Net Stock Research Articles

Conjoint analysis of nitrogen and phosphorus metabolism in urban system: A case study of Dar es Salaam, Tanzania

AbstractNitrogen (N) and phosphorus (P) metabolism is becoming an increasingly complex process during urbanization due to increasing rates of consumption and emission worldwide. Understanding the urban N and P metabolism helps identifying production capacity, consumption demand, and the impact of N and P emissions on the environment, providing a scientific basis for decision‐making in sustainable utilization of N and P resources. Quantifying and mapping the source, path, and sinks of N and P in an urban system is the premise of controlling emissions. In this paper, we used the substance flow analysis (SFA) method to describe the N and P metabolism processes in the urban system of Dar es Salaam (Tanzania) in 2017, and used the scenario‐based analysis method to understand the impact of different N and P metabolisms on potentially recoverable N and P sources by 2030. The results showed that the urban system of Dar es Salaam receives a total input flow of 28,101.8 tN/year and 3,379 tP/year, with a total output flow of 18,859.6 tN/year and 1,849.3 tP/year with net stock changes of 9,242.2 t/year for N and 1,529.7 t/year for P, respectively. We noticed that increased human activities largely represented the city's waste released after the household consumption, and would become the main causes of N and P emissions. In addition to this, 59.38%, 31.25%, and 9.38% of N flow quantification quality were at high, medium, and low levels, respectively, while 74.07%, 11.11%, and 14.81% of P flow quantification quality were at high, medium, and low levels, respectively. Our results suggest that implementing integrated nutrient management measures, such as changes in people's diets and the use of washing products, and improved management and technologies of manure, sewage, and landfill leachate treatment, would be the most effective approach to resolve the urban nutrient emissions in Dar es Salaam.

Macro fundamentals and the resurgence of the Feldstein–Horioka puzzle in Europe

This paper discusses the resurgence of the Feldstein–Horioka puzzle after the global financial crisis within the European space. Revisiting the theory of intertemporal choice, this paper suggests that the deterioration of macroeconomic fundamentals that favor capital flows from richer to poorer economies can lead investment and savings to correlate across countries even without frictions to capital mobility. I test this hypothesis against a data set of 12 European economies spanning since the inception of the Maastricht treaty and ending immediately before the start of the Covid-19 pandemic. I find that the investment-savings correlation is generally low both across and within open economies, aligning with the theoretical stylized fact. However, this can be jeopardized when low-income economies accumulate large net stocks of foreign liabilities coupled with sluggish prospects for productivity growth. Ultimately, if investment and savings are not managed in line with macro fundamentals, foreign investors eventually impose a premium on new liabilities, raising the cost of financing investment with foreign funds and leading the correlation between investment and savings to rise both across and within countries.

The role of the net purchase of stocks by foreign investors in boosting stock returns: Evidence from the Indonesian stock market

Low reporting quality, as demonstrated by lower earnings informativeness, can exacerbate the information asymmetry gap, particularly in emerging markets. Although recent research shows that aggregate earnings can predict future economic growth, accruals, an important earnings component, are more likely to be manipulated in less sophisticated markets. Using data from Indonesia, we examine the impact of foreign stock investors' activities and accruals on stock returns. Our findings show that foreign stock investors' optimism, as measured by their net purchases of stocks, leads to higher excess returns. Foreign investors improve the quality of financial information. They provide benefits through two channels. First, foreign investors’ trading value significantly impacts stock prices in a thin market. Second, net stock purchases by foreign investors can help reduce information asymmetry. Our results contribute to the investment strategy by examining the relationship between sentiment generated by foreign investors and stock returns.

M&A performance commitments and insider trading: ‘Listen to their words’ or ‘watch their actions’?

