Stock Market Impact Research Articles

When Do Marketing Ideation Crowdsourcing Contests Create Shareholder Value? The Effect of Contest Design and Marketing Resource Factors

Firms often use crowdsourcing contests to develop marketing ideas and solutions. Despite the prevalence—and unique aspects—of marketing ideation crowdsourcing contests (MICCs), there has been little examination of these contests’ shareholder wealth implications. Adopting a signaling perspective, the authors conduct an event study of 508 MICC announcements and find that they are associated with higher returns, but also higher idiosyncratic risk, indicating that investors hold a mixed view of such contests. Further, the authors consider how contest design factors and firm marketing resources may signal the cultivation of intellectual and relational market-based assets to shape their stock market impact, providing firms guidance to better design their MICCs. Specifically, they find that returns are enhanced when firms use professional (vs. general public) contests, specifically scoped contests, and contests using crowd judging (vs. expert panels), and for firms with stronger marketing capabilities. However, brand factors have mixed effects on returns, with a brand's relevant stature having a positive effect and its energized differentiation having a negative effect on returns. Product MICCs and generally scoped contests heighten the negative effects on risk, whereas marketing resources have no impact. Results offer implications for practitioners, including the finding that many MICC design choices commonly used in practice (i.e., general public contests and expert panels) are viewed less favorably by investors.

The Emerging Stock Markets and Their Asymmetric Response to Infectious Disease Equity Market Volatility (ID-EMV) Index

The infectious disease equity market volatility (ID-EMV) index, projected by Baker et al. (Baker, SR, N Bloom, SJ Davis, KJ Kost, MC Sammon and T Viratyosin (2020). The unprecedented stock market impact of COVID-19. Review of Asset Pricing Studies, 10(4), 742–758), relates infectious disease to equity market variability during the COVID-19 disease. The ID-EVM index examines the asymmetric influence on the stock market returns of seven developing countries: Mexico, Turkey, Brazil, China, Mexico, India and Indonesia. The investigation applies various statistical estimations, for instance, unit root, quantile cointegration and quantile-on-quantile regression (QQR) approaches. The relation between the stock returns of seven emerging economies and infectious disease EMV index is revealed by the quantile cointegration approach. Additionally, the QQR procedure shows that amid bullish market situation, stock returns are positively influenced by the infectious disease index. While, amid the bearish market situations, stock returns are negatively influenced by infectious disease index, the findings of this research have important policy implications. A piece of valuable information on the nexus between the variability in the equity market and the infectious disease index is provided by this investigation during the COVID-19 pandemic. Policymakers and investors can benefit from this newly introduced ID-EMV index to understand the influence on emerging market countries of this infectious disease.

Spillover effect among carbon bond market, carbon stock market and energy stock market: Evidence from China

In this paper, we employ the time domain dynamic connectedness method of Antonakakis et al. (2020) and the frequency domain dynamic connectedness method of Barunik and Ellington (2020) to explore the complex linkages among Chinese carbon bond market, carbon stock market and energy stock market. We find firstly that the spillover effects among Chinese carbon bond market, carbon stock market and energy stock market are dynamic and mainly transitional. Secondly, carbon stock market and carbon bond market (especially the carbon neutral bond market) play the role of the major net transmitter and receiver of shocks, respectively. And, their roles as net transmitter and receiver of shocks are persistent. Finally, the risks of companies that have achieved effective results in the field of carbon neutrality may bring greater pressure to the energy stock market, but the carbon bond market can alleviate this pressure to a certain extent. Meanwhile, the impact of carbon stock market on energy stock market and the ability of carbon bond market (especially the carbon neutral bond market) to mitigate the risks of the energy stock market is persistent.

