoretical background. An empirical analysis is conducted on a sample of 223 publicly listed Russian companies with the data for the period 2012-2017. We found that women representatives on boards negatively affect CSR disclosure while having a positive effect on both accounting and market performance indicators. Explanations for these findings are deeply rooted in social and cultural specificity, masculine type of women’s behaviour and standards of the corporate governance system in Russia when female directors predominantly impact financial aspects of corporate activities rather than strategic ones.

STATISTICAL EVALUATION OF EXCHANGE PERFORMANCE OF BANKS TRADED IN THE SUSTAINABILITY INDEX

Good financial values are not sufficient alone for the survival of today’s businesses, which sustain their existence in the global competitive environment. For businesses to continue their activities, the expression of sustainability has come to the forefront, and therefore, the concept of corporate sustainability emerged from social, economic, and environmental obligations. The Sustainability Index is calculated under the umbrella of Borsa Istanbul to ensure that businesses implement their sustainability strategies on economic, environmental, and social issues and inform investors. The purpose of the study was to investigate whether the stock market performance indicators of the six banks which have the right to be traded in the framework of the BIST Sustainability Index for 2013, when they were not included in the index, and for 2020, when they were included, by using the Paired t-test. As a result of the analyses made for this purpose, significant differences were detected for the price/earnings ratio, market value/book value, transaction volume, and cash flow rate variables aside from share price. It was interesting that only the transaction volume increased for banks after they were included in the index. Borsa Istanbul Sustainability Index is considered a new index, and it is considered that the effect of banks on stock values and other performance indicators will turn positive as the index deepens.

The EFFECT Of Foreign Portfolio Investment (FPI) On The Performance Indicators: A Standard Analytical Study Of The Qatar Stock Exchange For The Period (2010-2020)

The aim of the research is to shed light on importance of foreign portfolio investment to attract foreign capital in order to revitalize the stock market. It also investigates the most important advantages provided by foreign portfolio investment and the extent of its reflection on market performance indicators. Furthermore, it measures the impact of foreign portfolio investment on the performance indicators of the Qatar stock exchange. The study was applied to the Qatar stock market for an annual data series from (2010-2020), and the statistical program (Eviews10) was obtained in analyzing the data. Results showed there is an impact of foreign portfolio investment on the performance indicators of the Qatar stock market. The results also proved the significance of both the market capitalization index and the financial depth index in the regression model used. It is recommended to developing investment agencies in order to provide accurate information regarding available investment opportunities. It also suggested providing tax incentives to investors who keep shares for a certain period in order to encourage long-term investment in stock market.

ACTUALISATION OF INNOVATIVE MARKETING COMMUNICATIONS WITHIN MODERN TRENDS IN THE PROMOTION OF GOODS AND SERVICES

The article summarises the approaches to the classification of innovative marketing communications used within the development of modern trends in the promotion of goods/services. The main goal of the study is to systematise and determine the prospects of innovative marketing communications used in Ukrainian and foreign markets. The systematisation of the literature on and approaches to solving the problem of the development of marketing communications has revealed that, despite the existence of a certain body of scientific and theoretical studies, there is a need to study a set of tools of this category, which are typical of both foreign and Ukrainian markets. The relevance of solving the scientific problem is that the modern role of marketing communications is a priority component of the success of both the entire marketing system and performance indicators of businesses, and the study of their current trends is necessary for improving market positions. The article studies systematisation and identification of the prospects of innovative marketing communications in the following logical order: description of approaches to the communications in Ukrainian and foreign markets; defining the prospects of their development and use. The methodological tools of the research included the system approach method and the method of trends. The study focuses on the years 2021–2022. The US and some European countries (including Ukraine) were chosen as the object of the study, since these countries were the focus of the existing scientific analysis of the studied issues. The article presents the results of an empirical analysis of the implementation of innovative marketing communications, which proved that the foreign market trends are generally similar to Ukrainian ones. The study empirically confirms and theoretically proves that countries that have an active business environment, even in case of a developing economy, quite effectively implement the latest approaches to the management of marketing communications, because their composition and level of efficiency affect economic and market results. The results of the study can be useful for Ukrainian businesses to apply in practice in terms of choosing optimal marketing communications as well as for scientists in the context of the development of scientific research and studying the current state of the issue under study.

