Trading Ratio Research Articles

Using financial analysis ratios to evaluate the liquidity risks in industrial companies listed in the Iraq Stock Exchange

Cash liquidity is of great importance in industrial companies due to its impact on the management of the company’s operational activities, as well as the use of its surplus cash in investment, which returns to the company investment profits that support its financial position in the market. Low liquidity leads to the company being exposed to financial risks that may affect its activities and weaken its position. Financial, and here the company's management must pay attention to analyzing liquidity to assess its risks, using financial analysis ratios to evaluate cash liquidity and indicate its effects on the company's financial position. The study aimed to evaluate the liquidity of industrial companies listed on the Iraq Stock Exchange, to determine the risks to which they are exposed, using financial ratios, which are (trading ratio, quick liquidity ratio, and working capital ratio). The study reached conclusions, the most important of which is that the analysis of liquidity ratios showed Companies that suffer from low liquidity and that may be exposed to risks. It also showed companies that have surplus liquidity and can be invested to achieve additional profits. The study also recommended the need to pay attention to analyzing cash liquidity in industrial companies to evaluate liquidity and find appropriate opportunities for investment when liquidity indicators are high, or Addressing its risks when its indicators are low.

Using financial analysis ratios to evaluate the liquidity risks in industrial companies listed in the Iraq Stock Exchange

Cash liquidity is of great importance in industrial companies due to its impact on the management of the company’s operational activities, as well as the use of its surplus cash in investment, which returns to the company investment profits that support its financial position in the market. Low liquidity leads to the company being exposed to financial risks that may affect its activities and weaken its position. Financial, and here the company's management must pay attention to analyzing liquidity to assess its risks, using financial analysis ratios to evaluate cash liquidity and indicate its effects on the company's financial position. The study aimed to evaluate the liquidity of industrial companies listed on the Iraq Stock Exchange, to determine the risks to which they are exposed, using financial ratios, which are (trading ratio, quick liquidity ratio, and working capital ratio). The study reached conclusions, the most important of which is that the analysis of liquidity ratios showed Companies that suffer from low liquidity and that may be exposed to risks. It also showed companies that have surplus liquidity and can be invested to achieve additional profits. The study also recommended the need to pay attention to analyzing cash liquidity in industrial companies to evaluate liquidity and find appropriate opportunities for investment when liquidity indicators are high, or Addressing its risks when its indicators are low.

Representation of frequency-modulated sweeps in the cochlear nucleus of the big brown bat.

The cochlear nucleus (CN) receives ipsilateral input from the auditory nerve and projects to other auditory brainstem nuclei. Little is known about CN processing of signals used for echolocation. This study recorded multiple unit activity in the CN of anesthetized big brown bats (Eptesicus fuscus) to ultrasonic frequency-modulated (FM) sweeps differing in sweep direction. FM up-sweeps evoke larger peak amplitudes at shorter onset latencies and with smaller amplitude-latency trading ratios than FM down-sweeps. Variability of onset latencies is in the tens of microsecond ranges, indicating sharp temporal precision in the CN for coding of FM signals.

Attention allocation and return comovement when trading on smartphones: evidence from China

ABSTRACT This paper investigates the impact of smartphone trading on investor attention allocation. We find a positive connection between smartphone trading ratio and return comovement. Smartphone traders relatively pay less attention to firm-specific information and more to information at the market level than computer-based traders. The impact of smartphone trading is positively correlated to the Internet searching level but negatively correlated to social media discussion intensity and analyst following. We also show that market boom and crush would increase the effect of smartphone trading on attention allocation.

The design of the intertemporal trading ratio of carbon quotas

Carbon emission trading achieves both economic and environmental benefits. The imbalance between quota supply and demand restricts the development of the carbon market. The key to solving the issue is to set a reasonable intertemporal trading ratio. Currently, the study of carbon trading ignores the influence of environmental externalities, which leads to the deviation of market participants' behavior choices and government policy making. Considering the influence of non-price factors, taking environmental externalities as the cut-in point, use the optimal control method to analyze the issue of carbon quota conversion, and to make clear the driving factors and mechanism of the intertemporal trading ratio. Results show that the condition of choosing an optimal intertemporal trading ratio is when the value path of per-unit carbon emissions is equal to the marginal cost path of emission reduction. The intertemporal trading ratio depends on the firm discount rate, the natural attenuation rate of carbon emissions, the ratio of the social marginal damage value to the social marginal cost of emission reduction, and the combination effect among marginal cost of emission reduction, marginal profit of production from purchasing carbon quota and price of carbon transaction. The effect of different driving factors on the intertemporal trading ratio is heterogeneous in different situations. The results provide a reference for setting reasonable parameters of carbon trading policy.

