Equity Share Research Articles

A STUDY ON PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS IN INDIA

In the Indian Capital market various platforms for the investor to take a position their money for getting more return. Among equity share, bond, Treasury bill, bond, open-end fund then many, but within the Indian capital market, an open-end fund is one among the foremost favorable platforms for an investor to increase their wealth. That is why here we are conducting a study on selected mutual funds in India, the sample of the study is 7 mutual funds The Financial ratio analysis is employed for performance evaluation of fund, therein taking NAV (Net assets value) and return of the three years from 17th July 2017 to 2019. Finding Sharpe ratio, Variance, BETA, and Jenson's alpha on the bases of three-year data. In this study found market sentiment affect more in aggressive hybrid open-end fund compare to conservative.

Relevansi Nilai Earning per Share, Price Book Value, Cash Flow, Current Ratio dan Harga Saham: Return on Asset Sebagai Pemoderasi

The purpose of this study is to determine the results of Earnings Per Share, Book Value Equity, Operating Cash Flow, Investment Cash Flow, Funding Cash Flow, Current Ratio, Asset Returns and Asset Returns moderate Operating Cash Flow to Share Prices in manufacturing companies found in Indonesia stock exchange. This research population publishes manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2018 period. The sampling technique uses purposive sampling technique. Based on predetermined criteria the number of samples obtained by 9 companies. The type of data used in this study is secondary data using panel data regression analysis methods. The results showed that Earnings Per Share and Book Value of Equity showed a positive effect on the Share Price, then, Funding Cash Flow, Return on Assets and Return on Assets moderate the Operating Cash Flow negatively evaluating the Stock Price. Whereas Operating Cash Flow, Investment Cash Flow, and Current Ratio do not affect the stock price.
 Keywords: Stock Prices, Cash Flow, Finance Ratio

Dynastic Control Without Ownership: Evidence from Post-War Japan

Dynastic-controlled firms are led by founding family CEOs while the family owns an insignificant share of equity (defined as less than five percent). They represent 7.4% of listed firms in post-war Japan, include well-known firms such as Casio, Suzuki and Toyota, and are often grouped with widely-held firms in the literature. These firms differ in key performance measures from both traditional family firms and non-family firms, and evolve from the former as equity-financed growth dilutes the founding family’s ownership over time. In turn, the transition from dynastic control to non-family status is driven by a diminution of strategic family resources.

In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis

We develop a framework to theoretically and empirically analyze the fluctuations of the aggregate stock market. Households allocate capital to institutions, which are fairly constrained, for example operating with a mandate to maintain a fixed equity share or with moderate scope for variation in response to changing market conditions. As a result, the price elasticity of demand of the aggregate stock market is small, and flows in and out of the stock market have large impacts on prices. Using the recent method of granular instrumental variables, we find that investing $1 in the stock market increases the market's aggregate value by about $5. We also develop a new measure of capital flows into the market, consistent with our theory. We relate it to prices, macroeconomic variables, and survey expectations of returns. We analyze how key parts of macro-finance change if markets are inelastic. We show how general equilibrium models and pricing kernels can be generalized to incorporate flows, which makes them amenable to use in more realistic macroeconomic models and to policy analysis. Our framework allows us to give a dynamic economic structure to old and recent datasets comprising holdings and flows in various segments of the market. The mystery of apparently random movements of the stock market, hard to link to fundamentals, is replaced by the more manageable problem of understanding the determinants of flows in inelastic markets. We delineate a research agenda that can explore a number of questions raised by this analysis, and might lead to a more concrete understanding of the origins of financial fluctuations across markets.