Whether performance commitment will become a tool for insiders to pursue self-interest through cashing out at a high price is an important issue worthy of research. While academics generally agree that performance commitments bring positive synergies to both sides of M&A, some scholars have begun to focus on the reasons and economic consequences behind the failure of performance commitments recently. Using data from 850 A-share listed firms in China over the period from 2008 to 2019, we examine the relationship between performance commitments and insider trading by the acquirer. The results show that the greater the degree of performance commitments, the larger the scale of stock sales by the acquirer's executives and the smaller the scale of their net stock purchases after the announcement of M&A, which exhibits heterogeneity across different corporate property rights and performance commitment characteristics. The above findings suggest that high performance commitment is a tool for insiders to “speculation”. This paper innovatively reveals the self-interested motives and negative economic consequences of signing high performance commitments from the view of insider trading, and it provides a new perspective for investors to recognize the investment risks.

Export capacity and capital stock augmentation through imports: Evidence from Sub‐Saharan African countries

AbstractThis paper investigates the capital goods imports of Sub‐Saharan African (SSA) countries from 2002 to 2017. The composition of capital goods imports has become less diverse over time in more than half of the countries studied. Colonial ties no longer determine the sourcing of capital goods as China is now the top source. Trade gravity regressions using the Poisson pseudo‐maximum‐likelihood estimator show that bilateral exports of non‐primary products by SSA countries and their low‐income peers are associated with increased net stock of imported general‐purpose capital goods. Additionally, there is evidence that the net stock of some types of imported equipment and machinery is associated with increased non‐primary exports of items utilising these capital goods with elasticity estimates ranging from 0.10 to 1.10. Thus, there is some form of economic restructuring in the region gleaned from increased exports of non‐primary products brought about by capital stock augmentation through imports.

미국의 통화정책과 국내 주식 투자자의 반응

Purpose - The primary objective of this article is to investigate the impact of U.S. monetary policy on institutional / individual / foreign investor reactions in the Korean stock market.
 Design/methodology/approach - This study employs a high frequency event study methodology to identify U.S. monetary policy shocks and quantify the impact of identified shocks on investor reactions. The dependent variable in the regression model is net stock purchase, while the explanatory variables are U.S. monetary policy shocks. The model is estimated for the period 2000-2019, including 156 FOMC meetings.
 Findings - Foreign investors immediately sell stocks in response to contractionary U.S. monetary shocks. They do not, however, react to anticipated changes in monetary policy rates, confirming the rationality of foreign investors. Individual investors demonstrate the opposite response, indicating that a non-trivial proportion of individual investors are irrational.
 Research implications or Originality - This study adds to the current literature on the effect of U.S. monetary policy on the Korean stock market. This study demonstrates a heterogeneous response to U.S. monetary policy shocks, validating the rational investment behavior of foreign investors, while individual investors exhibit a certain degree of irrationality. Methodologically, this study adds to the literature by quantifying the impact of U.S. monetary policy employing a sharper identification method allowing a simple and consistent estimation.

Net Transmitter of Stock Market Volatility and Safe Haven for Portfolio Investors in the Asian Dragons

The return and volatility spillover effects on Asian Dragons were investigated in this study. Yahoo Finance provided the monthly statistics (from August 1997 to December 2020). This study used a generalized autoregressive conditional heteroskedasticity–autoregressive moving average (GARCH–ARMA) model. The results showed that return spillover effects were observed in unidirectional relationships, but volatility spillover effects were shown in both unidirectional and bidirectional connections. The TSEC Weighted Index (TWII) and the Hang Seng Index (HSI) were net stock market return transmitters to other markets, whereas the Straits Times Index (STI) and the Korean Composite Stock Price Indices (KOSPI) were net receivers. Simultaneously, the STI was a significant net transmitter of stock market volatility to other markets, according to research. As a result, the KOSPI has become a safe haven for portfolio investors. Portfolio managers and overseas investors who are reviewing investment and asset allocation decisions should be aware of these facts.

Forecasting Stock Price Trends by Analyzing Economic Reports With Analyst Profiles.

