Price Performance Research Articles

The Role of Good Corporate Governance in Stock Price Determination: Evidence from BRI

Corporate governance refers to the mechanisms and processes that direct and control a company to ensure its operations are efficient and aligned with its objectives. In the context of BRI Bank, the corporate lending program poses a significant risk to its financial stability, especially amidst the ongoing economic crisis. The deterioration in the quality of non-performing loans (NPLs) has implications for evaluating asset and debt risk quality. This study employs a quantitative research method to measure data and generalize the results from a sample to the broader population. The sample consists of BRI Bank companies for the period 2017–2023. A census technique is applied, and the data is analyzed using panel data analysis to assess the relationship between corporate governance and stock prices. The findings reveal that good corporate governance has a significant effect on stock prices when considered collectively. However, when the corporate governance variable is examined individually, it does not show a significant impact on stock prices. These results suggest that while good corporate governance contributes to stock price performance in a combined context, its isolated effect is not as pronounced. The findings highlight the importance of comprehensive governance practices in influencing financial outcomes, particularly in the face of economic challenges.

Stock Price Performance of a Portfolio of Japanese Ventures After IPO

Stock Price Performance of a Portfolio of Japanese Ventures After IPO

Is Information Risk Priced? New Evidence from Outer Space

Satellite images of the parking lots of U.S. retail firms provide information about the firms’ future earnings, and the limited access to these images produces information asymmetry between sophisticated and unsophisticated investors. We construct a cloud-based information risk (CIR) measure to capture this satellite information risk and investigate its asset pricing performance. We find that CIR positively predicts future stock returns of retail firms in the cross-section and that the predictability cannot be explained by weather reasons. We provide evidence that CIR indeed captures the information asymmetry among investors. The profitability of short selling is more pronounced on clear days. The return predictability of CIR is more pronounced in preannouncement periods. During cloudy days, parking lot traffic data from satellite images are harder to obtain, and the retail store sales estimated using parking lot data are noisier. We further show that high CIR is associated with low liquidity and that the decrease in liquidity purchases is greater than the decrease in liquidity sales. Our empirical analyses suggest that information asymmetry is priced and that CIR affects equity premiums through the liquidity channel, which are consistent with the theoretical predictions from a noisy rational expectations equilibrium model under imperfect competition. This paper was accepted by Kay Giesecke, finance. Funding: S. Wang acknowledges financial support from the National Natural Science Foundation of China [Grants 72373110 and 71902140] and Fundamental Research Funds for the Central Universities in China. Y. Wang acknowledges financial support from the National Natural Science Foundation of China [Grants 72342003 and 72071114]. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.00713 .

A Critical Analysis of Associated British Foods PLC Shareholder Wealth Creation in the Five-Year Period From 2017 to 2021

This study examines Associated British Foods PLC's (ABF) performance in maximizing shareholder wealth over a five-year period from 2017 to 2021. Utilizing a mixed-method approach combining quantitative financial analysis with qualitative assessment of strategic factors, the research investigates ABF's share price performance, dividend policies, and key financial ratios. The study also compares ABF's performance with its industry peer, J Sainsbury PLC, to provide context within the competitive landscape. Findings reveal that despite initial underperformance against the FTSE 350 index, ABF demonstrated significant recovery, particularly in 2021/22, with improved share price performance and dividend payouts. The company consistently maintained higher net profit margins and lower debt ratios compared to its competitor, indicating effective cost management and a conservative financial structure. ABF's diversified portfolio and focus on innovation and sustainability appear to have contributed to its resilience and ability to create shareholder value. However, areas for improvement, such as asset utilization efficiency, were identified. This research contributes to the understanding of shareholder value creation strategies in the food and retail sectors, offering insights for both academics and practitioners in the field of corporate finance and strategic management.