Analysis Of Stock Prediction Parameters and Their Impact on Effective Selection Of Stock

Stock value prediction is a multi-disciplinary field which requires efficient knowledge about the stock’s historic values, its news feeds, twitter sentiments, impact of global stock market(s) on the stock, etc. In order to effectively analyse a stock’s trend for inter-day, intra-day or long term, analysists have to evaluate these values on a continuous basis. Along with these values analysists also have to analyse non-stock data like recent news about the company, management changes in the company, tweets related to the company, global news & global stock market trends which affect the company in any way possible. Each of these data sources have a different effect on the stock’s value change, and it is recommended for a good stock prediction system to analyse the effects of these values before real-time deployment. Neglecting even a single parameter before deployment of the stock prediction system might result into a multitude of prediction errors. For instance, if twitter feeds for a stock are not considered during prediction of a nicely performing stock, and suddenly some news about a product fail comes online, then the stock prices might plummet, and the system will not be able to track it. In order to reduce the effect of these outlier events on predicted value of the stock, this paper analyses different parameters that affect stock prediction, and suggest the impact of these parameters on stock performance. Researchers can use this information in order to improve the accuracy of their deployed systems, and make these systems future proof.

The effect of oil price shocks on stock market performance in selected African countries

AbstractThe study's objective was to investigate how changes in oil prices affect stock market performance. The study's population consisted of selected African countries chosen based on factors like the size of their stock markets and whether or not they import or export oil. The world development indicator (WDI) and the OPEC bulletin or website served as sources for the data. The vector error correction model was used to analyse the collected data. Regarding the impact of oil price fluctuations on the performance of the stock market, the findings of the study were mixed. Oil price fluctuations have a positive impact on stock market performance for countries that import oil. For oil‐trading countries, the impacts were found to differ across examined countries. Oil price fluctuations had a mixed effect on both large and small stock markets. This demonstrates how crucial it is to investigate changes in the price of oil and how they might impact stock market performance, particularly in African countries.

Learning about unprecedented events: Agent-based modelling and the stock market impact of COVID-19

We model the learning process of market traders during the unprecedented COVID-19 event. We introduce a behavioural heterogeneous agents’ model with bounded rationality by including a correction mechanism through representativeness (Gennaioli et al., 2015). To inspect the market crash induced by the pandemic, we calibrate the STOXX Europe 600 Index, when stock markets suffered from the greatest single-day percentage drop ever. Once the extreme event materializes, agents tend to be more sensitive to all positive and negative news, subsequently moving on to close-to-rational. We find that the deflation mechanism of less representative news seems to disappear after the extreme event.

Pengaruh Risiko Luar Negeri Terhadap Pasar Saham di Indonesia Menggunakan Metode ARDL

This study aims to determine the impact of foreign risk factors (geopolitical risk index, Federal Reserve interest rate policy, the rupiah exchange rate against the dollar, S&P 500 index and world oil prices) on the stock market in Indonesia both in aggregate and by sector. This study used Autoregressive-Distributed Lag (ARDL) to analyze long term and short-term relationship dynamics. Empirical results show heterogenous impact of foreign risk factors on the IHSG and sectoral index. In the short-term geopolitical risk index, Federal Reserve interest rate policy, the rupiah exchange rate against the dollar, S&P 500 index and world oil prices impact stock market in Indonesia. In long term, foreign risk factors have relatively low impact on stock market in Indonesia. Geopolitical risks has positive effect the energy sector. US stock market has long-term impact on financial sector. This research is expected to contribute to the financial literature and policy making

Domestic Credit and Stock Market Impact on Economic Growth: A New Evidence in Five ASEAN Countries

Capital accumulation and technological innovation had been the two channels through which the financial sector plays a vital role in the growth of economy. However, there are some different results between banking and stock market. The research tested the Solow-Swan growth model augmented with financial markets to show that domestic credit markets and equity from stock markets are two long run determinants of Gross Domestic Products (GDP) per capita in five ASEAN countries: Indonesia, Malaysia, Singapore, Thailand, and Philippines. The research used data from 2000 to 2019 tested with panel regression. The result shows that all determinant variables have a positive impact on economic growth. The domestic credit also has a higher impact on the growth of economy than the stock market. In addition, domestic credit and stock market has statistically significant positif impact to economic growth across five ASEAN countries. The researchalso finds that although population in five ASEAN countries give positive effect to economic growth, it is statistically not convincing. It is suggested that people in ASEAN have already used technology, so population augmented encourages economic growth.

