Securities Companies Research Articles

The Influence of Personality Traits on Stock Investment Retention: Insights from Thai Investors

Understanding the psychological factors that influence investment decisions is crucial for predicting stock investment retention. This study investigates the mediating role of the Big Five personality traits in stock investment retention, utilizing a modified version of the theory of planned behavior. By examining the influence of investors’ perceived risk and attitudes toward stock investment, data collected via an online survey with The Association of Thai Securities Companies (ASCO) were analyzed using Structural Equation Modeling (SEM). The findings reveal that extraversion, openness, and conscientiousness significantly impact attitudes toward stock investing, which in turn affects investment retention. However, personality traits do not directly influence risk perception. This research provides unique empirical evidence of the independence between the Big Five personality traits and risk perception among Thai stock investors, underscoring the importance of personality in shaping investment behavior through its effect on attitudes.

Reasons for capital increase of securities brokers

Introduction: The study uses a linear regression model based on Pooled OLS, FEM, REM, GLS panel data to examine the impact of financial capacity on sustainable growth in order to create more grounds for evaluating the financial capacity of Vietnamese securities companies.Methods: The study excludes newly established or merged companies whose financial data do not ensure comparability and those that do not disclose sufficient information required for the study. The research uses a linear regression model based on panel data to test the impact of financial capacity on sustainable growth, thereby providing a basis for evaluating the financial capacity of Vietnamese securities companies. Results: Results show evidence identifying 8 independent variables explaining 89.2% of the variation in the dependent variable (SGR), including: Size of the securities company (Size); Self-financing ratio (SFA); Debt to equity ratio (Leverage); Return on equity (ROE); Return on total assets (ROA); Additional capital from profit ratio (RER); and Capital adequacy ratio (Caps).Conclusions: Based on the research, the author offers recommendations for managers of securities companies in making financial decisions

Research on the Transformation and Development of Investment Bank FICC Business of CITIC Securities Company Limited

In the current financial environment, with the continuous expansion of China's economic output and the continuous expansion of demand for financial services, the mutual influence of the international market is gradually deepening. Deepening the development of FICC business has become the core breakthrough point for the high-quality development of securities companies. Since its development, the FICC business (i.e. capital intermediary business) under the investment banking system of CITIC Securities has been involved in fixed income, foreign exchange, commodities, etc. However, there is still a significant gap in its development compared to international investment banks. Taking the current research status of FICC business at home and abroad as the background, taking CITIC Securities Company as an example, analyze the development status of its FICC business from multiple perspectives. Analyze the development bottlenecks in various aspects such as overall capital scale, traditional business and internationalization level, talent team structure, and technological innovation ability, and propose targeted solutions to improve the risk management system, expand the FICC business chain, accelerate technology investment, improve organizational structure, and leverage synergies to promote the transformation and development of CITIC Securities' FICC business and support the high-quality development of the securities and finance industry.

Intention to use eva in financial analysis of securities companies

Intention to use eva in financial analysis of securities companies

Human Resource Management Factors in Financial Analysis of Securities Companies

The outcomes of financial analysis serve as the basis for crucial decision-making in business operations. However, many small-scale securities companies tend to overlook this aspect. This study aims to investigate the relationship between financial analysis activities and business outcomes of small-scale securities companies in Vietnam. Data were collected from 92 respondents working in 27 small-scale securities companies (with owner equity of less than 250 billion Vietnamese Dong), holding positions such as management (directors, assistant directors, financial directors, chief accountants) and staff (financial and accounting personnel) involved in financial and accounting operations of Vietnamese securities companies. Sampling was conducted selectively from September 2023 to December 2023. Utilizing quantitative research, the Partial Least Squares Structural Equation Modeling (PLS-SEM) method was employed using SPSS 20 and AMOS 20 software. Results indicate that Financial Analysis Method (MAF) and Financial Analysis Content (variable FAC) positively influence financial analysis activities of small securities companies. Recommendations to enhance securities companies' business outcomes include (i) employing the EVA technique in financial analysis, (ii) improving management capabilities in financial report analysis, (iii) enhancing the skills of accounting and financial staff, and (iv) applying and operating professional ethical principles.

