Disposition Effect on Equity Shares in Nigeria

This study examined the disposition effect on equity shares in Nigeria based on the prospect theory and mental accounting. Specifically, this study was designed to assess the extent to which rising stock prices increase the sales of shares, as well as determining whether accounting information interaction with disposition effect has any relationship with the sale of stocks. To attain these objectives, research questions and hypotheses were formulated and tested. The study used Ex post-facto research design. Data were sourced from Nigerian Stock Exchange (NSE) official publication on daily volume of shares traded, Securities and Exchange Commission (SEC), and the Nigerian Bureau of Statistics (NBS). The population of this study comprised all listed companies in Nigerian Stock Exchange as at December 31, 2014 which have finished its obligation in delivering annual report for the year ended 2007 to 2014. The data collected were analysed using panel data regression analysis. To this end, we conducted descriptive statistics, correlation matrix and variance inflation test. Panel data regression corrected for Heteroscedasticity was also conducted to determine the effect of the independent variables in the models. It was empirically determined that, positive share price Returns have a negative influence on share prices in the Nigerian stock market in the period under review Keywords: stock prices, sales of shares, disposition effect, Value Relevance, prospect theor

empirical evidence from Colombo stock exchange

The aim of this paper is to examine the behaviour of stock returns of Sri Lankan companies with respect to two popularly known firm level characteristics: firm size and book-to-market equity, employing multi factor model for the period span from 2007 to 2011.Empirical findings from multiple regression analysis reveal that book-to-market equity has positive role in behavior of stock returns while firm size has expected negative direction in behavior of stock returns and not significant

The relationship between South Asian stock returns and macroeconomic variables

This article investigates whether economic variables have explanatory power for share returns in South Asian stock markets. In particular, using data for four South Asian emerging stock markets over the period 1998 – 2012, the article examines the influence of a selection of local, regional and global economic variables in explaining equity returns; most previous studies that have examined this issue have tended to focus on only local and/or global factors. Important factors are identified by distilling the macroeconomic variables into principal components. Economic activities, real interest rates, real exchange rates and the trade balance represent local factors. Regional factors are represented by inter-regional trade and regional economic activity while global factors are represented by world financial asset returns and world economic activity. The Vector Autoregression results suggest that the South Asian markets examined are not efficient. Both local and regional factors can directly and indirectly explain Bangladeshi, Pakistani and Sri Lankan stock returns while the lagged returns of the Pakistani stock market and world economic activity can explain Indian stock returns

Corporate Governance and Firm Valuation in Colombia

This paper studies the separation of ownership and control of 108 listed companies in Colombia from 1996 to 2002, finding that voting rights are greater than cash flow rights because of indirect ownership across firms. The paper also examines the association of various ownership and control measures and separation ratios with a firm’s value and performance for the same sample of companies that traded their stock from 1998 to 2002. Large blockholders were found to exert a positive influence upon a firm’s valuation and performance, which validates the positive monitoring approach of large shareholders, but this relationship is not monotonic. The paper further reports results from a 2004 survey which suggests that Colombian firms have been slow to improve their corporate governance practices.

On Labour Shares in Recent Decades: A Survey

We survey the rich literature studying the behaviour of labor shares in recent decades. To explain their dynamics – the main feature being the decline of European and American shares starting in the 1980s – such literature considers models that use either neoclassical or Leontief-type production functions, with both perfectly competitive markets and monopolistic competition coupled by bargaining between firms and workers. These empirical studies in general have produced results that are scarcely robust. However, they suggest that technical change has a negative and significant impact on the labor share. Evidence for a negative effect of globalization variables is clearly brought out for developing countries, whilst for advanced countries, this effect finds less support. Also, they show that product and labor market regulation issues have mixed effects on the labor share. An alternative to the econometric explanation of labor share is given in the final section.Factor Shares, Functional Income Distribution

A network-based view of regional growth

The need to better understand the mechanisms underlying regional growth patterns is widely recognised. This paper argues that regional growth is partly a function of the value created through inter-organisational flows of knowledge within and across regions. It is proposed that investment in calculative networks by organisations to access knowledge is a form of capital, termed network capital, which should be incorporated into regional growth models. The paper seeks to develop a framework to capture the value of network capital within these models based on the spatial configuration and the nature of the knowledge flowing through networks