The volatility of daily tug-of-war intensity and stock market returns

We examine the predictive role of the volatility of daily tug-of-war intensity (VDTWI) in stock market returns. Based on the empirical evidence in China, we show that VDTWI significantly and positively impacts stock market returns. Moreover, the out-of-sample forecasting of VDTWI also performs well. Results show that the model of VDTWI has an out-of-sample R-squared of 3.473% and great economic values, of which certainty equivalent return and Sharpe ratio gains are 8.683 and 0.630, respectively. Furthermore, combining the volatility of daily tug-of-war intensity and popular predictors can improve forecasting performance.

Impact of Stock Market and Financial Development on Sustainable Development in Kuwait

This study aims to investigate the impact of the stock market trade openness and financial development on sustainable development in Kuwait. The study employed quarterly time series for analysis and from 1993-2018, and selected variables are Sustainable development, Stock market, financial development, and trade openness. Sustainable development is treated as a dependent variable, while the others are independent variables. It is concluded that a long run association among the stock market, financial development, trade and sustainable development exists. Autoregressive distributed lagged (ARDL) model is applied for long run and short run estimates. In long run stock market, trade openness and financial development are positive and significant factors of sustainable development, while in the short run, stock market is significant negative contributor to sustainable development. It is therefore recommended that efforts should be made to encourage the investor so that the stock market should grow in future. Similarly, efforts should be made to boost the financial and trade sector should that the country could grow economically, socially and environmentally.

Revisiting the role of firm-level carbon disclosure in sustainable development goals: Research agenda and policy implications

The urgency to overcome climate change under COP 26 and 27 has allowed closer attention towards environmental sustainability. As a result, businesses are under pressure from stakeholders to provide more information about greenhouse gas emissions and ecological footprints. The current study performs a systematic review of firm-level carbon disclosure under carbon disclosure project (CDP) publications to articulate key research themes based on bibliographic coupling, citation mapping and content analysis. VOSViewer was used to analyze carbon disclosure literature to provide a comprehensive overview of research themes, most-contributing authors, research journals, and keywords. Our findings reveal that climate change strategies, carbon footprint and market response to climate change (cluster 1), carbon information, stock market & financial performance and impact of environmental penalties over the cost of capital (cluster 2), GHG disclosure, stakeholder relevance and BOD effectiveness in environmental strategies (cluster 3) and determinants for dissemination of environmental information, carbon mitigation, and carbon management systems (cluster 4) are the most significant research themes within the existing research. Based on our research analysis, we provide several key policy recommendations to use carbon disclosure practices as a benchmark in evaluating firms’ commitment to environmental sustainability.

The Impact of Stock Market on Indian Economy

Abstract: The Third Largest within the world of Indian Economy in terms of buying power. it's going to touch new heights in coming back years. The Global investment Bank , by once North American country and China 2035 India would third largest economy of the globe. it'll grow to hour of size of the North American country economy. This booming economy of nowadays must pass through several phases before it will bring home the bacon the current milestone of Sept. 11 gross domestic product. Movements within the stock exchange will have a profound economic impact on the economy and individual shoppers. A collapse in share costs has the potential to cause widespread economic disruption. This paper deal s with stock market play very important role growth of Indian Economy and additionally the Impact stock exchange on Indian Economy by approach of Conceptual Methodology exploitation to the Journals of Indian stock exchange.