Tác động của Fintech đến hiệu quả hoạt động kinh doanh của các công ty chứng khoán tại Việt Nam

In recent years, securities companies in Vietnam have gradually applied Fintech to business activities to diversify products and services provided, enhance customer access with the goal of improving business performance. This study focuses on evaluating the impact of Fintech on the business performance of 76 securities companies operating in the Vietnamese market in the period 2015- 2022. Research results show that Fintech application has a positive impact on the business performance of securities companies in Vietnam. From these results, the author proposes a number of solutions and recommendations for securities companies to improve business performance in the current context of digital transformation such as focusing on investing in research activities, applying Fintech in accordance with trends, developing high-tech human resources

Influence of Financial Literacy, Investment Promotion, and Socioeconomic Status on Stock Investment Decisions Through Risk Perception

Introduction: This paper talks about determine and analyze the influence of financial literacy, investment promotion, ocioeconomic status, and risk perception on investment decisions. The object of this research is a stock investment gallery in Southeast Sulawesi. The population in this study are students who invest in shares through investment galleries. The sample for this research was 295 respondents taken using probability sampling techniques based on criteria. This research develops by combining the role of financial literacy, investment promotion to socialize investment products, and the socioeconomic status of students' backgrounds to change students' perceptions of the risks of investing in shares which will ultimately help students to make the right investment decisions in the future. Purpose: This research aims to determine and analyze the influence of (1) financial literacy on risk perception, (2) investment promotion on risk perception, (3) socioeconomic status on risk perception, (4) financial literacy on stock investment decisions, (5) promotion investment towards stock investment decisions, (6) socioeconomic status towards stock investment decisions, (7) risk perception towards stock investment decisions, (8) financial literacy towards stock investment decisions through risk perception, (9) investment promotion towards stock investment decisions through risk perception, (10) socioeconomic status on stock investment decisions through risk perception. Methods: The object of this research is a stock investment gallery in Southeast Sulawesi. The population in this study are students who invest in shares through investment galleries. The sample for this research was 295 respondents taken using probability sampling techniques based on criteria. The data collection method uses an online questionnaire and the analysis tool used is SEM-PLS Ver 3.0. Results and Conclusion: The research results show that (1) financial literacy has a positive and insignificant effect on risk perception, (2) investment promotion has a positive and significant effect on risk perception, (3) socioeconomic status has a positive and significant effect on risk perception, (4) financial literacy has a negative and insignificant effect on stock investment decisions, (5) investment promotion has a positive and insignificant effect on stock investment decisions, (6) socioeconomic status has a positive and significant effect on stock investment decisions, (7) risk perception has a positive and significant effect on stock investment decisions, (8) financial literacy has no influence on stock investment decisions through risk perception, (9) investment promotion has an influence on stock investment decisions through risk perception, (10) socioeconomic status has an influence on stock investment decisions through risk perception. Research implications: This research can be used as a reference in determining the factors that have the greatest influence that can influence students in investing in shares in the capital market. From the research results, securities companies can pay more attention to the investment promotions given to students by creating new promotional strategies so that students can make investment decisions. The regulator, in this case the Indonesian Stock Exchange, can also further increase students' financial literacy in the capital market so that they know the advantages and risks when they investing in the capital market. Originality/value: This research develops by combining the role of financial literacy, investment promotion to socialize investment products, and the socioeconomic status of students' backgrounds to change students' perceptions of the risks of investing in shares which will ultimately help students to make the right investment decisions in the future. This research also uses the analytical method (SEM-PLS) Structural Equation Model-Partial Least Square which is expected to be able to test all correlations between variables.

