Market Share Price Research Articles

Impact of Sovereign Debt Credit Rating Revision on Banking Industry: Evidence from G7 Countries

Abstract The aim of this study is to identify the economic impacts on G7 banking industry when sovereign rating is revised. We used event study methodology (t-statistics) and found that sovereign rating changes significantly affect share market prices. It seems that there is information leakage prior to sovereign rating announcement dates as released by the S&P: there are some negative price effects as well on mixed-type rating change effects, such as ‘rating watch’ announcements. These are new findings that may help to extend the sovereign rating literature in terms of findings from multiple countries, and on sustainability of debt taking.

The Effect of Dividend Policy on Stock Price: Evidence from the Indian Market

One of the most debated issue in the field of corporate finance is the relationship between dividend policy and market price of share. There is good amount of literature for and against this issue. The present study has been undertaken to evaluate the effect of dividend policy on market prices of shares of Nifty 50 companies listed on the National Stock Exchange (NSE) for 2008–2017. The data have been analysed by employing multiple panel data regression models namely pooled regression, fixed effect model and random effect model. The Hausman test has been used to suggest the most appropriate regression model. The result of the Hausman test indicates that random effect model is more relevant in describing the relationship among the given variables. The results of the random effect regression model support the relevant approaches of dividend policy. Thus, we conclude that there is significant effect of dividend policy on the stock price of firms.

(Use of Financial analysis indicators, And their contribution to the construction of a model to determine the share price of the market in Sudan (Case study Faisal Bank: استخدام أدوات التحليل المالي في التنبؤ بسعر السهم السوقي في سوق الأوراق المالية بالسودان (دراسة حالة بنك فيصل الإسلامي السوداني)

The study aimed to identify the indicators of liquidity. And their contribution to the construction of a model to determine the price of the market share in Sudan, to highlight the importance of profit indicators in determining the share price of the market, and to identify indicators of indebtedness and the extent of their contribution in determining the share price of the market. The problem of the study was the extent to which liquidity indicators contributed to determining the market price of the stock, and whether the profit indices contribute to determining the share price of the market. Do indicators of indebtedness contribute to determining the market price of the stock? For the purpose of achieving the objectives of the study and finding solutions to the problems of the study, the researcher tested the following hypotheses; first, there is a statistically significant relationship between liquidity indicators and market price. Second, there is a statistically significant relationship between the indices of profitability and market price; third, there is a statistically significant relationship between the indicators of activity and the price of the market share. To test these hypotheses, the study relied on the historical approach, descriptive analytical approach, and the method of deductive approach. The results of the study showed a positive correlation between (65.61%) and the independent variable in the simple regression method (trading ratio) at an error coefficient of 0.0045, (0.008954), the absence of a relationship between the dependent study variable (market share price) and the associated independent variables (in percentages of the debt) , At an error coefficient of (0.150625). The study recommended recommendations such as adopting the proposed applied study models to analyze the trading ratio, adopting the proposed applied study models to analyze profitability ratios, adopting the proposed applied study models to analyze the ratio of total debt to equity

Entropy Economic Model of the Company

The article discusses the entropy approach to the analysis of corporate financial system on the basis of the financial coefficients and market share price rates. The uncertainty of the corporate financial attractiveness is assessed using the entropy indicator of a random vector. Financial indicators such as Liquidity Financial Ratios, Operating Financial Ratios, Leverage Financial Ratios, Profitability Financial Ratios and Market Ratios serve here as vector components. Discrete entropy models of random vectors as well as differential entropy models for continuous probability distributions were used. It is shown that special probability distributions, approximately coinciding with the basic statistical ones for the first two moments, set the boundary of the maximum differential entropy. The entropy indicators were calculated based on the probability and entropy measures.