Bike Share Equity for Underrepresented Groups: Analyzing Barriers to System Usage in Baltimore, Maryland

Bike share systems are a standard feature of the urban mobility ecosystem but they have received criticism for serving a narrow demographic band of residents and visitors while underrepresenting others. This analysis employed Chi-square and multivariate linear regression analyses to understand effect sizes associated with how various demographic groups in Baltimore, MD perceive barriers to utilizing the city’s new Baltimore Bike Share (BBS) system. The analysis revealed that people of color, Hispanics, the less-educated, females, low income earners, and the unemployed are underrepresented in system membership. Regression analysis of non-user survey data suggested that nonwhite individuals are associated with a moderate increase in perceiving BBS to be challenging when riding with children or cargo. Being female is associated with concerns about system use, the ability to ride comfortably, maintaining personal hygiene, being a victim of crime or harassment, and an overall lack of interest in biking in Baltimore. Identifying as having low income or less education was not observed to be associated with any of the barrier conditions examined in this study. These findings can be leveraged to develop programs and policies to improve participation rates within underrepresented groups and enhance system equity.

RESEARCH OF THE FINANCIAL CONDITION AND PROBABILITY OF BANKRUPTCY OF THE AGRICULTURAL COMPLEX OF UKRAINE

Introduction. The effective functioning of the agro-industrial complex is ensured by the coordinated work of enterprises of different types of economic activity that are part of it, so it will be important to study their condition. Given the instability of the macroeconomic situation, which today is characterized by uncertainty and risk, the activities of agriculture ensure food security of the state, performing an important social function, so it needs research. The main purpose of the article is to analyze the current state of enterprises of the agro-industrial complex of Ukraine. Results. The article examines the current state of enterprises of the agro-industrial complex of Ukraine. The probability of their bankruptcy is analyzed. Preliminary analysis of the structure of economic assets and sources of their formation allowed to identify the most critical problems in the financial well-being of these enterprises, which may affect the rhythm of their work in the future and lead to bankruptcy. At most enterprises of the agro-industrial complex, the share of current assets in their total volume exceeds the normative values. This is evidence of inefficient use of capital and the formation of excessive balances of working capital at various stages of turnover, in particular, in the form of receivables. The general tendency of financing economic activity at the enterprises of agrarian and industrial complex, in the conditions of insufficient volumes of own capital, is attraction of short-term, instead of long-term obligations. This leads to a loss of balance sheet liquidity and may lead to an insolvency crisis in the future. The financing of economic activity was due to short-term liabilities in the amount, and the share of equity in trade in food and agricultural raw materials and live animals is traditionally low. Thus, the financial stability of these activities is too low. Uncovered losses of previous periods led to a complete loss of equity in the production of fertilizers and agrochemical products. Conclusions. Based on the results of the study, it is established that today the driving force of this sector of the economy are medium-sized enterprises, which are also characterized by the best level of financial well-being. Keywords: enterprises of agro-industrial complex, probability of bankruptcy, rhythmic work, food security.

Portfolio Choice with Time Horizon Risk

I study the allocation problem of an investors who holds her portfolio until reaching a target wealth. The strategy suppresses final wealth uncertainty but creates a time horizon risk. I begin with a simple mean variance model transposed in the duration domain, then study a dynamic portfolio choice problem with Generalized Expected Discounted Utility preferences. Using long-term US return data, I show in the mean variance model that a large amount of time horizon risk can be diversified away by investing a significant share of equities. In the dynamic model, more impatient investors are also more averse to timing risk and invest less in equities. The equity share is downward trending as accumulated wealth approaches its target.