Cash-rich seasoned equity issuers

We document that a substantial fraction of seasoned equity issuers have large pre-offering excess cash holdings. Cash-rich seasoned equity issuers are not easily reconcilable with the traditional pecking order theory on security choice. We examine the role of market timing, agency costs, precautionary motives, repatriation taxes, catering incentives, real options, and negative cash flows in driving seasoned equity offerings (SEOs) by cash-rich firms. We find that cash-rich equity issuers are more overvalued, use the SEO proceeds more opportunistically, and have a worse post-SEO operating and long-term stock price performance than non-cash-rich issuers. However, we do not detect differences in SEO announcement returns between cash-rich and non-cash-rich issuers, suggesting investors underweight firms’ excess cash holdings when assessing an SEO announcement. Overall, our findings predominantly support a market timing motive for SEOs by cash-rich issuers, while other explanations receive mixed to no support. Our results are robust to alternative empirical specifications.

Long Short Term Memory For Comparison Between Bank Syariah Indonesia And PT Bank Artos Indonesia Shares

The growth of the capital market in Indonesia has increased from year to year. Based on data from the Indonesia Central Securities Corporation (KSEI), there has been an increase in investor growth in the capital market by 2.34%, mutual funds by 2.44%, and shares by 1.34% until August 2024. The demographic of individual investors in the capital market is dominated by Generation Z who are younger than from 30 years as much as 55.07% in August 2024 (KSEI, 2024). Shares are a form of investment that has the potential for large profits but with small risks. One sector that Gen Z is interested in investing in is the financial sector. The aim of this research is to compare the share prices of Bank Syariah Indonesia and Bank PT Ban Artos Indonesia Tbk using a Neural Network with the Long Short Term Memory (LTSM) algorithm. The data used in this research is secondary data on BSI and PT Bank Artos Indonesia Tbk share prices taken from the investing.com website. The data period used is from 01 September 2021 – 01 September 2024. Based on the results of stock price forecasting using a Neural Network with the LTSM algorithm, RMSE value for both models is for BSI 75.0757 and 91.795 for PT. Bank Artos Indonesia Tbk. A comparison of the predicted share prices of PT Bank Arto Indonesia Tbk and BSI shows that BSI's share price performance is superior to that of PT Bank Arto Indonesia Tbk.

Incorporating Environmental, Social and Governance (ESG) Standards into Corporate Strategies for Success: A Case Study of a Group of American Companies

Success and growth are important goals to ensure survival, leadership, and sustainability of companies in the market. These goals require thoughtful strategic decisions that consider the company's impact on its environment and society besides balancing its profitability with social responsibility. This research aims to study how companies adopt ESG standards and incorporate them into strategic plans, and how that affects their stock performance in the financial market as criteria for companies' success. A sample of (45) USA companies adopting ESG standards was selected for this study. Simple linear regression analysis was used to show the relationship between ESG scores and indicators such as( Composite Rating, Relative Strength, and Earnings per Share Rating), according to the Investor's Business Daily (IBD) classification. The Composite Rating (Comp Rtg) reflects the overall performance level of the company’s stocks based on fundamental and technical analysis compared to other stocks in the same industry, the Relative Strength Rating (RS Rtg) compares the company's stock price performance against the overall market performance, while the Earnings Per Share Rating (EPS Rtg) reflects the profit that each share achieves, which significantly affects sustainable growth and success. The study results showed a significant impact of ESG on the Composite (Comp) Rating and a weak impact on the Relative Strength (RS) and Earnings Per Share (EPS) Ratings, which may be attributed to other market-related factors. These results can provide valuable insights for companies looking to improve their long-term value by investing in sustainable practices and attracting socially responsible investors, thus enhancing their performance and competitive advantage in the market.

Exploring the relationship between green bond pricing and ESG performance: a global analysis

Exploring the relationship between green bond pricing and ESG performance: a global analysis

The Influence of Performance Expectancy and Price Value on Favorable Behavioral Intentions Through Satisfaction With Viu Platform

The shift in video consumption from TV to online platforms is increasingly evident, especially among younger demographics who prefer streaming services such as Viu. The Viu platform's success is impacted by users' behavioural intention and perceived price value, which in turn influences user satisfaction and behavioural intention two essential characteristics Viu aims to attain and are critical to a technology's success. This research examines the impact of price value and performance expectancy on the behavioural intention and level of satisfaction of Viu users in Indonesia. This study employs quantitative data as its data type. This research is a causal associative study or cause and effect relationship. The data analysis approach used in this study is Structural Equation Modelling (SEM). Using quantitative methods and questionnaires as a medium for data collection, this study involved 206 respondents who are Viu users in Indonesia. The study's findings demonstrate the strong effect of price value and performance expectancy on satisfaction and favourable behavioural intentions. Satisfaction is a crucial mediator in strengthening the impact of price value and performance expectancy on favourable behavioural intentions.