The Impact of Stock market on Economic Growth: Evidence of Bangladesh

The study investigates the impact of well-functioning stock market in Bangladesh economy (2003-2022). The research has taken account of secondary data and employed regression analysis to measure the intensity of possible influence that Dhaka stock market capitalization has on GDP. It has been demonstrated that the trends in stock market follow parallel momentum along with GDP. The genesis of a functional financial system resides in relevant capital markets that promotes and revitalizes platforms for smooth channeling of funds. A knowledge-based investment environment for investors would pursue higher efficiency and liquidity in the markets. The data collected for the study are analyzed quantitatively and significant statistical evidence have been found that the idea conforms to the analysis. Upper trend in stock market cap reflects inherent profitability and accessibility to resources of listed business companies hence, economic growth is enhanced.

A Review of Factors Affecting Real Estate Value for Property Developers in UAE

The research study aims to examine factors that have influenced the performance of property developers in the construction and real estate sector of UAE and Middle East with a view to identifying the root causes faced by property developers while completing construction projects. The UAE real estate market has witnessed significant losses and is facing a severe downturn, especially after the 2008 international financial crisis. Though the market has slowly managed to recover, real estate development continues to be hindered by several factors. The current study reviews some of the key variables that impact real estate value for property developers in the UAE. It examines factors that influence the price of real estate in the UAE and other countries, such as Kenya, Nigeria, Malaysia, Saudi Arabia, and countries in Europe. The current review shows that property developers must account for the current supply of properties, the prevailing interest rates, crude oil price, investor purchasing power and liquidity, USD exchange rate fluctuations, and regulatory impositions by the Real Estate Regulatory Agency (RERA) when determining the current and prospective value of a property in the Middle East, esp, UAE. Other micro factors that impact the value of property include location, availability of amenities, and property features. The impact of the UAE stock market on property value remains unclear. Furthermore, this research also analyzed relationship in stick market and real estate boom and found positive relation in USA but no such relationship was seen in UAE markets.

The Stock Market Impact of Volatility Hedging: Evidence from End-of-Day Trading by VIX ETPs

The Stock Market Impact of Volatility Hedging: Evidence from End-of-Day Trading by VIX ETPs

How Does Pension Funds Impact Stock Market Development? An Empirical Analysis from Nigeria Using ARDL Technique

How Does Pension Funds Impact Stock Market Development? An Empirical Analysis from Nigeria Using ARDL Technique

Factors Affecting Stock Market Movements: An Investors Perspective.

A number of things have an impact on the complicated system that is the stock market. Understanding the factors that affect stock market movements is crucial for investors, traders, and policymakers. This paper aims to review the literature on the various factors that impact stock market movements, including macroeconomic indicators, company performance, investor sentiment, geopolitical events, and monetary policy. The paper begins by discussing the traditional factors such as macroeconomic indicators, interest rates, and corporate earnings. It then explores the impact of non-traditional factors such as social media, news sentiment, and investor sentiment. The paper also examines the role of external events such as geopolitical tensions and pandemics on stock market movements. Finally, the study offers opportunities for further research and discusses the shortcomings of the current body of knowledge. The findings of this paper can provide valuable insights to investors, traders, and policymakers in their decision-making process.

