INVESTORS’ OVERCONFIDENCE IN THE STOCK MARKET

An investor would normally depend on technical or/and fundamental analysis to make his/her investment decision in the secondary market. But in most cases the investor may not have time to do these analyses, understand the market or stock and then make the decision, therefore, they often end up taking irrational decisions. In some cases, the investors take these irrational decisions on the basis of the overconfidence they have concerning the information they possess. These investors are termed to bear overconfidence bias. The study aims to examine the influence of overconfidence bias in the Indian stock market. The study employed Vector Autoregression (VAR) methodology and impulse response function to know how long the bias persists in the market once the overconfidence bias is influenced by the investor. The results of the study show enough evidence to point out the influence of overconfidence bias in the market and it persists for more than 110 days. The study also finds out Efficient Market Hypothesis does not hold good. Our study period includes the time period since globalization of the Indian stock market and it also covers several periods of stress including the global financial crisis of 2007–08 and COVID-19 period

INVESTORS’ OVERCONFIDENCE IN THE STOCK MARKET

An investor would normally depend on technical or/and fundamental analysis to make his/her investment decision in the secondary market. But in most cases the investor may not have time to do these analyses, understand the market or stock and then make the decision, therefore, they often end up taking irrational decisions. In some cases, the investors take these irrational decisions on the basis of the overconfidence they have concerning the information they possess. These investors are termed to bear overconfidence bias. The study aims to examine the influence of overconfidence bias in the Indian stock market. The study employed Vector Autoregression (VAR) methodology and impulse response function to know how long the bias persists in the market once the overconfidence bias is influenced by the investor. The results of the study show enough evidence to point out the influence of overconfidence bias in the market and it persists for more than 110 days. The study also finds out Efficient Market Hypothesis does not hold good. Our study period includes the time period since globalization of the Indian stock market and it also covers several periods of stress including the global financial crisis of 2007–08 and COVID-19 period

Sulfated Polysaccharide, Curdlan Sulfate, Efficiently Prevents Entry/Fusion and Restricts Antibody-Dependent Enhancement of Dengue Virus Infection In Vitro: A Possible Candidate for Clinical Application

10.1371/journal.pntd.0002188PLoS Neglected Tropical Diseases74

Does overvaluation of bidder stock drive acquisitions? The case of public and private targets

We test the implications of the Misvaluation hypothesis (Shleifer and Vishny, 2003) for a large sample of acquirers of private and public target firms. Consistent with the Misvaluation hypothesis we find that acquirers are overvalued. The overvaluation is higher for stock acquisitions of private targets. We find that the announcement period returns are lower for firms that are overvalued at the time of acquisition. Announcement period returns are lower for larger acquisitions of public targets and higher for larger acquisitions of private targets. We also examine the factors that determine stock as the method of payment. Consistent with the Misvaluation hypothesis we find that firms that have higher valuation measures at the time of acquisition tend to use stock. Acquirers of public targets tend to use stock more frequently

Do Firms Become More Conservative After Financial Restatements?

We examine whether firms\u27 earnings exhibit higher degrees of conservatism after restating their financial statements. Conservatism is defined as more timely recognition of gains than losses in earnings (Basu, 1997). Using a sample of restatements derived from the Government Accountability Office (GAO) database and four alternative measures of earnings conservatism, we find that overall the restating firms\u27 earnings exhibit greater conservatism during the two years following restatements. This increase is more pronounced for firms that self-prompt their restatements than firms that are prompted to restate by external parties such as auditors or the Securities and Exchange Commission (SEC). We also find weak evidence suggesting that the post-restatement increase in conservatism is more pronounced after the Sarbanes-Oxley Act (SOX) enactment in 2002

Do firms become more conservative after financial restatements?

We examine whether firms' earnings exhibit higher degrees of conservatism after restating their financial statements. Conservatism is defined as more timely recognition of gains than losses in earnings (Basu, 1997). Using a sample of restatements derived from the Government Accountability Office (GAO) database and four alternative measures of earnings conservatism, we find that overall the restating firms' earnings exhibit greater conservatism during the two years following restatements. This increase is more pronounced for firms that self-prompt their restatements than firms that are prompted to restate by external parties such as auditors or the Securities and Exchange Commission (SEC). We also find weak evidence suggesting that the post-restatement increase in conservatism is more pronounced after the Sarbanes-Oxley Act (SOX) enactment in 2002.financial restatements; earnings conservatism; Sarbanes-Oxley Act; SOX; earning restatements; restatement prompter.

Does offshoring create value for shareholders?