Penerapan Model Indeks Tunggal dalam Menganalisis Portofolio Saham Optimal dan Peramalan Harga Saham Optimal Menggunakan Long Short-Term Memory

Investors in choosing stocks are not only on one type of stock, but can diversify. In this study, Blue Chip stocks were used which was carried out in two stages. The first stage is the Single Index Model to obtain an optimal stock portfolio. The second stage, the optimal share price results from the Single Index Model, namely Bank Mandiri (Persero) Tbk (BMRI), is followed by a forecasting process using Long Short-Term Memory (LSTM). The purpose of this study is to apply the Single Index Model to analyze the portfolio on Blue Chip stocks, forecast the selected optimal stock price in the next day, and evaluate the results of the selected optimal stock price forecasting. In the first stage, the Single Index Model uses data for the period from February 1, 2021 to February 1, 2024. The second stage, forecasting with LSTM uses data for the period from February 1, 2021 to February 29, 2024. The results of the first stage were obtained with optimal shares of 13 shares out of 41 Blue Chip shares. The most optimal stock was obtained by BMRI shares. The second stage is the use of BMRI shares with LSTM forecasting. The results of the second stage were obtained by forecasting the stock price performance with the best performance, so that it shows that the stock price performance on March 1, 2024 was obtained of IDR 6894,574. The accuracy of forecasting stock price performance with MAPE is 4.23%. It can be said that the forecast of stock price performance has very good accuracy.

Share Price Performance of Banking Issuers After Dividend Cum-Date

The primary objective of this analysis is to examine the fluctuations in stock prices post dividend distribution, and to evaluate how dividends affect stock performance over a one-year period following their allocation. Statistical analysis using the Paired Sample T-Test is employed to assess time series data in this study. The sample used consists of seven banking issuers, namely BBCA, BBNI, BBRI, BMRI, BTPN, MEGA, and BNGA. The study findings suggest that there is a slight decrease in the performance of banking stock prices the day following the dividend cumdate, though not enough to be considered significant. However, a noticeable difference in share price performance among banking issuers is evident between three months and a year. This was obtained after conducting a paired sample t-test with a result of 0.032. The contraction of stock price performance at cum date in some companies at a certain time, resulting in stock prices falling within a few days. Some of the decline in stock prices after the cum date occurred only a few days or even less than one month, but there were several companies that experienced a longer decline or tended to experience a negative trend for a long time.

Day-to-Day Road Pricing and Network Performance Analysis via Output Stability

Day-to-Day Road Pricing and Network Performance Analysis via Output Stability

An Introspection into IPO Pricing and Post-listing Performance of Indian Fintech Companies

The study examines the extent of initial public offering (IPO) underpricing of the Fintech companies and compares the same with the non-Fintech companies. The study also conducts post-listing performance of Fintech companies using listing gains, profitability margin, and valuation multiple over 3 years. The overall study, which spans from 2007 to 2022, indicates that the extent of IPO underpricing of Fintech companies is marginally higher than that of the non-Fintech companies. The results reveal that investors suffered a drip in the listing gains during the post-listing period. Further, during the post-listing phase, the Fintech companies have been able to post a continuous profit and also could sustain with a steady valuation multiple. The findings of the study postulate that the Fintech companies need to focus on implementing the right strategies to reduce the uncertainty and discontent among the investing community. Thus, the companies need to look forward to building up investor confidence in the upcoming days with improved performance. The significant implication of the study brings out that the policymakers need to contemplate framing norms for eradicating discontent and instilling confidence in the investors toward the Fintech companies over a longer time horizon of the primary market investment.

A Financial Analysis and Valuation of Apple Inc.

