Price Performance Research Articles

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.

Determinants of Behavioral Intention Toward Telemedicine Services in Indonesia Post-Pandemic COVID-19

The COVID-19 pandemic has significantly disrupted daily life & accelerated the adoption of digital technologies across various sectors, including healthcare. In Indonesia, this shift has prompted the rapid development and implementation of Telemedicine services by both start-ups and established healthcare institutions. This study aims to identify the factors that influence customer intention to use Telemedicine services in the post-pandemic period, using the Unified Theory of Acceptance and Use of Technology (UTAUT2) model. The research focuses on five key variables: Price Value, Effort Expectancy, Geographical Location, Performance Expectancy, and Social Influence. Data collected from 507 respondents across Indonesia through an online questionnaire reveals that user satisfaction is critical for further use of Telemedicine services. The findings indicate that improvements in the affordability, user-friendliness, accessibility, effectiveness, and social endorsement of Telemedicine services significantly enhance user satisfaction. The study provides practical recommendations for Telemedicine providers to improve these factors, thereby increasing customer retention and adoption rates. This research contributes to the understanding and offers insights for optimizing Telemedicine services in Indonesia in the evolving post-pandemic behaviors

The Share Price Behavior of the IPO Surrounding the Expiration of the Lockup Period. Evidence from IPOs with No Analyst Positive Recommendations

This study investigates the share price performance of the IPOs surrounding the expiration of the lockup period in the Malaysian stock market. The study explores whether the IPOs without analysts’ positive recommendations give a significant positive share price performance in situations of the negative effect of the expiration of the lockup period. The IPOs sample of 281 companies was taken from the period of January 2000 to December 2014. The study applied event study methodology to investigate the performance of the IPO share price. The study found that the IPOs without analysts’ positive recommendations gave an insignificant positive share price performance in the event window of (-10, +10) surrounding the expiration of the lockup period. Whilst, the longer event window (-30, +30) shows a significant positive share price performance surrounding the expiration of the lock-up period

Evaluation of NPK, Nitrogen (N)-Phosphorus (P)-Potassium (K), fertilizer to escalate Tetraselmis sp. production

Abstract Culture of Tetraselmis sp. requires Conway medium fertilizer with a complete and appropriate composition to support its growth. However, Conway fertilizer is quite expensive to be afford by farmer. One alternative fertilizer that can be used is commercial NPK fertilizer which is relatively cheap and easy to be obtained. NPK fertilizer contains nitrogen, phosphate, and potassium which are useful for the growth of plankton, including Tetraselmis sp. This research aimed to evaluate the production performance of Tetraselmis sp. using NPK fertilizer at semi-scale mass level. This study used a completely randomized design with three replications and three experiments (A = Conway as control, B = commercial NPK fertilizer with a ratio of N 16%, P 16%, K 16%, and C = commercial NPK fertilizer with an N content ratio of 6 %, P 20%, K 30%). The parameters of this study were population density, cell size, and nutritional content of Tetraselmis sp. The results showed that the peak population density and cell diameter did not differ in each treatment, although treatment C had the highest density (3.63±1.22 × 106 cells/ml). Protein content had values that were not significantly different (21.93–23.16%). The highest fat value was owned by treatment (6.8%). The research results showed that the use of NPK fertilizer in semi-scale mass cultures of Tetraselmis sp produced density, cell size and nutritional protein content that were not significantly different from Conway fertilizer. It is indicated that NPK fertilizer could be used as media of Tetraselmis sp. due to its cheap price and same performance.

STUDI EKSPLORASI FAKTOR PENENTU PENILAIAN HARGA SAHAM PT SEMEN INDONESIA (PERSERO) TBK

This research explores the share price performance of PT Semen Indonesia (Persero) Tbk from 2019 to 2023 using descriptive analysis methods. The research focus includes variables such as Earnings Per Share (EPS), Debt to Equity Ratio (DER), Total Asset Turnover (TATO), Return on Equity (ROE), Current Ratio (CR), Price Earning Ratio (PER), and Net Profit Margin (NPM). The data used comes from the annual financial report of PT Semen Indonesia. Research findings show that the company experiences significant fluctuations in EPS which are influenced by sales dynamics and operational costs.ROE shows variations in the efficiency of using own capital, while DER decreases consistently, reflecting good management in debt management. TATO and ROA experienced fluctuations, reflecting the company's efforts to optimize the use of assets to increase operational efficiency. The company's liquidity, as reflected in the CR remains stable in meeting short-term obligations. Even though PER has decreased, indicating a lower market assessment of share valuation, NPM varies due to fluctuating operational costs. To improve stability and profitability in the future, the company's focus needs to be increased on operational efficiency and better cost management

Persistent and transient variance components in option pricing models with variance-dependent Kernel

This paper examines theoretically and empirically a variance-dependent pricing kernel in the continuous-time two-factor stochastic volatility (SV) model. We investigate the relevance of such a kernel in the joint modeling of index returns and option prices. We contrast the pricing performance of this model in capturing the term structure effects and smile/smirk patterns to discrete-time GARCH models with similar variance-dependent kernels. We find negative and significant risk premium for both volatility factors, implying that investors are willing to pay for insurance against increases in volatility risk, even if it has little persistence. In-sample, the component GARCH model exhibits a slightly better fit overall and across all maturity buckets than the two-factor SV model. However, the two-factor SV model reduces strike price bias, giving rise to the model’s ability in reconciling the physical and risk-neutral distribution. Out-of-sample, the two-factor SV model has better fit to data.