REAL OPTION SIGNALING GAMES OF DEBT FINANCING USING EQUITY GUARANTEE SWAPS UNDER ASYMMETRIC INFORMATION

We analyze the real option signaling game models of debt financing of a risky project under information asymmetry, where the firm quality is only known to the firm management but not outsiders. The firm decides on the optimal investment timing of the risky project that requires upfront fixed funding cost and subsequent operating costs. The fixed funding cost is financed via either direct bank loan or entering into a three-party equity guarantee swap (EGS) that involves a bank granting the loan and third party guarantor. Under the EGS agreement, the guarantor is obligated to pay all the future coupon stream to the bank upon default of the firm. In return for the provision of the guarantee, the guarantor obtains certain proportional share of equity of the firm at the time when the swap agreement is signed. The share of equity demanded by the guarantor depends on the outside investors’ belief on the firm quality. The low-type firm has the incentive to mimic the investment strategy of being high-type in terms of investment timing and share of equity. The high-type firm may adopt the appropriate separating strategy by speeding up investment or choosing an alternative financing choice. The resulting loss of the real option value of the investment opportunity represents the information cost under separating strategies. We examine the incentive compatibility constraints faced by the firm under different quality types and discuss characterization of the separating and pooling equilibriums. Unlike the usual assumption of perpetuity of investment opportunity, our real option model assumes the time window of the investment opportunity to be finite. We explore how the information cost and nature of separating and pooling equilibriums evolves over the finite time span of the investment opportunity. The information costs and investment thresholds exhibit interesting time-dependent behaviors. We examine the firm’s investment and financing choice between EGS and the direct bank loan against time and other parameters via comparison of the corresponding information costs and investment thresholds.

More Estranged Bedfellows: Reform of State-Owned Local Partners and Ownership Realignment

The establishment of the State-owned Asset Supervision and Administration Commission (SASAC) was announced in 2003. This increased the pressure of state-owned enterprises (SOEs) to improve performance. How did this influence the dynamics of ownership structure of international joint ventures (IJVs)? We contend that when SOEs are forced to compete for survival they have more incentives to appropriate valuable assets of foreign firms through IJVs. Hence, we believe that upon the rise of SASAC foreign firms have stronger motivation to exclude SOEs from joint ventures to avoid appropriation by increasing equity share while SOEs need to maintain their ownership position to enable appropriation. Overall, these two competing forces may lead to inconclusiveness in the dynamics of equity share. To tease out them and demonstrate the tension, we differentiate between sensitive and non-sensitive industries in terms of foreign ownership and argue that the results of the wrestling between these two forces vary in two types of industries. The results from analyses based on the longitudinal data of Sino-Japan joint ventures in China reveal two opposite impacts of SASAC on foreign equity of SOE-owned IJVs in sensitive and non-sensitive industries, which is also moderated by the level of administrative affiliation of SOEs (i.e., central government or local government).

Effect of Return On Assets, Return On Equity and Earning Per Share on the price of shares at PT. Gajah Tunggal tbk

This study aims to determine the effect of Return on Assets, Return on Equity and Earning Per Share on stock prices at PT. Gajah Tunggal Tbk. The method used was explanatory research with a sample of 8-year financial statements in the form of a panel PT. Gajah Tunggal Tbk. The analysis technique uses statistical analysis with regression testing, correlation, determination and hypothesis testing. The results of this study Return on Assets have a significant effect on stock prices by 53.4%, hypothesis testing obtained significance of 0.040 <0.05. Return on Equity has a significant effect on stock prices by 83.0%, hypothesis testing obtained significance of 0.002 <0.05. Earning Per Share has a significant effect on the stock price of 97.9%, the hypothesis test obtained significance 0,000 <0.05. Return on Assets, Return on Equity and Earning Per Share simultaneously have a significant effect on the stock price of 99.5%, the hypothesis test obtained significance 0,000 <0.05.

Locus of control and investment in risky assets

Internal locus of control is an important personality trait strongly related to many economic outcomes. We show that the probability to own equity and the share of equity in household portfolios increase with people’s internal locus of control. We explore, and find no evidence for, the hypothesis that this relation is driven by a link between internal economic locus of control and subjective expectations about the return and risk of investment in equity. The relation between locus of control and investment in equity also remains after controlling for risk and time preferences, financial literacy, overconfidence, optimism, trust, and other personality traits. We also show that locus of control has a stronger relation with investment in equity for financially illiterate investors. Our results document a strong and robust relation between locus of control and investment behaviour that cannot be explained by leading behavioural investment theories.