Optimization of Pollutant Discharge Permits, Using the Trading Ratio System: A Case Study

Water quality management of rivers is one of the challenges in the analysis of water resource systems. The optimal operation of the pollutant carrying capacity of these systems provides significant economic value and could reduce treatment costs. In this study, the application of the trading ratio system is investigated to control the cost of pollutants in a river and make a fair deal. In this regard, transfer coefficients between pollution sources, along with the trade coefficients, are determined, considering the system limitations and each pollutant’s contaminant impact. To provide allowable limits of river water quality concentrations, the total cost of all sources and the system is minimized, using the linear programming method. Finally, the new trading discharge permits are calculated for each source. The proposed method is successfully applied to Dez River as a case study. Results show that using a trading ratio system could maintain water quality at a standard level containing economic benefits for the participants of this program.

WITHDRAWN: An auditing quality determinants and their impact on Iraqi commercial banks financial performance (an applied study on a sample of nine banks from 2012 to 2018)

The study aimed to clarify the effect of the existing relationship between auditing quality determinants, which were represented in the bank's size subject to auditing, wages, size and age of the audit offices, and financial performance indicators such as return on stocks, ownership percentage and trading ratio. The study sample has taken (9) Iraqi banks operating in the Iraq Stock Exchange for the period from 2012 to 2018, With a total of (63) questionnaire, which were sufficient to apply the method of panel data, and through the comparison in the analysis process between each of the aggregate regression model and the fixed or random effects model. The comparison between these models was based on the Haussmann test to determine the best model in the analysis process. The most important results of the study nevertheless were a direct relationship to the variable of bank size subject to auditing and the financial performance indicators, the inverse relationship of the variable of audit services fees with financial indicators, and the absence of any significant impact for each of the size & age of the audit offices. The study recommended the necessity of having officially disclosed financial reports for the audit services offices in the Iraqi business environment. Plus, the need of legal and legislative system that obliges the audit services offices to be adhere with.

Are the shareholding and trading behaviors of diverse investors affected by the relaxation of day trading?

The day trading in Taiwanese stock market expands considerably at the beginning of 2016, which increases the transactions of stocks consequently and sparks our interest in exploring the issue of day trading. In this study, we use the data of Taiwan Stock Exchange listed firms to investigate whether the day trading volume over total trading volume (hereinafter referred to as the day trading ratio) and the turnover ratio enhanced by the increase of day trading volume would affect the shareholding and trading behaviors of diverse institutional and individual investors. Unquestionably, we bring out several impressive findings. First, foreign institutional investors would not prefer holding or trading the stocks with high day trading ratios, whereas individual investors would prefer holding these kinds of stocks. We infer that this finding might result from the fundamental and the speculative concerns of these various investors. Second, domestic institutional investors and security dealers would prefer trading the stocks with high turnover ratios, but foreign institutional investors still lack of interest in trading these stocks, implying that the investment strategies would be dissimilar among various institutional investors. Since foreign institutional investors are regarded as the successful institutional investors in Taiwan, we argue that our revealed results may help market participants trace the behaviors of diverse investors, especially the foreign institutional investors, after day trading relaxation in Taiwan.

High frequency sensitivity to interaural onset time differences in the bat inferior colliculus

Many neurons in the auditory midbrain are tuned to binaural cues. Two prominent binaural cues are the interaural level difference (ILD) and the interaural time difference (ITD). The ITD cue can further be subdivided into the ongoing envelope ITD cues and transient onset ITD cues. More is known about the sensitivity of single neurons to ongoing envelope ITDs compared to transient onset ITDs in the mammalian auditory system, particularly in bats. The current study examines the response properties of single neurons in the inferior colliculus (IC) of the big brown bat, Eptesicus fuscus, to onset ITDs in response to high frequency pure tones. Measures of neurons’ dynamic ITD response revealed an average change of 36% of its maximum response within the behaviorally relevant range of ITDs (±50 µs). Across all IC neurons, we measured an average time-intensity trading ratio of 30 µs/dB in the sensitivity of the ITD response function to changing ILDs. Minimum and maximum ITD responses were clustered within a narrow range of ITDs. The average peak in the ITD response function was at 268 µs, a finding that is consistent with other non-echolocating mammals. Some ITD-sensitive neurons also showed weak facilitation of maximum response during binaural stimulation, compared to monaural stimulation. These results suggest that echolocating bats possess the potential to use onset ITD cues to assist in the azimuthal sound localization of ultrasonic frequencies.