Financial Ratio Analysis and Market Price of Share of Selected Quoted Agriculture and Agro-allied Firms in Nigeria After Adoption of International Financial Reporting Standard

This study examined the relationship between Financial Ratio Analysis and Market Price of share in the Selected Quoted Agriculture and Agro-allied firm in Nigeria after Adoption of International Financial Reporting Standard(hereafter referred to as IFRS) from 2012 to 2016.The most extant literature on the relationship between Financial Ratio Analysis and Market Price in Nigeria were done when their financial statement is prepared as per Nigerian Accounting Standard and the results of most of these extant studies were mixed. Since Nigeria adopted IFRS in 2012 the relationship Financial Ratio Analysis and Market Price of Share is not yet fully known. This is a gap which this research study intended to address. This study used multiple regression analysis and is limited to the use of data taken from the selected firms’ financial statement. Proxies used for Financial Ratio include Earnings per Share, Net Assets per Share, Liquidity Ratio, Debt Ratio, Return on Asset and Return on Equity. The result shows that Earnings per Share, Net Assets per Share, Debt Ratio and Return on Asset Ratio are positively and significantly related toNigerian Agriculture and Agro-Allied Quoted firms Market Price of Share. Also it was found that the Liquidity Ratio and Return on Equity Ratio are not significantly related to Nigerian Agriculture and Agro-Allied Quoted firms Market Price of Share.

Impact of News Sentiment Analysis on Market Price Movement During the Dividend Period

This study presents development of a system for analysing the polarity of stock market news to guide traders in making better decision when buying, selling or holding stocks during the dividend period. It will also help traders by reducing the risk of making inaccurate decision in trading. Trusted and reliable data such as dividend news, daily share market price, company news and announcements from Bursa Malaysia and The Edge Market will be used for performing news sentiment analysis using Azure Text Analytics. The results show that company news and announcements do not have significant effect on the Malaysia stock prices as the prices move within the range of 0-1%, which is the benchmark of the normal range of daily price movement.

English

This study examines the effect of audit quality on share prices of Nigerian oil and gas firms using the regression and covariance analyses. Findings from the regression anlysis suggests that the composition of the audit committee and auditor type has significant effect on the market prices of quoted firms. There is a positive and significant relationship between audit committee composition and share prices. The covariance analysis suggests that while auditor type (BIG4/NONBIG4), auditor independence, and composition of the audit committee have a positive and significant relationship with market price of shares, tenure of external auditors has a negative relationship with the market price of shares. The implication of the findings is that audit quality will enhance reported earnings and hence the share market prices. The study recommends that firms should strive to associate with the BIG4 external auditors in Nigeria as such an association could enhance the credibility of the audit process and by extension their share prices; regulatory authorities should discourage joint audit and non-audit services to firms because it could threaten the independence of external auditors. Regulatory agencies should also present distinct statements on the tenure of the external auditors to be clearly stated in annual reports. This is because a long attachment between the external auditors and a client may threaten the independence of the external auditors. Key words: Share-prices, audit-quality, auditor-independence, auditor-type.

Penggunaan Pola Produksi Dalam Menentukan Harga Jual Melalui Penerapan Metode Mark Up (Studi kasus pada UMKM Tepung Talas RUSMAN)

The main obstacle of the inability of MSMEs to manage and develop businesses is medium or large scale, one of which is efficient production management and the determination of selling prices that are profitable and sustainable in the face of competitors. One of them is the UMKM Tepung Talas Rusman which is a producer of complementary products with a narrow market share and high price competition, so the determination of the amount of production, calculation of production costs and the determination of the right selling price is very decisive. This study aims to determine the application of production patterns, calculation of production costs and determining the right selling price by analyzing the application of the appropriate markup method in order to be able to continue to provide benefits but still able to produce competitive prices. The results of this study show that the pattern of constant production is in accordance with the current condition of MSMEs. This study also shows the calculation of the correct production costs so that an analysis of the determination of the right selling price can be done. The right mark up method with the ability to cover all production costs creates profitability but remains competitive with the ROI Pricing method. Thus MSME TTR can guarantee the profitability and sustainability of its business.

The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies

This paper analyzes the evolution of the main theories regarding the capital structure and the related impact on risk and corporate performance. The capital structure is a dynamic process that changes over time, depending on the variables that influence the overall evolution of the economy, a particular sector, or a company. It may also change depending on the company’s forecasts of its expected profitability, capital structure being, in fact, a risk–return compromise. This study contributes to the literature by investigating the drivers of capital structure of the firms from the Romanian market. For the econometric analysis, we applied multivariate fixed-effects regressions, as well as dynamic panel-data estimations (two-step system generalized method of moments, GMM) on a panel comprising the companies listed on the Bucharest Stock Exchange. The analyzed period, 2000–2016, covers a cycle with significant changes in the Romanian economy. Our results showed that leverage is positively correlated with the size of the company and the share price volatility. On the other hand, the debt structure has a different impact on corporate performance, whether this calculated on accounting measures or seen as market share price evolution.