Investment Selection Pattern of Individual Investors’: A Study of Prayagraj District

Purpose of the Study- Through this paper, an attempt is being made to study the behaviour pattern of the retail investor when it comes to equity Investment and how the various biases and demographic variables impact the financial decisions. Methodology- An exploratory study conducted on the 51 equity share investors of PrayagRaj Region of Uttar Pradesh in India during the time period of 1st June to 3o June 2019 using Questionnaire method for data collection. Main Findings- Age and Gender both are affected by various types of Biases especially Herd Instinct, Self Attribution Bias and Regret Aversion Social Implication - Investment is the fuel to propel the economy forward. In order to leverage the Investment potential, a comprehensive planning and awareness about Investment tools has to be provided to all class of Investors. Our country is full of educational disparity especially when it comes to financial Investment awareness. Our high context culture also lends itself to a lot of Emotional and Cognitive Biases which affects the decision. Financial prudence is also impacted by Age and Gender. This paper shall be helpful for the financial Investment Industry to frame a suitable strategy and for the retail investor to understand the role and dynamics of these various parameters and attitudes. Novelty of the study – All the contents of this paper are original in nature and the help from other Articles have been properly mentioned in the reference section.

MENKUL KIYMET İHRACI VE TEDAVÜLÜNÜN MEŞRUİYETİ (HİSSE SENETLERİ, SUKUK, YATIRIM FONLARI)

Trading of securities (valuable documents) is one of the most popular trading transactions in the last century. This means that investors own valuable documents which represent the ownership by dividing the ownership and converting it to shares, instead of owning the goods itself directly. Securities are two different types which are securities represent receivable and securities represent ownership. Securities that represents a receivable are; government bonds, treasury bonds, company bonds, other borrowing securities issued by government institutions and other bonds issued in different names which assigns the payable-to-bearer receivables. International Islamic Jurisprudence Academy and, Accounting and Auditing Organization for Islamic Financial Institutions are unanimously prohibit the issuance of this kind of securities. Securities that represents ownerhip are; Equity shares, investment funds and sukuk. Equity shares, essentially aims to own a cash or recorded share of a company. This transaction consists of representing a cash or recorded asset by a written document and represents a common share in the capital of a company. Equity share is a financial document according to commercial law and represents ownership right in a company. Therefore, it is classified under the ownership documents. Commercial Law – as a company is a legal entity- separates equity ownership and company asset ownership. Equity share is assigned independent from the assets of a company. Thus, the equity shares issued by the company are owned by the company itself through assignment and hereby investor partners lose their registered rights. Investor partners have only a right in the profit made by the company throughout the time period they stayed in the corporation. Likewise, investors have rights in distribution of sale of the assets of the company in case of liquidation of the company. Because, investors own a part of shares of the company and a company, having legal entity, is independent from ownership of its own assets. There are two different opinions in the Islamic law. The first opinion is based on the situation if the company is a trust or mudaraba company. Share of partner comprises all of the assets of the company in both types. Shareholder is not prohibited from owning some assets of the company even though the company is a separate legal entity. Likewise, an equity share is a document which only proves the right of the shareholder in the company. It has no value by itself. However, it should have the same treatment with the company assets as it represents a right in company assets. According to the second opinion; Shareholders own the assets of the company indirectly but not directly and they have no capacity to act on the assets. Even if the value of the assets of the company becomes more valuable than the value of the shares of the company, equity share owners have no right to demand the access value. Likewise, they don’t bear any personal responsibility if the company borrows or makes loss because shareholders do not directly own the assets of the company. Sukuk represents common ownership on specific goods, asset or service, a specific project or assets employed in a specific investment activity and they are certificates issued equals to each other in terms of their values. Basically, there are two types of sukuks; Sukuk representing ownerhip and sukuk representing a receivable. While ijara sukuk, sukuk which enables to own a benefit, sukuk that enables to have a service and partnership based sukuk are represents ownerhip; murabaha sukuk, istisna sukuk and selem sukuk are the sukuk types which represent a receivable. The main characteristics are; Sukuk represents a common partnership on assets which are investment purpose underlying assets, goods, service, benefit or a mix of these by receivable, cash and intangible rights. Sukuk doesn’t represent a debt of an issuer. Sukuk is issued based on an agreement which is in compliance with Islamic rules essentials. Sukuk manager has no guarantee. Sukuk makes one a partner on profit on a defined rate and loss is limited by the share invested. Sukuk owners cannot pre-define a proportional or an amount of profit on nominal value of sukuk. All of the risks are taken. Circulation capacity of the sukuk in the Secondary market depends on the circulation capacity of the underlying asset itself in the secondary market. Sukuk owners undertake expenses which arise from the underlying asset sukuk represents - including maintenance, insurence, impairment or other expenses stem from investment itself. Investment fund is an asset which is setup by the money collected from the public in compliance with the law, in purpose of running a portfolio consists of certain assets in the name of certificate owners based on principle of risk distribution and fiduciary ownership.