시장 공포, 불확실성, 주식시장, 해상운임지수가 원유시장의 위험-수익 관계에 미치는 영향

본 연구에서는 원유시장을 대상으로 위험-수익 관계와 시장 공포, 불확실성, 주식시장, 해상운임지수 사이의 연관성을 검증하기 위해 2002년 1월부터 2022년 6월까지 일별자료를 이용하여 분석하였다. 본 연구를 위해 위험-수익 관계는 TVP-EGARCH-M 모형을 적용하였으며, 시장 공포, 불확실성, 주식시장, 해상운임지수와의 관계를 분석하기 위해 웨이블릿 일치성 모형을 이용하였다. 본 연구의 분석결과는 다음과 같다. 첫째, 시간 가변적 위험-수익 관계 결과에 따르면, 원유시장도 높은 수익률과 높은 위험과 관련이 있는 것으로 나타났다. 둘째, 상관관계와 그랜져 인과관계 분석결과, 위험-수익 관계와 VIX, EPU, S&P500, BDI 사이에서 약한 상관관계가 존재하는 것으로 나타났다. 그리고 EPU, S&P500과 위험-수익 관계에서 양방향 인과관계가 존재하지 않는 것으로 나타났지만 VIX와 BDI는 위험-수익 관계에 영향을 주는 것으로 나타났다. 셋째, 웨이블릿 일관성 결과를 보면, 위험-수익 관계와 VIX, EPU, S&P500, BDI 간의 관계 정도는 시간 가변적인 것으로 나타났다. 특히, 위기기간(금융위기, 코로나19) 전후에 서로 간의 관계가 높은 것으로 나타났다. 그리고 장기에 연관성이 높은 것으로 나타났다. 또한 위험-수익 관계는 VIX, EPU와는 양(+)의 관계, S&P500, BDI와는 음(-)의 관계가 있는 것으로 나타났다. 따라서 시장참여자가 의사결정을 할 때 경제적인 환경 변화를 잘 인식해야 할 것이다.

The Impact of Stock Market on Growth of Industry in India during Post Reform Periods

The stock exchange facilitates the industrial growth by providing finance for the enterprises. A well developed and ably regulated stock market facilitates sustainable development of the country in general and industry in specific, by providing long run funds in exchange for financial assets to the inverters. It creates market for company’s shares. It also helps in increasing the esteem and status of the company. The stock exchanges also promote the company by creating public interest in it with additional fund by means of issuing new shares or other securities. Industrialization or perish is the development mantra Sir M Visvesvaraya gave to India. But the path to industrialization is not an easy path, It requires lost of infrastructures including that of finance. The growth of the Corporate Industrial sector, apart from its own savings depends on the inflow of financial resources into it. The importance of financial sector to industrial growth as well as economic growth is debated by various economists. Some economists like Robinson (1952), Lucas (1988) do not consider financial system as important tool for economic growth. BSE is the biggest stock exchange of India. It represents the stock market development of India. The turnover of Bombay stock exchange at cash segment was 45,696 Crore in during 1992-93 which increased to 13,38,225 Crore In 2021-22. The market capitalization of BSE was 3,23,363 Crore in 1991-92 which increased to 2, 64, 06,501 Crore in 2021-22. Sensex which reflect the pulses of stock market was 1842 points in 1991-92 which increased to 55775 points in 2021-22. And industrial production which determine the economic growth of Indian economy was 3,25,150 crore in 1991-92 which increased to 37, 49,971 crore in 2021-22

Dynamic nonlinear impacts of fossil energy on renewable energy stocks: A quantile perspective

In the global context of advocating low carbon and environmental protection, the renewable energy market has developed rapidly. As a means of combating global climate change, renewable energy has sparked interest from private investors as a new investment opportunity. In this paper, the quantile–quantile regression (QQ) method and the quantile causality (QC) method are used to study the influence relationship between the fossil energy futures market and the renewable energy stock market returns at different periods and under different market conditions. Results show that when the market is in a normal state, the fossil energy market and the renewable energy stock market have a weak positive relationship, and the positive impact is in the order of crude oil market > natural gas market > heating oil market. While in a bear market, the influence relationship would be abnormally strengthened or even reversed, showing extreme asymmetry. Furthermore, we find that the influence of the fossil energy market on the renewable energy market shows country heterogeneity, and the impact is more significant for developed countries. Some meaningful implications can be concluded for investors and policy-makers. Firstly, both investors and policy-makers should be more alert to the impact of the petrochemical energy market on the renewable energy market. Secondly, investors should be more alert to the downside market risks and further distinguish the different impacts of the natural gas market and the heating oil market on the renewable energy market when making portfolios. Thirdly, policymakers should take some targeted measures to buffer the negative impact of the renewable energy stock market in petrochemical energy when the market is bearish.