In 2024, Apple Inc., a globally recognized technology company, faced a series of challenges in China, resulting in a poor share price performance compared to the broader market. Despite strong financial indicators elsewhere, the company's latest quarterly report, released in February, revealed disappointing results in China. While Apple achieved sales growth in all regions except Greater China, where sales fell by nearly 13% from the same period last year. The impact of these events on Apple cannot be ignored. Apple's weaker-than-expected performance in China may suggest that the company's competitiveness in this key market is being challenged. This article provides an in-depth analysis of Apple's financial performance over the past three years, comparing it to its peers to draw conclusions about the risks associated with the company's growth. Through this examination, it aims to shed light on the potential implications of Apple's struggles in the Chinese market for its overall trajectory and competitiveness.

The effect of practicing transfer pricing and financial performance: Evidence from multinational corporations in the UAE

This research aimed to determine if the financial performance of multinational firms in the United Arab Emirates (UAE) and the appraisal of transfer pricing are significantly correlated. The firms’ financial statements from 2012 to 2022 were used as the primary source data. The research used the panel least squares regression approach to analyze the data acquired from multinational firms in the UAE to assess the research hypotheses. A correlational research methodology was employed to investigate the hypothesized association between transfer price assessment factors and financial performance. The results showed an insignificant effect for bonus mechanisms, tax expenses, and return on assets as measurements of financial performance, but tunneling incentives have an insignificant relationship with return on assets. As a result, the research suggests that multinational corporations in the UAE enhance tax expenses, tunneling, and bonus mechanisms to achieve a higher rate of return on assets. Additionally, UAE multinational firms should reassess their bonus mechanism for optimal financial performance. The study's limitations and findings offer several investigation opportunities related to transfer pricing practices in the UAE, and future researchers could make a comparative study on transfer pricing in different countries.

Determinants of information asymmetry in agri-food supply chains

PurposeWith its presence, which can create inefficiencies, uncertainties and risks, information asymmetry poses a significant challenge to successfully managing the agri-food supply chain (AFSC). Understanding the variables that influence information asymmetry is crucial for devising more effective strategies to mitigate it. This study, therefore, explores the variables that influence information asymmetry in the AFSC.Design/methodology/approachA qualitative analysis was conducted, relying on semi-structured interviews with 17 experts representing different actors in the AFSC (e.g. seed producers, retailers, etc.) in Germany. The collected data was analysed using the GABEK® method.FindingsThe study confirms that the influencing variables derived from the existing theory, such as price performance, digitalisation, environmental, process and quality measures, contribute to information asymmetry. It further reveals new variables that associate with information asymmetry, including documentation requirements, increasing regulation, consumer behaviour, incorrect data within the company as well as crises, political conflicts and supplier–buyer conflicts. Furthermore, the study shows that supply chain actors counteract asymmetry by focusing on social behaviour and monitoring suppliers through key performance indicators, employees and social aspects.Research limitations/implicationsThe study was limited to the universal influence of the variables on information asymmetry in the AFSC, making the magnitude of the influence and its context-specific nature unexplained.Originality/valueThis study is one of the very few that examines information asymmetry across the AFSC from the perspective of different actors, providing a more overarching and deeper understanding of information asymmetry.

Aggressive Earnings Management And Stakeholders Protection In Profit Listed Organizations

Investors want to know that their interests come first, thus they place a high value on the public perception of the companies in which they have invested. The problem of stock market and share price performance, which is a major concern for shareholders and investors in the Nigerian capital market and indeed any other stock markets, is unpredictable. This study investigated the relationship between aggressive earnings management and shareholders' interest in profitable publicly listed corporations. The study employed an ex-post facto research design. The population of the research consisted of 35 manufacturing companies listed on the Nigerian Exchange Group as of December 31, 2020. Purposive Sampling technique was adopted to select 10 companies from 2011- 2020. Data were obtained from publicly available yearly reports, and they were certified by the NSE and outside auditors. Both descriptive and inferential statistics were utilized to analyze the data using regression analysis. According to the findings, aggressive profits management had no discernible effect on business protection (FStat (2,97)=11.994, p > 0.05, Adj R2=0.43), but it had a discernible effect on creditors' protection (F- Stat (2,97)=2.74, p <0.05, Adj R2=0.39). In contrast, based on the study's findings, it was advised that management of businesses develop measures to help increase their profitability, which would in turn have an effect on shareholders' return on equity and earnings per share. Significant relationships between discretionary accruals, unusual production costs, and irregular levels of operational cash flow and stakeholders' interest in profit-listed firms were discovered. Second, business owners should use profits measurement methods that have been validated via testing on a global scale, like the numerous indicators included in this study that were gleaned from accounting and finance literature