Foreign Institutional Ownership and Earnings Management

This study investigates the relationship between foreign institutional ownership (FIO) and earnings management (EM) using 552 firms of non-financial sector companies that publish annual financial reports for 2015–2021. We use ordinary least squares (OLS) for equation estimation. The results show that, overall, FIO has a negative impact on earnings management. Tests were also conducted on the FIO group: banks, insurance, pension fund mutual funds, and securities companies. The test results indicate that each group of institutional investors has a negative effect except for securities companies, which positively impact earnings management. The positive influence of securities firms shows that securities firms are more focused on trading strategies than managerial controls. The findings of this study are expected to contribute to the corporate governance literature and the quality of financial reporting. Institutional ownership as a corporate governance mechanism is expected to control earnings management which can reduce the quality of financial reporting. Keywords: institutional ownership, earnings management, agency theory

The Role of the Financial Services Authority as a Strategic Partner for the Progress of the Indonesian Capital Market

The Indonesian capital market still faces several obstacles, including relatively low growth rates, limited access to finance, and significant financial risks. Financial services authorities can become strategic partners that encourage capital market growth and stability by innovating products and services, increasing financial access, and collaborating with other parties. This research uses a descriptive type of research with a literature review and reading sources related to the research collected using the literature review research method. This research aims to explore the role of financial services authorities as strategic partners in supporting the progress of the capital market in Indonesia. Based on various sources and theories, it can be concluded that as a supervisory authority, the OJK regulates and supervises institutional, prudential and sound aspects and carries out inspections of financial institutions to ensure that each financial institution is healthy and able to serve the public interest. OJK regulations apply to the issuance of operating permits for stock exchanges, clearing and guarantee institutions, investment fund custodians and settlement agents, securities companies, investment advisors, securities bureaus and other legal entities. OJK also collaborates with various related parties, including educational institutions, the financial industry and the government, to encourage innovation in the Indonesian capital market. The impact of this OJK partnership can help mitigate community losses due to errors by capital market players.

The belt and road initiative and the over-leverage of securities companies

Using data from 203 securities companies in Chinese provinces that have announced participation in the Belt and Road Initiative (BRI) from 2008 to 2019, we study the impact of the BRI on these securities companies. We find that the BRI has induced a corporate and enterprise bond maturity extension effect, which in turn triggers the over-leverage problem of Chinese securities companies. The impact exhibits a lagged effect, with a stronger impact observed in years 2 and 3 compared to years 0 and 1. Moreover, we identify an asymmetric effect of the BRI on over-levered and under-levered securities companies. State-owned securities companies experience a greater impact compared to non-state-owned ones. Factors such as large asset size, high profitability, and low growth rate could mitigate the impact of the BRI on the securities companies' over-leverage level.

The impact of financial institutions' cross-shareholdings on risk-taking

The complex network associations formed by cross-shareholdings of financial institutions have affected the risk-taking of financial institutions, and have gained considerable attention in the realm of finance and corporate governance. This article uses 40 Chinese financial institutions listed on A-shares from 2012 to 2021 as data samples, using social network and panel regression to analyze the impact of cross-shareholdings of financial institutions on risk-taking. The research results show that: First, cross-shareholding intensity can reduce the risk-taking level of financial institutions. Second, the intensity of cross-shareholdings reduces the risk-taking level of financial institutions by increasing the level of diversified income. Third, securities companies have the best effect of reducing risk-taking levels through cross-shareholdings, followed by banks, and insurance institutions are relatively poor.

Determinants of Capital Structure: Evidence from Securities Companies

The objective of the paper is to explore the factors that tend to affect the debt-equity choice of securities companies in Pakistan. Data on the variables used in the study was extracted from income statements and balance sheets of various securities companies registered with the SECP over a period of 14 years from 2008 to 2021. Panel data analysis is based on the use of econometric techniques (fixed effects and random effects models) for estimation of results. Results of the study demonstrate that securities companies prefer to finance their assets with equity which denotes 72.15% of their total assets. In contrast, the total liabilities designate 27.85% of their assets. Profitability appears to be positively related to total and long-term debt ratios. The firm size is positive while tangibility is inversely associated with total and short-term debt ratios. Liquidity is negatively linked to all proxies of capital structure while the firm efficiency appears to have a positive connection with the short-term debt ratio. Results of the study are consistent with the predictions of trade-off and pecking order models. The empirical outcomes of the research offer some useful policy implications for regulatory authorities, managers and shareholders of the Securities Companies in Pakistan.