The impact of the adoption of IFRS standards on the informational relevance of financial performance indicators of companies listed in the Casablanca BVC

The adoption of international financial standards should provide companies with enormous benefits, especially through the production of reliable and high-quality financial information by strengthening the explanatory power of accounting and stock market performance indicators. These indicators are key elements used to assess the value created by firms. This article is proving to be a great contribution to scientific research in this field. It will allow an empirical approach to assess the impact of the adoption of IFRS standards on the informational relevance of financial performance indicators. In figures, 93 observations were collected from companies listed on the Casablanca stock exchange from 2015 through 2020. We used a theoretical framework based essentially on the theory of financial market efficiency and a series of empirical tests on the two samples: IFRS- Sample Standards and Local- Sample Standards. Ultimately, our main results seem to indicate that the implementation of IFRS standards contributes to slightly to the improvement of the informational relevance of accounting figures for Moroccan companies listed in the Casablanca stock market. JEL classification : M41 Paper Type : Empirical research

The impact of social media marketing strategies on promoting sustainability of tourism with fuzzy cognitive mapping: a case of Kalanggaman Island (Philippines)

The current literature has espoused the role of social media platforms in promoting tourism destinations. Despite such advances, limited works are reported on how social media foster the sustainability of tourist destinations. This work builds upon the argument that sustainable tourism (ST) agenda and initiatives can be integrated alongside the traditional competitive mission of social media marketing as a communications strategy of tourism stakeholders. With such an argument and the scarce literature on the topic, this paper analyzes the impact of social media strategies on marketing indicators contextualized within ST. In addressing this objective, a fuzzy cognitive mapping technique is adopted to examine the changes in marketing performance indicators given an initial set of activation values of social media marketing strategies. A case study in Kalanggaman Island (Philippines), an emerging tourist destination, is carried out to demonstrate the evaluation process. Three policy scenarios with interrelated social media marketing strategies are examined: minimal effort, moving visuals, and collaborative strategies. The minimal effort scenario increases counting metrics, comments, and Web traffic, while the moving visuals scenario yields increases in reach, counting metrics, comments, and Web traffic. Finally, the collaborative strategies scenario enhances indicators on awareness, the share of voice, counting metrics, comments, and lead. The findings generated from the proposed framework provide policy- and decision-makers a platform for analyzing possible social media policies in disseminating the ST agenda.

Granger Causal Nexus between Good Public Governance and Unemployment: Evidence from Cross-Country Panel Data Investigation

The purpose of this paper is to investigate the causality between good public governance captured through six World Bank governance indicators and unemployment rate (unemployment as % of the total labour force) as a clear indicator of labour market performance. Although some previous papers have empirically demonstrated the casual nexus between country-level governance and economic development, this study investigates the relation of causality between public governance and the labour market. By employing Granger non-causality tests, we tested two hypotheses with regard to this nexus. We argue that bidirectional Granger causality is predominant for the relation of country-level governance and unemployment. Finally, our paper offers a complex quantitative analysis of the causal nexus between public governance quality and one of the most known labour market activity indicators for an extended panel dataset of countries worldwide for 10 years.

Religion and Labor Market Performance: Is It What You Believe or How Much?

A growing corpus of literature has explored the influence of religion on economic attitudes and behavior. The present paper investigates the effect of religion on labor market performance using a novel approach to control for the endogeneity of religion. It proposes contingency experience, individual experiences of existential insecurity, as an instrumental variable of a person’s religiosity. The empirical analysis uses data from a household survey in South Africa specifically designed for this study. The econometric approach is the estimation of instrumental variable ordered probit and linear probability models. Using the Centrality of Religiosity Scale (CRS), the analysis differentiates between effects of individual religious intensity and of religious affiliation. The findings show that individual religiosity, measured in the CRS, has a robust and positive effect on labor market performance. Religious affiliation does not seem to affect labor market performance. The positive effect on religiosity is documented in a set of ordered and binary outcome models across different indicators of labor market performance. The study concludes that the intensity of belief exerts an influence on labor market attitudes and outcomes, while affiliation in religious communities (indicating different content of belief) does not seem to make a difference.

THE IMPACT OF BRAND VALUE ON MARKET PERFORMANCE INDICATORS OF HIGH-TECHNOLOGY ENTERPRISES

Brand valuation gained in importance in the 1980s, when a difference between the price at which some enterprises are bought and their value, according to the balance sheet, was noticed. Brand value can be considered an intangible asset of an enterprise, whose impact on the market performance indicators must be taken into account. This paper examines the relationship between brand value and selected market performance indicators using correlation and regression analysis. The analysis is based on Interbrand data on brand value and annual reports of selected enterprises from high-technology sector. The sample included top 5 enterprises from high - technology sector, whose corporate brands are on the list of the 100 most valuable brands, in all years of the analysed eight-year period (from 2012 to 2019). This paper discovered a statistically significant positive relationship between brand value and market performance indicators and that brand value positively influences those performances of high - technology enterprises. The focus of this study is on the following market performance indicators: market capitalization, Tobin's Q, market to book ratio and earnings per share. The research contributes to the field of brand value management and emphasizes the importance of investments in corporate branding process.

Individual investor attention and stock market performance——Based on big data measurement

Investor attention is a Sizerce resource, and only the information that investors pay attention to can be reflected in the stock market through transactions. Considering about the development of big data, this paper uses data mining and crawling software to crawl the daily indicators of individual investor attention in 2019. Through a fixed-effect panel data regression model, this paper examines the relationship of personal attention and stock market performance indicators over the same period. This paper found that individual investors’ attention can have a significant positive correlation with the liquidity and profitability indicators of stock market performance.