A Score Function-Based Method of Forecasting Using Intuitionistic Fuzzy Time Series

Intuitionistic fuzzy set plays a vital role in data analysis and decision-making problems. In this paper, we propose an enhanced and versatile method of forecasting using the concept of intuitionistic fuzzy time series (FTS) based on their score function. The developed method has been presented in the form of simple computational steps of forecasting instead of complicated max–min compositions operator of intuitionistic fuzzy sets to compute the relational matrix [Formula: see text]. Also, the proposed method is based on the maximum score and minimum accuracy function of intuitionistic fuzzy numbers (IFNs) to fuzzify the historical time series data. Further intuitionistic fuzzy logical relationship groups are defined and also provide a forecasted value and lies in an interval and is more appropriate rather than a crisp value. Furthermore, the proposed method has been implemented on the historical student enrollments data of University of Alabama and obtains the forecasted values which have been compared with the existing methods to show its superiority. The suitability of the proposed model has also been examined to forecast the movement of share market price of State Bank of India (SBI) at Bombay Stock Exchange (BSE). The results of the comparison of MSE and MAPE indicate that the proposed method produces more accurate forecasting results.

Pricing dynamics between airline groups with dual-brand services: The case of the Australian domestic market

The Australian aviation industry achieved substantial growth after the abolition of the “two-airline-policy” in 1990. With Virgin’s purchase of Tiger Airways, a new duopoly between two airlines groups, each consisting of a full service airline (FSA) and a low cost carrier (LCC), emerged in the domestic market. In this study, we analyze the pricing dynamics among the four airlines of the duopoly groups, using panel data of online fares on the four most densely travelled routes in the domestic market. Our empirical results suggest that market segmentation allows the FSAs to charge significantly higher prices than the LCCs. Still, there is clear evidence of competition within and across the market segments, and the airlines’ pricing responses are asymmetric. Virgin’s price responses to Qantas and Jetstar are moderate. In comparison, more than one third of Qantas’s fare changes and less than half of Jetstar’s fare changes are in response to Virgin’s fare adjustments in the previous period. Despite Qantas and Jetstar’s large market share, after lengthy and costly price wars in previous years, the Qantas group still responds to Virgin as if competing with an entrant. All four carriers adopt revenue management practices, but the pricing of Qantas and Jetstar does not seem to be coordinated. Our study identifies a complex competition pattern between airline groups offering dual-brand services, and suggests that the Australian domestic market has not reached a stable equilibrium.

Effect of Firm Specific and Macroeconomic Variables on Share Price Determination of Commercial Banks in Nepal

This paper examines the effect of firm specific and macro-economic variable on share price determination of commercial banks in Nepal over a period from 2009/10 to 2015/16. Share price (market price and stock return) is dependent variable whereas, firm size, return on assets, earning per share, dividend per share, gross domestic product, interest rate , and inflation rate are independent variables. Data are collected from annual report of the respective banks, NRB website, NEPSE, and SEBON. The study is based on 105 observation from 15 commercial banks of Nepal. The regression models are estimated to test the significant and importance of effect of firm specific and macroeconomic variable on share price determinant of Nepalese commercial banks. The result shows that there is positive correlation between market price of share with firm size, earning per share, return on assets, dividend per share, gross domestic, product, inflation whereas, negatively correlated to interest rate. Similarly, stock return is positively related to firm size, earning per share dividend per share, gross domestic product, and inflation, whereas negatively relate to return on assets, inflation, and interest rate. The result shows that beta coefficient for earning per share, dividend per share, gross domestic product, and inflation on market price of share whereas, negative for firm size, return on assets and interest rate. Likewise, beta coefficient is positive for dividend per share, earning per share, gross domestic product, and interest rate whereas, negative for firm size, return on assets, and inflation.