We study the wealth effect of offshoring by analyzing the announcement-period returns as well as the long-run operating and stock return performance of firms that offshored their activities in the period 2000-2005. Announcement-period stock returns are positive for firms that offshore activities primarily to reduce costs but are negative for firms that offshore activities for other reasons. Also, announcement-period stock returns are higher for firms with a larger size, better operating performance, lower growth potential, and a higher cost of goods sold in the year prior to the offshoring announcement. Firms that offshore activities primarily to reduce costs enjoy improved operating and stock return performance in the years following the offshoring. Overall, our findings indicate that not all firms enjoy the benefits of offshoring; rather, only those that offshore primarily to reduce costs do.Offshoring Announcement effect Operating performance Stock return performance

Investor protection and cross-border acquisitions of private and public targets

We examine the announcement-period acquirer returns and target values for a large sample of cross-border acquisitions by U.S. firms, differentiating between private and public targets and paying particular attention to the legal protection of minority shareholders in the target country. For high-protection target countries, acquirer announcement-period returns are significantly negative for public targets and significantly positive for private targets. For low-protection target countries, the acquirer returns are significantly positive for public targets and insignificantly different from zero for private targets. For public targets, acquirer returns are decreasing and target-firm values and acquisition premia are increasing with the level of investor protection. For private targets, investor protection does not affect acquirer returns or target-firm values. We find that bidder returns decrease with the level of creditor protection in the target country and increase with the quality of accounting standards. Our results also show that in low- protection countries, firm-level corporate governance mechanisms, such as higher insider ownership, may substitute for the lower level of investor protection.Corporate governance Cross-border acquisitions Private-target takeovers Shareholder protection

Molecular Survey of Respiratory and Immunosuppressive Pathogens Associated with Low Pathogenic Avian Influenza H9N2 Subtype and Virulent Newcastle Disease Viruses in Commercial Chicken Flocks

The study was carried out in 48 poultry flocks to elucidate the roles of various complicating pathogens involved along with Newcastle disease (ND)/ low pathogenic avian influenza (LPAI) outbreaks. Necropsy was conducted and samples were collected for the isolation of Newcastle disease virus (NDV), Influenza A virus, infectious bronchitis virus (IBV), pathogenic bacteria; molecular detection of infectious laryngotracheitis virus (ILTV), fowl adeno virus (FAV), chicken anaemia virus (CAV), Mycoplasma synoviae (MS) and Mycoplasma gallisepticum (MG). The isolation results confirmed that 18/48 flocks (37%) were positive for the presence of hemagglutinating agents. Out of 18 hemagglutination (HA) positive flocks, 11 flocks (61%) were positive for both avian influenza virus (AIV) and NDV; 4 flocks (22%) were positive for NDV; and 3 flocks (17%) were positive for AIV. Sequence analysis of hemagglutinin and neuraminidase genes of AIV revealed that all were belonging to LPAI-H9N2 subtype. Sequence analysis of F gene of NDV revealed that they belong to virulent type. The PCR results confirmed the presence of three to seven etiological agents (CAV, FAV, ILTV, MG, MS and avian pathogenic E. coli along with LPAI/NDV from all the 18 HA-positive flocks. The detection rate of triple, quadruple, quintuple, sextuple and sevenfold infections was 17% (3 flocks), 28% (5 flocks), 11%, (2 flocks) 28% (5 flocks) and 17% (3 flocks), respectively. In conclusion, the disease complex involved more than one pathogen, primarily resulting from the interplay between LPAI-H9N2 and NDV; subsequently this could be exacerbated by co-infection with other agents which may cause exacerbated outbreaks that may otherwise go undetected in field

Molecular epidemiology of nontyphoidal Salmonella in poultry and poultry products in India: implications for human health

Human infections with non-typhoidal Salmonella (NTS) serovars are increasingly becoming a threat to human health globally. While all motile Salmonellae have zoonotic potential, Salmonella Enteritidis and Salmonella Typhimurium are most commonly associated with human disease, for which poultry are a major source. Despite the increasing number of human NTS infections, the epidemiology of NTS in poultry in India has not been fully understood. Hence, as a first step, we carried out epidemiological analysis to establish the incidence of NTS in poultry to evaluate the risk to human health. A total of 1215 samples (including poultry meat, tissues, egg and environmental samples) were collected from 154 commercial layer farms from southern India and screened for NTS. Following identification by cultural and biochemical methods, Salmonella isolates were further characterized by multiplex PCR, allele-specific PCR, enterobacterial repetitive intergenic consensus (ERIC) PCR and pulse field gel electrophoresis (PFGE). In the present study, 21/1215 (1.73 %) samples tested positive for NTS. We found 12/392 (3.06 %) of tissue samples, 7/460 (1.52 %) of poultry products, and 2/363 (0.55 %) of environmental samples tested positive for NTS. All the Salmonella isolates were resistant to oxytetracycline, which is routinely used as poultry feed additive. The multiplex PCR results allowed 16/21 isolates to be classified as S. Typhimurium, and five isolates as S. Enteritidis. Of the five S. Enteritidis isolates, four were identified as group D Salmonella by allele-specific PCR. All of the isolates produced different banding patterns in ERIC PCR. Of the thirteen macro restriction profiles (MRPs) obtained by PFGE, MRP 6 was predominant which included 6 (21 %) isolates. In conclusion, the findings of the study revealed higher incidence of contamination of NTS Salmonella in poultry tissue and animal protein sources used for poultry. The results of the study warrants further investigation on different type of animal feed sources, food market chains, processing plants, live bird markets etc., to evaluate the risk factors, transmission and effective control measures of human Salmonella infection from poultry products