Human Resource Accounting and Share Price Performance Evidence from Listed Insurance Firms in Nigeria

This study investigates the impact of Human Resource Accounting (HRA) on share price performance among listed insurance firms in Nigeria. Specifically, the study examines the effects of human capital efficiency, structural capital efficiency, capital employed efficiency, and the value-added intellectual capital coefficient (VAIC) on share price performance. This research adopts ex-post facto and descriptive research designs, utilizing data from 13 insurance firms listed on the Nigerian Exchange Group from 2012 to 2021. Random effect regression model was employed to address statistical issues ensuring robust results, after controlling for multicollinearity and heteroscedasticity. The findings reveal that human capital efficiency and capital employed efficiency significantly enhance share price performance, highlighting the importance of these factors in driving market valuation. Conversely, VAIC shows a significant negative impact on share price performance, suggesting that not all aspects of intellectual capital positively influence market outcomes in the insurance sector. These results contribute to a deeper understanding of how human resource investments affect financial performance, particularly in the context of emerging markets like Nigeria. Based on these findings, this study recommends among others that insurance firms should prioritize investments in human capital development through targeted training and continuous professional development. This approach will enhance employee productivity and innovation, which in turn would positively influence share price performance and contribute to the overall financial health and market competitiveness of the firm.

Should you buy gold stocks or paper gold?

We analyze which type of gold investment is better for investors by studying the determinants of returns on gold mining stocks (gold stocks) and gold exchange-traded commodities (gold ETCs) over the period from March 2012 to February 2024. We find that gold ETCs outperform gold stocks in both returns and risk, and respond significantly more positively to economic policy uncertainty (EPU), offering investors more favorable safe-haven properties. Gold stocks are also more sensitive to oil price increases than are gold ETCs, and their relative price performance is negatively related to both oil price changes and Gold VIX. We conclude that investing in gold stocks is less suitable for investors who buy gold as a safe-haven asset.

Economical rights versus God’s rights: criticising of the implementation Shariah economic in Indonesia

PurposeThis study aims to evaluate the impact of Law No. 11 of 2018 on Islamic Financial Institutions in Aceh, Indonesia. It also aims to understand the balance between the economic rights of individuals under Shariah law and the broader concept of God’s rights, as interpreted by this legislation. In addition, the research argues that the implementation of Law No. 11 of 2018 is untimely, with a focus on examining its influence on the cumulative abnormal return (CAR) of Shariah banks and its slight contribution to the direct economic impact.Design/methodology/approachThis study adopts a mixed-methods approach that integrates qualitative and quantitative analyses. The qualitative aspect uses a black-letter law approach for legislative scrutiny, whereas the quantitative aspect assesses economic indicators and firm performance using an event study analysis. The study also includes a two-tailed assessment to test hypotheses related to the law’s direct impact on institutional performance.FindingsThe study reveals that Law No. 11 of 2018 had minimal impact on national-scale corporate performance and a notable increase in poverty indices in Aceh, indicating a potential misalignment between the law’s intention and its economic consequences. The results also show the law’s ineffectiveness in significantly influencing the CAR of Islamic banks, highlighting a clash of norms and a lack of substantial economic substance in the implementation of Shariah compliance.Research limitations/implicationsThis research is geographically and legally focused on Aceh, Indonesia, with a short-term analysis that may not fully capture the long-term impacts. It primarily considers the stock price performance of specific institutions for quantitative analysis and identifies potential clashes and disharmony-in-law implementation from a qualitative perspective.Practical implicationsThe findings suggest the need for legal frameworks that better comply Shariah principles with economic realities. Regional governments should consider modifying policies to balance religious values and economic objectives.Social implicationsThis research highlights the importance of balancing religious obligations with economic rights, indicating that strict interpretations of religious law can lead to adverse socioeconomic effects.Originality/valueThis study is unique in its comprehensive analysis of the convergence between religious law and economic rights, offering insights into the challenges faced in implementing Shariah-based economic policies in diverse economies, such as Indonesia.