REDEMPTION RIGHTS FOR ACQUISITION OF NEW EMISSION AS A MEANS OF CORPORATE MANAGEMENT

Introduction. There are cause-effect persistent relationships between the quality of corporate management of an enterprise and its ability to attract investments. Among the wide range of issues related to the definition of "corporate management", the least investigated is the means of redemption rights to purchase shares of new emission. The level of protection of investors’ rights depends directly on its capacity, and hence the investment attractiveness of individual enterprises and the capital market of the country. Purpose of the study is to substantiate the recommendations on the practical implementation of the redemption rights of shareholders to purchase shares of new emission. Methods. In order to create the conditions for the practical implementation of the redemption rights, the model of calculating the domestic fair value of redemption rights is substantiated. This model takes into account the following factors: market share price before additional emission, emission rate, emission and cash flows ratio which will be generated by the company owing to the emission results. It is a model for determining the minimum amount of additional cash flow, which should be generated by a company that carries out an additional share emission in order to preserve the market rate that took place before the increaseof the statutory capital, is offered. Results. The work emphasizes that redemption rights (for the purchase of shares) is a means against blurring the value share of individual shareholders, its devaluation and compensation of owners’ losses. The financial aspects of implementation of redemption rights, in particular, their price, fair value and influential factors are analyzed. If the share emission is low, the "blurring" of the market value of the shares in circulation and losses of shareholders will be high. The task of determining the fair value of redemption rights in the article was solved on the basis of comparing the market value of the company to the increase of the statutory capital and potential market capitalization after the additional share emission. Conclusions. It is shown that as a result of implementation of redemption rights, shareholders do not receive real additional income and increase of their assets. To compensate the shareholders losses related to the additional share emission, the necessity to permit the trade of redemption rights and the tax exemption from the sales revenue of these rights is substantiated.

Relationships between Inflation Rate and Market Value per Share of Commercial Banks: Evidence from Bangladesh

The market value per share of financial institutions depends on a range of internal and macroeconomic variables. Inflation rate of a country is one of the macroeconomic variables that substantially influence the market price of share of the financial organizations. This study aimed at determining the relationship between inflation and market value per share of commercial banks in Bangladesh. Researchers used market value per share of 10 commercial banks and inflation rate for the period 2011 to 2015 as secondary data. A number of statistical tools (average, percentage change, median, maximum, minimum, standard deviation, coefficient of correlation and coefficient of determination) were used to find out the results. It was found that inflation of a country had significant positive effect on the market value per share of the selected commercial banks. JEL Classification Code: G 21

Dividend Policy and Share Price Fluctuations of Sampled Quoted Nigerian Companies

This focus of the study was to find out the impact of dividend policy on market price of shares on sampled quoted companies in Nigeria. Secondary data were sourced from the audited annual reports of ten selected companies, the prices from Central Security Clearing System‘s portal (CSCS) and annual returns on Nigeria Stock Exchange All Share Index-NSEASI from Proshareng.com for the period of 2011 to 2015. The data were analysed by the use of ols regression technique to find the level of significance of the variables: dividend payout ratio earnings per share and economy status on share price of sampled companies in Nigeria. The findings revealed that dividend payout ratio and earnings per share have significant effects on share price of equity while the economy status has insignificant effect on the share price of equity. The study also showed that earnings per share has a higher effect than dividend payout ratio and economy status of the country on market price of share of sampled companies in Nigeria during the period under review. It is recommended that in this recession period, risk averse investors should focus on high dividend payout ratio equities ,however they should be careful of these stocks because it means the companies may not have enough retained earnings to invest in profitable investments.