Impact of Corporate Social Performance on Financial Performance: Case of Firms Listed on the Stock Exchange of Casablanca

This paper examines empirically the impact of corporate social performance (CSP) on financial performance (FP). The study relates to a panel of 32 firms listed on the Stock Exchange of Casablanca during the period of study from 2011 to 2017. The empirical findings obtained, by linear regressions on panel data, clearly find the lack of impact of the corporate social performance on the financial performance measured by the Return on Investment (ROI), Return on Equity (ROE) and Earnings Per Share (EPS) ratios. The influence of corporate social performance on financial performance is statistically insignificant. The financial performance of firms classified or not socially efficient are almost identical. Finally, the results obtained clearly show the absence of this causal link between corporate social performance (CSP) on financial performance (FP), which confirms the research hypothesis. Finally, since the relationship between these two performances could be non-linear, we can deepen this article using econometric methods that can analyze the non-linear effect such as quantile regression and the regime-change model.

Comparative Study of Value Relevance of Financial Information in the Oil and Gas and Manufacturing Sectors in Nigeria

This paper conducted a comparative study on the value relevance of accounting information in the Oil and Gas and manufacturing sector using five quoted companies which were randomly selected from each of these sectors. Data were collected on the Market Price per Share, Earning per Share and Book Value of Equity for the period 2014 to 2018 from the annual financial reports of the selected companies. We hypothesized that Value relevance in the oil sector do not have more significant effect on the earnings per share in the manufacturing sector and, also that Value relevance in the oil sector do not have more significant effect on the market price per share in the industrial sector. We regress book value of equity on both market price per share and earnings per share on the two sectors under consideration using simple linear regression techniques. The regression results revealed that accounting information of the companies in the industrial sector is more relevant compared to the financial information disclosed by companies in the Oil and Gas sector. The study recommends that the regulators of the market should carry out yearly Cross-sectional studies to ascertain the trend and include this comparison requirement as one of the yardsticks of measuring performance. Keywords: value relevance, earnings per share, book value of equity DOI: 10.7176/RJFA/11-12-03 Publication date: June 30th 2020

Spatial Pattern of a Comprehensive fE Index for Provincial Carbon Emissions in China

China has committed to ambitious targets to reduce its carbon emissions in the next decades, in order to combat climate change and improve the environment. The realization of the targets depends on the fair and effective mitigation plans of all provinces. However, with varying ecological and environmental conditions and social-economic development, it is a critical issue to quantify the provinces’ efforts equally. This paper proposed a comprehensive fE index in coordinating ecology, equity and economy, by accounting for carbon emissions and sinks to characterize provincial carbon emission status in China, from 2000 to 2017, which shows a spatial pattern of “boundary high, central low”. The provinces with higher fE value (>1.5) in boundary areas can be seen as “relative equality” provinces with good ecology circulation, equity and economic efficiency. The provinces with lower fE value (<0.7) in central areas around Bohai Bay are regarded as “severe inequality” provinces, and are identified as the hot-spot provinces, which have emitted more CO2 than their equity share by occupying the carbon emission space of other provinces in recent decades. These results could provide a reference for a provincial guide for carbon reduction and sustainable development of the low-carbon economy.