The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam

This paper examines the effect of shadow banking activities on the performance and risk-taking of 339 Vietnamese nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE). Using manually gathered data on firms' shadow banking activities from 2009 to 2021, the expansion of shadow banking is found to have a negative effect on the overall financial soundness of the securities companies, in particular negatively affecting performance and increasing the risk tolerance of companies. We present empirical findings about several aspects of shadow banking activities, including entrusted loans, entrusted investments, private lending, leasing, and commercial credit in this study. While the majority of shadow banking operations could have a negative impact on a firm's performance, we have discovered that commercial credit grants were crucial in reducing the COVID-19 pandemic's adverse effects on businesses, highlighting the need for financial stability in times of crisis. According to our results, the risk of shadow banking activities, which have consequences for policymakers and caution for nonfinancial enterprises, must be taken into consideration.

An Enhanced Ant Colony Optimisation Algorithm with the Hellinger Distance for Shariah-Compliant Securities Companies Bankruptcy Prediction

This study addresses the challenge of applying ant colony optimisation algorithms to imbalanced datasets, focusing on a bankruptcy dataset. The application of ant colony optimization (ACO) algorithms has been limited by their performance on imbalanced datasets, particularly within bankruptcy prediction where the some of bankruptcy cases lead to skewed data distributions. Traditional ACO algorithms, including the original Ant-Miner, often fail to accurately classify minority classes, which is a critical shortcoming in the context of financial distress analysis. Hence, this study proposes an improved algorithm, the Hellinger Distance Ant-Miner (HD-AntMiner), which employs Hellinger distance as the heuristic for ants to gauge the similarity or dissimilarity between probability distributions. The effectiveness of HD-AntMiner is benchmarked against established classifiers—PART and J48—as well as the conventional Ant-Miner, using public datasets and a specialized dataset of 759 Shariah-compliant securities companies in Malaysia. Utilising the Friedman test and F-score for validation, HD-AntMiner demonstrates superior performance in handling imbalanced datasets compared to other algorithms, as affirmed by the Friedman test. The F-score analysis highlights HD-AntMiner’s excellence, achieving the highest F-score for Breast-cancer and Credit-g datasets. When applied to the Shariah-compliant dataset, HD-AntMiner is compared with Ant-Miner and validated through a t-test and F-score. The t-test results confirm HD-AntMiner’s higher accuracy than Ant-Miner, while the F-score indicates superior performance across multiple years in the Shariah-compliant dataset. Although the number of rules and conditions is not statistically significant, HD-AntMiner emerges as a robust algorithm for enhancing classification accuracy in imbalanced datasets, particularly in the context of Shariah-compliant securities prediction.

Analysis of Transformation from Brokerage Business to Wealth Management Business of Huatai Securities

Seen from the Chinese securities companies 2023 half annual report , the first half of the performance is generally better, but the brokerage business is greatly affected by the market, the overall performance has declined , 54 of 57 data comparable securities companies growth rate is negative. This study will take the general decline of brokerage business performance of securities companies as the starting point, and Huatai Securities brokerage business has gradually transformed into wealth management business, so the analysis of Huatai Securities business as a research example is supported. Driven by social factors and internal factors, Huatai Securities should deepen its wealth management reform and analyze its weaknesses and opportunities from its own perspective. Meanwhile, this study gives suggestions for improvement, which can inspire the securities companies facing the same predicament to learn from the relevant experience and make prospects for development of Chinese securities companies. These results help China's brokerage economic business out of the development dilemma, to seek an organic combination of brokerage business and wealth management business, and to promote the prosperity of the securities industry.

Behavioral finance in sustainability accounting for investor decision making on investments in securities companies

This research aims to determine financial behavior in accounting for investor decision-making. The research method used in this research is a literature study research method. The data sources used as references in this research are relevant library sources, such as primary data sources (research data, research reports, scientific journals, etc.) and secondary data sources (essential government legal regulations, books, etc.). The object of the research is PT Mirae Aset Sekuritas. The theory used in the study is the Signaling Theory. This research shows that the company has implemented signaling theory well; this can be seen from data from PT Mirae Asset Sekuritas Indonesia, 2023.