Pricing VIX Futures and Options With Good and Bad Volatility of Volatility

ABSTRACTThis article studies the pricing of VIX futures and options by directly modeling the dynamics of VIX, based on realized semivariances computed from high‐frequency data of VIX. We derive the closed‐form pricing formula for both the VIX futures and options. The empirical results show that the new model provides superior pricing performance compared with the model based on conventional unsigned realized variance and the classic Heston‐Nandi GARCH model, both in sample and out of sample. Our study confirms that the decomposition of realized variance into upside and downside components helps to improve the pricing performance for VIX futures and options.

The Effect Of Profitability and Corporate Social Responsibility Disclosures on Company Value

Company value is a condition achieved by a company which is a reflection of public trust in the company. For companies going public, the company's value is reflected through its share price. Profitability is one of the financial factors that will be able to show the company's ability to achieve profits. Disclosure of corporate social responsibility is a non-financial factor as a form of corporate responsibility for the social and environmental impacts of the economic activities it causes. The aim of this research is to determine the effect of profitability and corporate social responsibility disclosure on the value of non-financial sector companies for the 2020-2022 period. This research uses the Compass 100 index, which is a stock index that measures the price performance of 100 stocks that have good liquidity and large market capitalization. The population was selected using a purposive sampling technique because not all companies in the research population met the specified criteria. The research results show that profitability and disclosure of corporate social responsibility have a positive effect on company value.

Are SPACs a good investment deal for investors? A performance comparison between SPACs vs IPOs

PurposeSPACs are reshaping the world of digital entrepreneurial finance. Firms in the digital sector often need access to public markets for long-term competitiveness. SPACs offer a viable solution for these entities to collect capital and transition to public ownership quicker than IPOs. In this context, the paper aims to analyse and compare the performance of SPACs with those of IPOs in the post-business combination phase. The objective is to provide novel insights into the determinants of SPAC operating and market performance by considering firm-specific and deal-specific characteristics and the broader implications of market uncertainty.Design/methodology/approachThe analysis applies univariate and multivariate OLS regressions to a sample of 96 SPACs to investigate the drivers affecting SPACs' performance vis-a-vis IPOs.FindingsThe study finds that SPACs underperform the matched group of IPOs on both operating and stock market performance (buy-and-hold strategy). The time to execute a business combination negatively correlates with SPAC performance, and proximity to the 80% deal threshold negatively affects share price performance and EBITDA margin.Practical implicationsThe objective is to offer insights for institutional investors to effectively select prime targets within the SPAC framework.Originality/valueThis study strengthens the findings related to the drivers influencing the long-term performance of SPACs that were previously identified in prior research.

Underwriter incentives and IPO pricing

We examine the impact of incentive fees paid to IPO underwriters at issuers' discretion on IPO pricing and short-term performance. We expect that better-incentivized underwriters produce more information required for IPO pricing reducing underwriters' reliance on investors' information production which requires compensation through IPO underpricing. Using a novel dataset, we find that incentive compensation mitigates the partial-adjustment phenomenon. IPOs with stronger incentives have more informative price ranges, higher price revisions, longer road shows and lower initial returns largely due to interaction effects between underwriters' incentives and their information-production capabilities. Using a battery of tests and addressing endogeneity, our results remain robust.

Calculation of the Structure and Reaction Potential Barrier of the Decomposition Products of SF6/N2 Mixed Gases

Abstract The greenhouse effect caused by SF6 gas in the power system cannot be ignored, and N2 has enormous industrial potential to replace pure SF6 by mixing with SF6 due to its advantages of low environmental pollution, low price, and stable chemical performance. This article combines density functional theory (DFT) and transition state theory (TST) to calculate the molecular structure and vibrational frequency information of various reactants, products, and transition states involved in SF6/N2 gas mixtures containing water and oxygen. The single point energy of each component is calculated using the CCSD (T)/cc pvtz theory level, and all reaction barrier energies are obtained. The calculated molecular structure and vibration frequency results are in good agreement with the experimental data of NIST, proving the reliability of the calculation method in this paper. The difficulty of the reaction can be determined by obtaining all the reaction barrier energies. It was found that SF5 molecules are unstable and prone to decomposition. SF4 is very important in the SF6/N2 reaction system, and further decomposition will produce a large number of stable by-products. The calculation method in this article helps to deeply understand the decomposition reaction mechanism of SF6/N2 mixed gas, and is of great significance for the research of decomposition experiments.

Transfer Pricing and Financial Performance of Listed Multinational Manufacturing Companies in Nigeria

Transfer Pricing and Financial Performance of Listed Multinational Manufacturing Companies in Nigeria

Research on KKVs Customers Behavior

This research investigated the shopping habits of consumers by using the psychological approach of personality. An interview method was used to gather data with a question list. All the interviews were done in a KKV store, a leading fashion retailer targeting the younger generation in China. Key findings of this research work include: First, there is no clear correlation between shoppers personality and their preferences over product categories; Second, the preference for social activities both have similar patterns. Preferences for social activities do not create differences amongst product preferences; Third, KKV can attract shoppers with different personalities and social behaviors, and the physical appearance of KKV seems to be the single most important factor in attracting its customers; Fourth, introverted people prefer shopping online, while extroverted people prefer shopping offline; There is no trend in people who likes both shopping ways; Fifth, Mobile internet advertising is the most effective way to reach potential customers; Sixth, Most of shoppers coming to KKV are quite price sensitive. The better the price performance, the more shoppers prefer it.