This article proposes a methodology to forecast the movements of analysts' estimated net income and stock prices using analyst profiles. Our methodology is based on applying natural language processing and neural networks in the context of analyst reports. First, we apply the proposed method to extract opinion sentences from the analyst report while classifying the remaining parts as non-opinion sentences. Then, we employ the proposed method to forecast the movements of analysts' estimated net income and stock price by inputting the opinion and non-opinion sentences into separate neural networks. In addition to analyst reports, we input analyst profiles to the networks. As analyst profiles, we used the name of an analyst, the securities company to which the analyst belongs, the sector which the analyst covers, and the analyst ranking. Consequently, we obtain an indication that the analyst profile effectively improves the model forecasts. However, classifying analyst reports into opinion and non-opinion sentences is insignificant for the forecasts.

Change in the Net Primary Production and Carbon Stock Recovery in Fallow Soils

Change in the Net Primary Production and Carbon Stock Recovery in Fallow Soils

Impacts of Climate Change on Blue Carbon Stocks and Fluxes in Mangrove Forests

Mangroves store blue carbon (693 Mg CORG ha−1) disproportionate to their small area, mainly (74%) in deep soil horizons. Global stock estimates for mangroves (5.23–8.63 Pg CORG) are equivalent to 15–24% of those in the tropical coastal ocean. Carbon burial in mangrove soils averages 184 g CORG m−2 a−1 with global estimates (9.6–15.8 Tg CORG a−1) reflecting their importance in carbon sequestration. Extreme weather events result in carbon stock losses and declines in carbon cycling and export. Increased frequency and ferocity of storms result in increasingly negative responses with increasing strength. Increasing temperatures result in increases in carbon stocks and cycling up to a critical threshold, while positive/negative responses will likely result from increases/decreases in rainfall. Forest responses to sea-level rise (SLR) and rising CO2 are species- and site-specific and complex due to interactive effects with other drivers (e.g., temperature, salinity). The SLR critical threshold is ≈ 6 mm a−1 indicating survival only under very low-low CO2 emissions scenarios. Under low coastal squeeze, landward migration could result in sequestration and CO2 losses of 1.5 and −1.1 Pg C with net stock gains and losses (−0.3 to +0.5 Pg C) and CO2 losses (−3.4 Pg) under high coastal squeeze.

Looking for the Economy‐Wide Effects of Stock Market Short‐Termism

To investigate the widespread claim that stock market “short‐termism” is a major drag on U.S. corporate investment and the broad economy, the author examines the evidence on long‐run trends in corporate capital investment, buybacks, and R&D. As critics of market‐driven corporate short‐termism have pointed out, U.S. corporate investment in capital equipment and other tangible assets has been falling steadily since the late 1970s and buybacks are rising. But if the story of economy‐wide decline due to short‐termism were valid, we would expect to see the following: (1) investment spending in the United States declining faster than in Europe and Japan, where large companies depend less on stock markets for capital and shareholder activists are less influential; (2) cash from all the large share buybacks bleeding out from the U.S. corporate sector; and (3) economy‐wide declines in corporate R&D spending.What the author reports, however, is that real U.S. corporate R&D spending, has been steadily rising since the 1970s and rising faster than the economy is growing. And even as corporate distributions of capital through dividends and buybacks have also been rising sharply for decades, corporate cash holdings (as a percentage of total assets), are at near record‐high levels. The explanation for such high cash holdings together with record‐high payouts—and perhaps the author's most striking finding—is that such distributions, which tend to be concentrated among larger, mature companies, are closely matched by new corporate borrowings and stock issuance—the latter often by smaller (non‐S&P 500) companies. What's more, while there's an outflow of cash from the S&P 500 from net buybacks and borrowing, there's a substantial cash inflow into the non‐S&P 500 from net stock issuances and borrowing.Finally, the fact that capital spending by European and Japanese companies—which face neither U.S.‐style quarterly‐oriented stock markets nor aggressive activist investors—has been falling more rapidly than in American companies suggests that U.S. capital markets are not a major reason for declining capital investment. And, while there's good reason for further R&D support, the author suggests in closing, reversing the U.S. government's sharply declining spending on R&D since the global financial crisis is the low‐hanging R&D fruit that should be bolstered first.