The stock market performance of exploration-oriented and exploitation-oriented cross-border mergers and acquisitions: Evidence from emerging market enterprises

This study builds on insights from mergers and acquisitions (M&A) studies and the perspective that stock market performance is affected by the M&A strategies of firms. Past studies show that acquisitions are an effective way to exploit existing knowledge and explore new possibilities. We argue that stock market performance can be a response to exploration/exploitation strategies in the context of cross-border M&As by emerging market multinationals. Based on cross-border M&A data of Chinese multinationals, we find that exploration-oriented acquisitions have worse stock market performance than exploitation-oriented acquisitions. Furthermore, we find support for our premise that acquiring firms can reduce the risk of exploration-oriented acquisitions by having more high-discretion slack resources or by maintaining a high level of equity share of the target firm. In addition, acquiring firms perform better if they conduct exploration-oriented acquisitions in related industries. Our results contribute to a better understanding of exploration and exploitation in the context of M&As.

On the performance of state capital and investment corporation

State Capital and Investment Corporation (SCIC) is a sovereign wealth fund (SWF) operating as a governmental specialized economic entity. SCIC serves two main functions: first, manage and represent the equity share of state at public companies, limited companies, and second, invest state capital into strategic industries and fields of the economy. This study compares the impacts of the ownership of SCIC and the state on the performance of target firms in Vietnam. In addition, the current study aims to extend the extant literature by examining the impact of sovereign wealth fund (SWF, in this case, SCIC in Vietnam) on the performance of target firms in Vietnam. Previous studies only consider the influence of SWF on target firms’ operating performance without considering the country where the target firms reside. Finally, the research investigates the influence of the ownership of SCIC and the state not only on financial but also on the non-financial performance of target firms, whereas previous research chiefly discusses the financial impact of SWFs. The author uses the Generalized System Method of Moments for a sample of listed firms collected from Thomson Reuters for the period of 2008-2017 to deal with the potential endogeneity issue as well as other defects such as heteroskedasticity and autocorrelation. The results show that SCIC ownership has a positive impact on target firms’ financial performance, compared to state ownership. However, SCIC ownership exerts a more negative impact on target firms’ non-financial performance, compared to state one. This finding implies that SCIC may prioritize financial indicators over non-financial (or social) ones. This could justify the reason why SCIC ownership has a better financial but lower non-financial performance compared with state ownership.

How Risky are the U.S. Corporate Assets?

We use market data on corporate bonds and equities to measure the value of U.S. corporate assets and their payouts to investors. In contrast to per share equity dividends, total corporate payouts are very volatile, turn negative when corporations raise capital, and are acyclical. This challenges the notion of risk and return since the risk premium on corporate assets is comparable to the standard equity premium. To reconcile this evidence, we show empirically that aggregate net issuances are acyclical and highly volatile, and mask a strong exposure of total payouts' cash components to low-frequency growth risks. We develop an asset-pricing framework to quantitatively assess this economic channel.

Phasing the operation mode of foreign subsidiaries: Reaping the benefits of multinationality through internal capital markets

The lifetime of foreign equity partnerships is often limited. Research suggests that MNCs abandon their local partners when the need for sharing ownership in foreign subsidiaries has diminished. This study shows that MNCs may abandon their local equity partners to reap the benefits of multinationality: as MNCs gain a competitive advantage from leveraging resources across borders, they will initially benefit from sharing ownership with a local firm, to embed their foreign subsidiaries in the local environment and access local resources more effectively. Later, they will benefit from taking over the local partner’s equity share, to better embed their subsidiaries in the parent organization and transfer locally accessed resources to the MNC’s other locations. Moderated-mediation regressions provide evidence of such practice in the context of cross-border transfers of capital resources. This strategy seems to work: as a corollary of our model, panel regressions suggest that sharing ownership with local firms in a host country with a capital resource advantage is associated with appropriating more capital resources from the local debt market, while abandoning these partner firms later is associated with transferring more capital resources from this host country, via internal capital markets, to other parts of the MNC.