Effects of IPO Offer Price Ranges on Initial Subscription, Initial Turnover and Ownership Structure—Evidence from Indian IPO Market

In this paper, we establish the significance and effects of initial public offer (IPO) offer price ranges on subscription, initial trading, and post-IPO ownership structures. The primary market in India provides a unique setting for estimating the effect of various initial public offer (IPO) price ranges and IPO issue factors on the initial demand for an IPO among investors, measured by full IPO subscription/oversubscription, initial turnover (liquidity), and the post-IPO listing ownership structure among investors (ownership). For the IPO pre-listing stage, this study uses firth logistic regression to estimate the effect of various IPO offer price ranges (low to high) and various IPO issue factors on the full subscription/oversubscription of an IPO in each investor category. For the post-IPO listing stage, the study uses OLS regression to estimate the effect of various IPO offer price ranges (low to high) and various IPO issue factors on the initial trading ratio (IPO listing day trading) and the ownership percentage between institutional and individual investors. We find that all investor categories show a lesser likelihood for full subscription or oversubscription of an IPO issue at the lowest range of IPO offer prices. At the post-listing stage, the results indicate a diverse IPO offer price range in which individuals and institutions maximize their respective ownership holdings after the IPO listing. The results further show that lower promoter holdings diffuse higher ownership among individual shareholders by targeting lower IPO offer prices, thus increasing control.

Air Pollution, Stock Return, and Volatility: Evidence from Korean Stock Markets

This study analyzes the direct and indirect effects of air pollution on the return and volatility of the KOSPI index through the trading ratio by investor type. The main results are as follows. First, air pollutants have a direct effect on volatility; coarse particulate matter (PM10) and fine particulate matter (PM2.5) have a negative effect on volatility. Second, air pollutants have a significant effect on the trading ratio by investor type; as the concentration of fine particulate matter (PM2.5) increases, the trading ratio of institutionals and those of foreigners decrease. Third, the effect of cumulative exposure of air pollutants on stock return and volatility is greater than that of daily exposure. Although there is no effect on daily exposure to air pollution, stock return decreases during cumulative exposure to fine particulate matter (PM2.5), nitrogen dioxide (NO2), and carbon monoxide (CO). The volatility changes significantly with cumulative exposure compared to daily exposure to coarse particulate matter (PM10), fine particulate matter (PM2.5), ozone (O3), nitrogen dioxide (NO2) and sulfur dioxide (SO2). Fourth, air pollutants have an indirect effect on stock return and volatility through trading ratio by institutional and foreign investors. In particular, the effect of air pollution through the foreign investors’ trading ratio is a remarkable result revealed in this study.

Responsible investment in the Chinese stock market

This paper provides insights into the current development of responsible investment in the Chinese stock market. We find that responsible investment can bring portfolio benefits to investors, and institutional investors have a holding preference for stocks in responsible investment indexes. By using a national air pollution proxy, we find that investors’ pessimistic mood on days with heavy air pollution has a negative influence on the stock return of A-shares, while stocks in responsible investment indexes display improved performance over the same time period. We use aggregated trading data to study the trading preference of Chinese retail investors on days when they are influenced by air pollution, and find that their total trading ratio shows a negative influence for both A-shares and responsible investment indexes. Moreover, there is more seller-initiated trading of the whole sample but more buyer-initiated trading of stocks in responsible investment indexes on air pollution days. This finding is consistent with the different stock return performances of these two samples. Our finding extends the studies of responsible investment to emerging markets and presents new evidence about the influence of environmental factors on trading behavior and return performance.

Designing markets for biodiversity offsets: Lessons from tradable pollution permits

Abstract Globally, governments and regulators face an ongoing trade‐off between meeting economic development needs and conserving biodiversity. Markets for biodiversity offsets are one tool which could secure biodiversity protection at lower costs to society whilst allowing some economic development to still take place. We provide a new perspective on biodiversity offset markets by focussing on what can be learnt from one of the best‐researched environmental markets: the market for tradable pollution permits. We argue there are four key design parameters in terms of how and what to trade. These design parameters likely determine the ecological effectiveness and economic efficiency of any market in biodiversity offsets. Policy Implications. Applying lessons from tradable pollution permit markets will be important if the benefits of biodiversity offset markets are to be realized more fully in future. A well‐functioning market for biodiversity offsets dually minimizes the economic costs of preventing future losses in biodiversity due to development and provides an economic incentive for landowners to invest in biodiversity conservation. The most crucial aspect of the market is what to trade (the currency in the offset market), and this has significant implications on the other key aspects of market design; the trading ratio which governs the rate of exchange between offsets at different points in space and time; the scale of the market; and how the market is regulated. We argue that markets function best where the conservation priority is a well‐defined unit of biodiversity which can be readily measured and monitored. In situations where there are already strong regulations safeguarding biodiversity, the benefit of biodiversity offset markets is in reducing the aggregate costs of conservation. We believe biodiversity offset markets will offer the highest potential in developing countries with weaker environmental protection and a greater need to reconcile economic development needs with conservation under limited funding.