Phenotypic plasticity in Barilius vagra (Hamilton, 1822) (Teleostei: Danionidae) from two geographically distinct river basins of Indian Himalaya

Truss-based morphometric analysis was used to examine phenotypic plasticity of Barilius vagra (Hamilton, 1822) inhabiting the tributaries of the Alaknanda (Ganga River basin) and Chenab (Indus River basin), two geographically distinct river basins in the Indian Himalaya. Fourteen landmarks were connected to generate a truss network of 90 parameters on the body of fish. Eighty morphometric traits out of ninety morphometric measurements explained statistically significant difference among six sampling locations of Barilius vagra from streams in the Alaknanda and Chenab basins. Discriminant function analysis revealed 82% of Barilius vagra specimens originally classified into their own groups. 95% of the variance was explained by 13 principal components. Morphometric characters (1–6, 1–13, 2–5, 2–6, 2–14, 3–6, 4–6, 4–14, 6–12, 7–8, 7–9, 10–11, and 13–14) contributed greatly in differentiation of B. vagra populations from different river basins. The Alaknanda basin reflected some mixing within populations, which may be due to common environmental conditions and fish migration in these streams. This study will be helpful in framing site-specific conservation and management strategies, such as net mesh size selection, avoiding overexploitation, stock augmentation and food availability for different fish populations.

Prospects for a saturation of humanity’s resource use? An analysis of material stocks and flows in nine world regions from 1900 to 2035

Material stocks in infrastructure, buildings and machinery shape current and future resource use and emissions. Analyses of specific countries and selected materials suggest that material stocks might saturate, which would be important for a more sustainable social metabolism. However, it is unclear to what extent the evidence holds for a wider range of stocks and flows, as well as for world regions or globally.We present an inflow-driven dynamic stock-flow model for 14 bulk materials, end-of-life outflows, recycling, and waste flows for nine world regions from 1900 to 2015, extended with trend scenarios until 2035. Material stocks are growing in all regions and show little signs of saturation yet. In 2015, China used half of global stock-building materials, overtook everyone in stock size around 2012 and grows its stock at ∼8%/year. The Industrialized regions, including the Former Soviet Union, are slowly expanding their high stock levels at ∼1%/year. Stocks in all other regions, inhabited by 60% of the world population, grow at ∼3–5%/year. Inequalities in per capita stocks between regions are large. Trend scenarios suggest potential absolute or per capita stock saturations in some of the industrialized regions, while all other regions are expected to continue high stock growth.Accumulated stocks drive future end-of-life materials and substantial maintenance and replacement requirements. Growing material stocks hamper a potential stabilization or reduction of resource use. Low stock levels in most world regions suggest a crucial window of opportunity for avoiding resource-intensive stock development. In the industrialized regions and especially China, stabilising and reducing resource use requires halting net stock expansion and transforming existing stocks. More materials- and energy-efficient and long-lived stocks which deliver high quality services, and improved reuse, repair and recycling of increasing end-of-life materials to close loops and actually replace virgin resources, are crucial for a more sustainable social metabolism.

Meta-Prediction Models for Bullwhip Effect Prediction of a Supply Chain Using Regression Analysis

In this study, the main factors that can cause the bullwhip effect and stock amplification are investigated using a simulation-based optimization approach and regression analysis. A two-echelon supply chain with uncertain customer demand and delivery lead time operating with the periodic-review reorder cycle policy is studied. The parameters of smoothing inventory replenishment and forecasting methods are required. These parameters are optimized in terms of minimizing the Total Stage Variance Ratios (TSVRs) of both echelons. The results show that even though all factors of interest have an impact on the bullwhip effect, using smoothing proportional controllers can reduce TSVRs (the sum of the order varaince ratio and net stock amplification). The meta-prediction models can effectively help predict the amount of the bullwhip effect of a chain under various situations with an average MAPE of less than 11%. The results can assist decision makers in the management of a supply chain to realize, benchmark with the optimal results, and reduce the TSVRs under an uncertain environment.