The relationship between satisfaction, engagement, and organizational performance in securities companies

The stock market is a medium and long-term capital channel for the economy. The stock market only operates effectively when market participants operate effectively. As a core subject, the activities of securities companies have a great influence on the stable and sustainable development of the stock market, as well as on the existence and development of the securities companies themselves. Up to now, research on theoretical and empirical frameworks to clarify the relationship between satisfaction and engagement with performance in securities companies is still limited, especially research on securities companies on the stock market have the goal of upgrading the market from frontier to emerging market like Vietnam. This study proposes solutions to help top managers in Vietnamese securities companies enhance satisfaction, engagement, and organizational effectiveness. The research model was developed based on data collected from 1,250 survey responses from securities companies. By employing quantitative research using partial least squares structural equation modeling (PLS-SEM) in SPSS 20 and SPSS Amos 20 software, the results identified four factors influencing the satisfaction, engagement, and effectiveness of Vietnamese securities companies: 1) reliable and ethically driven top-level management; 2) appropriate job assignments, positions, and core technology systems supporting work; 3) employees’ income significantly affects the company’s effectiveness. Based on the research findings, this paper provides recommendations for securities companies in constructing management policies.

Factors affecting financial capacity

Abstract structured in: This article studies the factors affecting the financial capacity of Vietnamese securities companies.Introduction: Securities companies are a component that makes up the stock market. The birth and development of securities companies is associated with the formation and development of the stock market.Methods: The research data set includes audited financial reports (and financial safety) of Vietnamese securities companies (operating on the HNX, HoSE and Upcom exchanges) in the period from 2014 to 2021. The article uses the PROBIT binary model to analyze regression factors affecting the financial capacity of Vietnamese securities companies in the system, because the dependent variable is a binary variable, the independent variables will be quantitative. Measure the probability of impact of independent variables that change financial capacity from weak to strong.Results: The article has determined that the financial capacity of Vietnamese securities companies is governed by 6 factors belonging to the securities companies themselves (and 2 control variables and macro variables). All of the above factors have a positive or negative impact on the financial capacity of Vietnamese securities companies.Conclusions: Based on the research results, the author of the article offers some discussions and assessments on improving the financial capacity of Vietnamese securities companies in the coming time, in addition to recommending financial solutions aimed at improving financial capacity of Vietnamese securities companies in the coming time. high financial capacity for securities companies

Impact of financial capability on the sustainable growth of securities companies: A case study

Growth not compatible with the financial capacity of the business, uncontrolled growth, imbalance of resources, dependence on external funding, and financial risks may occur. That is the current situation of some securities companies, in the context of a volatile world economic context. Meanwhile, theoretical and empirical research on this special type of enterprise on the relationship between financial capacity and sustainable development is still limited, especially in countries with marginal stock markets, which are making emerging transformation efforts. The goal of the article is to clarify whether or not financial capacity has an impact on the sustainable development of securities companies. Data was collected by the authors from 78 securities companies, with 591 observations in the period from 2013 to 2022 operating on the Vietnam Stock Exchange. By using linear regression methods (OLS, FEM, REM, GLS regression models), the article has identified seven factors affecting the sustainable development of securities companies, those factors are 1) scale of total assets of securities companies; 2) self-financing coefficient; 3) financial leverage (debt ratio); 4) profitability of equity; 5) profitability of assets; 6) retained profits, and 7) financial safety ratio. With the experimental results obtained, the authors propose a number of solutions aimed at sustainable development for securities companies such as increasing equity capital, promoting debt capital mobilization, restructuring capital sources, and providing strengthened risk management capacity.

Enhancing operational efficiency in Vietnamese securities companies: Lessons from global practices and strategic recommendations

This study aims to improve the operational efficiency of Vietnamese securities companies by analyzing international practices and deriving pertinent lessons. Employing a research sample of secondary data, including audited financial statements and financial safety ratio reports from 70 Vietnamese stock market companies between 2013 and 2020, the study adopts analytical, synthetic, and comparative methodologies, underpinned by historical materialism. It meticulously investigates and evaluates practical aspects of business efficiency in securities companies, pinpointing specific challenges impeding operational efficiency in the Vietnamese context. The findings emphasize the need for substantial financial resources, advanced technical infrastructure, enhanced human resource quality and research activities, development of consulting services, and diversification of business operations and investor clientele. Additionally, it highlights the importance of flexible business strategies and effective utilization of company strengths. These insights offer a blueprint for Vietnamese securities firms to improve their performance and competitiveness in the global market.