On the significance of the economic determinants of systematic risk: empirical evidence with Finnish data

1991 ◽  
Vol 1 (2) ◽  
pp. 97-104 ◽  
Author(s):  
Teppo Martikainen
Keyword(s):  
Empirical Evidence ◽  
Systematic Risk ◽  
Economic Determinants

scholarly journals Does Equity Derivatives Trading Affect the Systematic Risk of the Underlying Stocks in an Emerging Market: Evidence from Pakistan’s Futures Market

2013 ◽  
Vol 18 (1) ◽  
pp. 63-80 ◽  
Author(s):  
Safi Ullah Khan ◽  
Zaheer Abbas
Keyword(s):  
Empirical Evidence ◽  
Emerging Market ◽  
Systematic Risk ◽  
Estimation Procedure ◽  
Futures Market ◽  
Control Group ◽  
Index Futures ◽  
Market Effects ◽  
Underlying Stocks ◽  
Single Stock Futures

This paper examines the behavior of beta coefficients (systematic risk) for underlying stocks around the introduction of single-stock futures (SSFs) contracts in the Pakistani market, by employing models that account for nonsynchronous and thin trading and varying market conditions as “bull” and “bear” markets. Unlike the results of earlier studies on US markets, the empirical evidence tends to support a decline in systematic risk for the majority of underlying stocks in the post-futures listings period. Nevertheless, similar to SSFs stocks, we also find empirical evidence of a decrease in systematic risk for many of the control group stocks. This indicates that changes in beta estimates for SSFs-listed stocks might not be induced by the introduction of SSFs contract trading, but could be attributed to other market-wide or industry changes that have affected the overall market. Several plausible reasons, such as lack of program trading activities normally associated with index futures, market microstructure differences between developed markets and a developing market such as Pakistan, and the capturing of the “bear” and “bull” market effects on stock betas in our estimation procedure could explain these different results for Pakistan’s market.

Economic vs. Non-Economic Determinants of Diversification and Specialisation in Agriculture

2012 ◽  
Vol 1 (1) ◽  
pp. 12-28
Author(s):  
Daniel E. May ◽  
Graham J. Tate ◽  
Leslie Worrall
Keyword(s):  
Sugar Beet ◽  
Empirical Evidence ◽  
Probit Analysis ◽  
Strategic Choices ◽  
Social Psychological ◽  
Psychological Variables ◽  
Economic Determinants ◽  
The Uk ◽  
Economic Considerations ◽  
The Eu

Empirical evidence from the sugar sector of the UK has revealed that farmers in this sector adjusted to the EU reform of the Sugar Regime either by diversifying production or by specialising in a small number of crops. This article hypothesises that these strategic choices were influenced by a number of economic and non-economic drivers. A probit analysis conducted with a sample of ex-sugar beet farmers was used to test this hypothesis. The result showed that only non-economic drivers (i.e., social-psychological variables) were significant in explaining the strategic choices made by the farmers. This suggests that traditional analyses based purely on economic considerations have to be considered with caution.

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