Quality grading of returns and the dynamics of remanufacturing

We consider a hybrid manufacturing/remanufacturing system where the returned products (cores) are classified into different quality grades. Each grade requires different remanufacturing operations and thus lead times. We examine the implications of the quality-grading scheme on the dynamic behavior of closed-loop supply chains, benchmarking this against a typical system where all the returns undergo the same remanufacturing process. Through control engineering techniques, we evaluate the Bullwhip and inventory performance of the supply chain by observing the step response of the orders and net stocks (the shock lens), analyzing the frequency behavior of these signals (the filter lens), and measuring their dynamics due to stochastic demand (the variance lens). Subsequently, we discuss the operational savings and additional costs derived from quality grading. We find that the pre-sorting mechanism allows for smoothing the supply chain operations; however, its impact on customer satisfaction is ambivalent. Indeed, we observe that the documented ‘lead-time paradox’ of the remanufacturing process in hybrid systems results here in a ‘quality paradox’: lower quality returns may increase the performance of inventories. This affects particularly low-frequency demands. Importantly, we analytically derive the optimal setting of the closed-loop pipeline estimation in order-up-to policies for avoiding long-term inventory drifts. This analysis reveals key potential benefits of information transparency for improving the operational performance, and thus the environmental and economic sustainability, of closed-loop supply chains.

PENGARUH LABA BERSIH TERHADAP DIVIDEN SERTA DAMPAKNYA PADA HARGA SAHAM PERUSAHAAN SEKTOR AGRIKULTUR YANG TERDAFTAR PADA BURSA EFEK INDONESIA

This study aims to determine how the effect of net income on stock prices directly and indirectly through the dividend variable in companies listed on the Indonesia Stock Exchange. The population in this study were companies listed on the Indonesia Stock Exchange for the period 2013 to 2018. After selecting the population according to the purposive sampling method, there were 5 companies in the agricultural sector used as samples. This research is an associative study with a quantitative approach. The study used a path analysis model using linear regression analysis techniques by first doing classic assumption tests such as normality test, heterocedasticity, multicollinearity and autocorrelation. The results showed that net income has a positive and significant effect on dividends, dividends have a positive but not significant effect on stock prices, net income has a positive and significant effect on stock prices, the direct effect of net income on stock prices is 0.613, the indirect effect of net income on prices shares through dividends of 0.224 and the effect of total net income on stock prices of 0.837.Keywords: net income, dividends, stock prices and path analysis

Investor behavior, stock returns and CDS spreads: evidence from foreign and domestic investors in Korea

PurposeThis study investigates the dynamic relationships among trading behaviors of different investor groups (foreigners, domestic institutions and domestic individuals), stock returns and sovereign CDS (Credit Default Swap) spreads in Korea.Design/methodology/approachWe employ the VAR (Vector autoregression) model to examine the dynamic relationships between CDS spread changes, stock returns and investors' behavior in the stock market.FindingsThe CDS spread change (stock return) declines (rises) in response to shocks to net foreign flows into the stock market on the same day. Foreigners buy stocks more intensely one day after an increase in the stock return, but they do not respond to CDS spread changes. Domestic individuals trade in the opposite direction of foreigners in response to shocks to both stock returns and CDS spread changes on the same day. Positive net stock purchases of domestic institutions (individuals) predict positive (negative) stock returns and negative (positive) CDS spread changes next day.Originality/valueThis study extends prior studies by examining how different investor groups' trading behaviors in the stock market are associated with not only the stock market but also a closely related market (CDS market). Prior empirical studies on the relation between the stock and CDS markets do not pay attention to possible heterogeneity in trading behavior across different types of investors in the stock market.