Determinants of Stock Returns in Colombo Stock Exchange

Přestože jsou determinanty výnosů akcií ústředním tématem výzkumu ve finančnictví od roku 1960, na rozvíjejících se trzích zatím nebyly dostatečně zohledněny. Proto je hlavním účelem této studie zjistit, které faktory jsou důležité pro vysvětlení změn výnosů z akcií na colombské burze (CSE). Studie využívá 266 akcií od ledna 1995 do prosince 2008. Dále je vybrané období rozděleno do dvou dílčích period, tzv. "down-market" a "up-market". Studie zkoumá pět finančních tržních anomálií, které byly ve finanční literatuře prokázány coby souvztažné s výnosy akcií převážně na rozvinutých trzích. Tržní anomálie jsou zvyklé napodobovat faktory a jsou používány společně s faktorem přemíry výnosu trhu jako nezávislé proměnné ve vícenásobných regresích k výrobě modelů oceňování aktiv v plném rozsahu periody, stejně jako v dílčích periodách. Studie zjistila, že P/E, BTM a anomálie hybné síly na CSE přetrvávají. Nicméně, jsou závislé na situaci trhu. Kromě toho, anomálie velikosti a objemu obchodů na CSE neexistují. Studie zjistila, že determinanty výnosů akcií se také pohybují od "down-market" po "up-market". Vzhledem k nedostatku literatury v rozvíjejících se trzích, jsou závěry této studie vytvořeny prakticky stejně jako teoreticky cenná báze znalostí. Tržní anomálie mohou být použity k sestavení lepších obchodních strategií podléhajících tržním podmínkám, ve kterých anomálie existuje. Kromě toho by různé modely oceňování aktiv měly být zváženy při výpočtu ceny kapitálu, stejně jako měření výkonnosti portfolia. Teoreticky vzato, existence tržních anomálií odmítá platnost modelu oceňování kapitálových aktiv (CAPM). Dále, neexistence anomálie velikosti naznačuje, že známý třífaktorový model dle Fama a French (1993) se na CSE nevztahuje. A konečně, studie naznačuje, že modely rizikového faktoru formulovány na základě rozvinutých trhů nemusí vytvářet stejné výsledky na rozvíjejících se trzích.Although determinants of stock returns are the central theme of research in finance since 1960s, this aspect has not been sufficiently addressed in emerging markets. Therefore, the main purpose of this study is to identify which factors are important for explaining the variation in stock returns in Colombo Stock Exchange (CSE). The study uses 266 stocks from January 1995 to December 2008. Further, the sample period is divided into two sub periods as down-market and up-market. The study examines five financial market anomalies which have been proved in the financial literature to be correlated with stock returns mainly in developed markets. Market anomalies are used to form mimicking factors and they are used together with excess market return factor as independent variables in multiple regressions to generate asset pricing models in full period as well as in sub periods. The study finds that earnings-to-price, book-to-market and momentum anomalies persist in the CSE. However, they are market state dependent. In addition, size and trading volume anomalies do not exist in the CSE. The study finds that determinants of stock returns are also varying from down-market to up-market. Due to the lack of literature in emerging markets, the findings of this study generate practically as well as theoretically valuable knowledge base. Market anomalies can be used to formulate better trading strategies subject to market conditions in which anomaly exists. Furthermore, time varying asset pricing models should be considered in computation of cost of capital as well as measurement of portfolio performance. Theoretically, existence of market anomalies rejects the validity of Capital Asset Pricing Model (CAPM). Further, non-existence of size anomaly suggests that famous Fama and French (1993) three factor model is not applicable to the CSE. Finally, the study suggests that risk factor models formulated based on developed markets may not generate same results in emerging markets.Ústav financí a účetnictvíobhájen

Firm Performance and Stock Returns: The Moderating Role of Google Search Volume Index: Evidence from Companies Listed in Indonesian Sharia Stock Index

This study examines the effect of company performance on stock returns moderated by Google search volume on companies listed on the Indonesia Sharia Stock Index (ISSI). The research sample consists of companies registered with ISSI from January 1, 2020, to December 31, 2021. The results showed that the company's performance indicators, ROE and EPS, significantly positively affected stock returns. In addition, Google search volume directly impacts the increase in stock returns and positively moderates the relationship between EPS and stock returns. This research contributes to the accounting and capital market literature by looking at synergies between companies and investors' attention to Islamic stock returns, especially in times of crisis

Moderating Effect of Firm Characteristics on the Relationship Between Capital Structure and Financial Performance of Medium-sized and Large Enterprises in Kenya

The purpose of this study was to establish the moderating effect of enterprise characteristics on the relationship between capital structure and financial performance of medium-sized and large enterprises in Kenya. The study drew on secondary data consisting of audited financial statements from 60 large enterprises listed at the NSE and 30 medium-sized enterprises totaling to 90 enterprises for six year period (2011 to 2016). The objective of the study was to establish the moderating effect of enterprise characteristics on the relationship between capital structures and financial performance of medium-sized and large enterprises in Kenya. SDTAR, LDTAR and TDTET represented capital structure proxies; ROE and ROA represented financial performance while size and age represented enterprise characteristics. The study was anchored on positivism paradigm and guided by the following capital structure theories: static trade-off theory, pecking order theory and free cash flow theory. Descriptive statistics and inferential statistics were used to analyze data. Multiple regressions were applied to establish the extent of the effect of enterprise characteristics on the relationship between capital structures and financial performance while Pearson correlation was used to ascertain the moderating effect of firm characteristics on the relationship between capital structure and financial performance. The hypothesis was tested using calculated F-value and the critical value of F. The study established significant positive moderating effect of enterprise characteristics on the relationship between capital structures and financial. However, size and age reduced the explanatory powers of accounting for the variability in ROE while they increased explanatory powers for ROA. In conclusion the study found that decrease in ROE and increases in ROA were attributed to change in size and age. In improving financial performance it was recommended that enterprises invest in easily re-locatable and quality. Future studies to investigate other factors that account for variability in financial performance and other enterprise characteristics of medium-sized and large enterprises in Kenya. Keywords: capital structure, enterprise characteristics, financial performanc

In crowdfunding we trust : a trust-building model in lending crowdfunding

Trust critically affects the perceived probability of receiving expected returns on investment. Crowdfunding differs in many ways from traditional forms of investing. We have to ask what builds trust in this particular context. Based on literature regarding the formation of initial trust, we developed a model to explain which factors lead to crowdfunders’ trust in a crowdfunding project. We tested it on data collected from actual investors in a real project on a crowdlending platform. Our results show that trust in the crowdfunding platform and the information quality are more important factors of project trust than trust in the creator