Economic Insights in Ecological Compensations: Market Analysis With an Empirical Application to the Finnish Economy

Biodiversity is decreasing at an alarming rate. Current policies focus on the most valuable species and habitats but cannot stop the degradation occurring in less valuable habitats. One solution is offsetting the loss of biodiversity caused by development projects. The basic idea of biodiversity offsetting is simple: a developer must provide an improvement in biodiversity so that the lost ecological value is compensated for. A banking mechanism for offsetting entails a third party providing offsets for developers to purchase, and thus, an offset market emerges. We develop an equilibrium model to analyse the offset markets and apply the model to the Finnish economy and three selected boreal habitats. We examine how the market depends on trading ratios, the presence of an intermediary and the realization of risks associated with uncertainty. An intermediary can facilitate the market participants meeting each other with minimal transaction costs and safeguard against risks. The results show that the size of the offset markets could potentially be quite considerable and providing offsets could be a profitable business for landowners in Finland. The outcome of the restoration investment and a possible time delay between biodiversity losses and gains impact the trading ratios and thus, have a major impact on the market equilibrium. An intermediary may significantly decrease the costs of compensation for developers, provided that it can provide mature offsets when needed.

(Use of Financial analysis indicators, And their contribution to the construction of a model to determine the share price of the market in Sudan (Case study Faisal Bank: استخدام أدوات التحليل المالي في التنبؤ بسعر السهم السوقي في سوق الأوراق المالية بالسودان (دراسة حالة بنك فيصل الإسلامي السوداني)

The study aimed to identify the indicators of liquidity. And their contribution to the construction of a model to determine the price of the market share in Sudan, to highlight the importance of profit indicators in determining the share price of the market, and to identify indicators of indebtedness and the extent of their contribution in determining the share price of the market. The problem of the study was the extent to which liquidity indicators contributed to determining the market price of the stock, and whether the profit indices contribute to determining the share price of the market. Do indicators of indebtedness contribute to determining the market price of the stock? For the purpose of achieving the objectives of the study and finding solutions to the problems of the study, the researcher tested the following hypotheses; first, there is a statistically significant relationship between liquidity indicators and market price. Second, there is a statistically significant relationship between the indices of profitability and market price; third, there is a statistically significant relationship between the indicators of activity and the price of the market share. To test these hypotheses, the study relied on the historical approach, descriptive analytical approach, and the method of deductive approach. The results of the study showed a positive correlation between (65.61%) and the independent variable in the simple regression method (trading ratio) at an error coefficient of 0.0045, (0.008954), the absence of a relationship between the dependent study variable (market share price) and the associated independent variables (in percentages of the debt) , At an error coefficient of (0.150625). The study recommended recommendations such as adopting the proposed applied study models to analyze the trading ratio, adopting the proposed applied study models to analyze profitability ratios, adopting the proposed applied study models to analyze the ratio of total debt to equity

Permit trading with flow pollution and stock pollution

Water pollutants are non-uniformly mixed across space and different in the persistence of environmental damage. Their marginal environmental damage could vary to a large degree with emission locations. The efficient pollution control should integrate heterogeneity in the marginal environmental damage caused by pollutants. However, little literature on permit trading has considered the scale and the persistence of environmental damage in the meantime. This paper designs proper trading ratios in permit trading to alleviate environmental damage from both aspects. It finds that it is not only important but also indispensable to incorporate the decay rate of pollutant, the discount rate, and the initial pollutant stock into permit trading, so as to achieve the efficient pollution control.