Firm efficiency and the investment anomalies

PurposeThe purpose of this paper is to investigate whether firm efficiency can explain the investment anomaly. The investment anomaly refers to the persistent negative relation between firm growth and future risk-adjusted returns. When firms grow by investing heavily, the market often takes the growth as positive news initially but will correct prices downward subsequently if the firms lack skills to materialize value from the investments.Design/methodology/approachThe author conducts portfolio sorting and Fama–Macbeth regression analyses with three different measures of efficiency and four variables for firm investment: net stock issuance (NSI), total asset growth (dAA), fixed asset and inventory growth (IA) and net operating assets (NOA).FindingsThe author finds that the NSI, dAA and IA anomalies are concentrated in firms with low overall efficiency. In addition, there is strong evidence that manager-driven efficiency is closely related to the NSI anomaly and limited evidence that NOA efficiency plays a role in the NSI, IA and NOA anomalies.Originality/valueThe research contributes to the literature by employing advanced efficiency measures developed by Demerjian et al. (2012) to resolve extant asset pricing puzzles. Also, the findings offer important implications for corporate managers and investors by demonstrating the effect of firm investments and efficiency on future profitability of stocks.

Analysis of Variance Amplification and Service Level in a Supply Chain with Correlated Demand

The bullwhip effect reflects the variance amplification of demand as they are moving upstream in a supply chain, and leading to the distortion of demand information that hinders supply chain performance sustainability. Extensive research has been undertaken to model, measure, and analyze the bullwhip effect while assuming stationary independent and identically distributed (i.i.d) demand, employing the classical order-up-to (OUT) policy and allowing return orders. On the contrary, correlated demand where a period’s demand is related to previous periods’ demands is evident in several real-life situations, such as demand patterns that exhibit trends or seasonality. This paper assumes correlated demand and aims to investigate the order variance ratio (OVR), net stock amplification ratio (NSA), and average fill rate/service level (AFR). Moreover, the impact of correlated demand on the supply chain performance under various operational parameters, such as lead-time, forecasting parameter, and ordering policy parameters, is analyzed. A simulation modeling approach is adopted to analyze the response of a single-echelon supply chain model that restricts return orders and faces a first order autoregressive demand process AR(1). A generalized order-up-to policy that allows order smoothing through the proper tuning of its smoothing parameters is applied. The characterization results confirm that the correlated demand affects the three performance measures and interacts with the operating conditions. The results also indicate that the generalized OUT inventory policy should be adopted with the correlated demand, as its smoothing parameters can be adapted to utilize the demand characteristics such that OVR and NSA can be reduced without affecting the service level (AFR), implying sustainable supply chain operations. Furthermore, the results of a factorial design have confirmed that the ordering policy parameters and their interactions have the largest impact on the three performance measures. Based on the above characterization, the paper provides management with means to sustain good performance of a supply chain whenever a correlated demand pattern is realized through selecting the control parameters that decrease the bullwhip effect.

Oil price shocks, investor sentiment, and asset pricing anomalies in the oil and gas industry

This paper documents that stocks are not efficiently priced in the oil and gas industry. We find significant cross-sectional effects on stock returns from various firm characteristics in the oil and gas industry. Specifically, 13 out of 15 prominent capital market anomalies are robust in the oil and gas industry. Investor sentiment has significantly positive impact on 4 anomalies: composite equity issues, investment to assets, net stock issues, and value effect. Among the three oil shocks, we find that aggregate demand shocks have significantly impact on 6 anomalies: composite equity issues, financial distress, net stock issues, O-SCORE, return on assets, and idiosyncratic volatility. Our results are consistent with the view that high arbitrage costs and risks have significant deterring effects on arbitrage in the oil and gas industry. Our findings also have practical investment and policy implications for investors, firm managers, and policy makers alike.