An Empirical Research on Shinepukur Holdings Ltd: Strategy, Accounting, Ratio, Sensitivity and Prospective Analysis

This paper examines how Shinepukur holdings ltd is going well or not? The major operations of the company are related to the development of lands and building apartments. Its operating performance is now going down because of the inefficient strategy formulation. The company cannot use its resources in full swings. Real estate customers purchase land or apartments on credit. Sometimes they fail to pay with in due time. Identifying the projects which customers will pay their credit within short term is important in this business. This policy is not followed by shinepukur. Moreover Managers had taken some unprofitable projects which brought negative return for the company. The company’s core businesses are Apartment project and Land project. Competition in real estate industry is increasing day by day. After du-point analysis, we have found that company’s performance is very much sensitive to its profit margin. In the valuation part we have found the company’s present of equity per share is negative where share market price is 28.50 taka in the last trading day of 2015. This figure indicates market price of share is overvalued. Investors should not buy this company’s share. In prospectus analysis we have made forecast for next three years income statement, balance sheet, cash flow statement on the basis of common size statement analysis.

Model Penentu Market Price of Share Pada Sektor Manufaktur Yang Terdaftar di BEI

The purpose of this study to investigate the factor that influence Market Price of Share in Manufacture companies. The second objective is to identify influence independent variable to dependent variable.
 Data for this study is the financial ratios calculated from the financial statement of Manufacture in Indonesia Stock Exchange over the five year period 2010 until 2014. The number of sample with purposive sampling method are 8 company as part of 119 Manufacture company. This study also measured by multiple linear regression method with software E-views 7.2.
 The result show that there is significant relationship between Dividend per Share, Earnings per Share, and Book Value also there is not a significant relationship between Dividend Payout Ratio, Return on Networth, Price Earnings Ratio and Size with Market Price of Share.
 Keyword: Market Price of Share, Dividend per Share, Earnings per Share, Book Value, Dividend Payout Ratio, Return on Networth, Price Earnings Ratio, and Size

Bank Valuation Models – A Comparative Analysis

The Bank valuation model was designed based on objective to fit the most applicable valuation model for banks to help in forecasting bank specific decision and also forecast the market value of share. First study the accuracy and explanatory value of the value estimates from the residual income model compared to the estimates from the Relative valuation model for banks. Empirical evidence suggests that the residual income model is superior to the relative valuation model when it comes to measuring bank shareholder value. The results of the comparison suggest that value estimates from the residual income model are even more reliable for banks. On this basis, we conclude that residual income is an appropriate value estimate for the shareholder value of banks. There was positive significant relationship identified between the intrinsic value of bank share determined by RIV model and Market price of share in all the cases by performing correlation and Regression study. This study will be useful for forecasting the possible changes in market price. It was identified that determinants vary as per the working and regulatory condition as determinants impacting private, public and Indian banks were not similar so panel regression model will vary for each cases. It was also identified that Public Sector Bank in India shows more positive progressive trend as compared to private Sector Bank even after the fact that public Sector Bank has higher regulatory restriction as compared to Private Sector banks. This research will serve very useful for the banker to plan and take decision regarding shareholder value creation by implementing proper valuation model for getting appropriate value estimate and also adopting proper internal performance measure for having accurate and regular check on the process of value creation.

TESTING THE DIRECT AND INDIRECT EFFECT OF CAPITAL STRUCTURE ON THE STOCK PRICE OF THE SELECT INDIAN PUBLIC SECTOR BANKS

Market Value of Share of a company is determined by various factors. So many studies were conducted in finding the determinants of share price. Some of the studies found that Capital Structure is a determinant of the market price of the share and some of the studies found that Earning per Share is a determinant of the market price of the share. Even some studies proved that Capital Structure is also determining the Earning per Share. With this ideology an attempt was made in this study by using Structural equation modeling to see how for the Capital Structure of the firm has got a direct and indirect effect over the Market value of share. Debt to Total Assets, Equity to Total Assets, Coverage Ratio, Earning per share and Market price of share of eleven Indian public sector banks were taken for the study for five years from March 2013 to March 2017.

The elements of financial structure and their impact on the market value of the firm economic. Case study of the debts of Saidal Group ( 1999-2014)

This study aimed at clarifying the impact of the financial structure of theinstitution on its market value (market price per share). The approaches andtheories differed in the interpretation of the relationship of the financialstructure to the value of the market institution. There are supporters whosupported the impact of the financial structure on the market value of theinstitution. This study found that the financial structure could be used toexplain the changes in the market price of the industrial share of theindustrial compound by 40.09%. It also revealed an inverse relationbetween the ratio of total debts to private equity and market price of theshare the complex.