Identifying optimal clean-production pattern for energy systems under uncertainty through introducing carbon emission trading and green certificate schemes

In this study, a two-stage type-2 fuzzy stochastic programming (TTSP) method is developed for supporting clean production of energy systems with carbon and pollutant mitigation under uncertainty. TTSP can handle multiple uncertainties expressed as type-2 fuzzy sets, random variables and interval values; it can also provide an effective linkage between the pre-regulated energy and environmental policies as well as the associated economic implication. The TTSP method is then applied to planning energy system of Shanghai through introducing carbon emission trading (CET) and green certificate (GC) schemes. The solutions obtained can help generate energy-supply and electricity-generation schemes under different carbon trading ratios and various development plans of renewable energy. Results reveal that (i) the city’s future energy structure would transit to the clean-production pattern on the basis of CET and GC policies; (ii) replacing fossil fuels with renewable energy sources (i.e. wind and photovoltaic power) can effectively facilitate reducing the emissions of pollutants (e.g., SO2, NOx and PM) and greenhouse gas (e.g., CO2). The results can help decision makers adjust energy and electricity supply, make appropriate mitigation plan, as well as gain insight into the relationship between mitigation schemes and optimal clean-production pattern.

Uncertainty analysis for effluent trading planning using a Bayesian estimation-based simulation-optimization modeling approach

In this study, a Bayesian estimation-based simulation-optimization modeling approach (BESMA) is developed for identifying effluent trading strategies. BESMA incorporates nutrient fate modeling with soil and water assessment tool (SWAT), Bayesian estimation, and probabilistic–possibilistic interval programming with fuzzy random coefficients (PPI-FRC) within a general framework. Based on the water quality protocols provided by SWAT, posterior distributions of parameters can be analyzed through Bayesian estimation; stochastic characteristic of nutrient loading can be investigated which provides the inputs for the decision making. PPI-FRC can address multiple uncertainties in the form of intervals with fuzzy random boundaries and the associated system risk through incorporating the concept of possibility and necessity measures. The possibility and necessity measures are suitable for optimistic and pessimistic decision making, respectively. BESMA is applied to a real case of effluent trading planning in the Xiangxihe watershed, China. A number of decision alternatives can be obtained under different trading ratios and treatment rates. The results can not only facilitate identification of optimal effluent-trading schemes, but also gain insight into the effects of trading ratio and treatment rate on decision making. The results also reveal that decision maker's preference towards risk would affect decision alternatives on trading scheme as well as system benefit. Compared with the conventional optimization methods, it is proved that BESMA is advantageous in (i) dealing with multiple uncertainties associated with randomness and fuzziness in effluent-trading planning within a multi-source, multi-reach and multi-period context; (ii) reflecting uncertainties existing in nutrient transport behaviors to improve the accuracy in water quality prediction; and (iii) supporting pessimistic and optimistic decision making for effluent trading as well as promoting diversity of decision alternatives.

Endogenous Risk and Point‐Nonpoint Uncertainty Trading Ratios

Point‐nonpoint trading enables highly uncertain nonpoint pollution abatement to be substituted for relatively certain point source pollution abatement. Market designers use uncertainty trade ratios to address imperfect substitution between these commodities. Guidance from government agencies and other entities recommends large ratios that penalize trades for nonpoint abatement, and extant programs universally implement this guidance. Previous research has shown that the standard guidance is based on an inappropriate framing of the risk effects of substituting nonpoint for point source pollution abatement, and has demonstrated that the trade ratios should be set to encourage or discourage substitution, depending on whether the substitution is risk‐reducing or risk‐increasing. However, the Pigouvian pricing approach used to develop this result obscures the underlying economic calculus because it does not recognize or characterize the tradeoffs between abatement costs savings and environmental risk that must be considered in an economic evaluation of alternative ratios, and that would be key to explaining why ratios recommended by economic analysis would be preferred to received wisdom. We develop a new approach that explicitly identifies and characterizes the tradeoffs associated with the choice of ratio. The approach is examined both in first‐best settings where trade ratios and initial permit allocations are jointly determined, and in second‐best settings where permit allocations are taken as given. We provide a numerical analysis of trading in the Susquehanna River Basin in Pennsylvania to illustrate theory. We find theoretical and numerical support suggesting that smaller ratios may be optimal.

Short selling, margin buying and stock return in China market

AbstractIt is well argued that short sellers are informed traders, and short interests predict future stock returns significantly. However, most researches neglect margin buyers, as twin sisters of short sellers, and keep silent about their impact on stock returns. In this article, we demonstrate that margin buyers significantly impact predictive power of conventional short measures. We document that conventional short measures neglecting margin‐buying activities, short interest ratio (SIR) and days to cover (DTC) fail to predict stock return unless our analysis is confined to lightly margin bought stocks. We also show that short‐margin trading ratio (SMTR), revised short measure with consideration of margin buying, predict stock return more sharply. What is more, we can form profitable portfolios by the new short measure.