Information asymmetry and capital structure: Evidence from the Chinese stock market

2021 ◽  
Author(s):  
Kung‐Cheng Ho ◽  
Yujing Gong
Keyword(s):  
Stock Market ◽  
Capital Structure ◽  
Information Asymmetry ◽  
Chinese Stock Market

Why investors use technical analysis? Information discovery versus herding behavior

2015 ◽  
Vol 5 (1) ◽  
pp. 53-68 ◽  
Author(s):  
Tiandu Wang ◽  
Qian Sun
Keyword(s):  
Stock Market ◽  
Information Asymmetry ◽  
Excess Return ◽  
Chinese Stock Market ◽  
Information Discovery ◽  
Herding Behavior ◽  
Significant Excess ◽  
Technical Trading Rules ◽  
Content Type ◽  
Empirical Results

Purpose – The purpose of this paper is to establish two competitive models to explain why investors use technical analysis (TA). Design/methodology/approach – Information Discovery Model suggests that technical traders are able to infer non-public information; Herding Behavior Model argues that TA is a kind of irrational herding behavior that can make profit when other noise traders exist. Findings – The empirical results from Chinese stock market show that some technical trading rules generate significant excess returns. Research limitations/implications – The empirical results from Chinese stock market show that some technical trading rules generate significant excess returns. Stocks with stronger information asymmetry and lower liquidity experiences higher excess return, which support the Information Discovery Model that TA is a method of information discovery for rational investors when the market is not fully efficient. Originality/value – Stocks with stronger information asymmetry and lower liquidity experiences higher excess return, which support the Information Discovery Model that TA is a method of information discovery for rational investors when the market is not fully efficient.

scholarly journals Research on Sustainable Development of the Stock Market Based on VIX Index

2018 ◽  
Vol 10 (11) ◽  
pp. 4113
Author(s):  
Lei Ruan
Keyword(s):  
Sustainable Development ◽  
Stock Market ◽  
Financial Markets ◽  
Information Asymmetry ◽  
Stock Index ◽  
Chinese Stock Market ◽  
The Sustainable Development ◽  
Financial Variables ◽  
Dynamic Copula ◽  
The Impact

The frequent occurrence of financial crises has made the dynamic linkage between international financial markets an important research topic. In the past, scholars mostly studied the correlation between financial markets directly, however ignored the impact of exogenous financial variables on financial markets. The stock market is an important part of the financial market and plays an important role in the overall economy. Information asymmetry is common and has a certain degree of impact on investors’ returns. However, many scholars believe that the problem of information asymmetry in China has seriously negatively impacted investors, forming an unsustainable state. At present, there are still many problems in the Chinese stock market, especially the stock market fraud, which brings great challenges to the sustainable development of the stock market. Based on the idea of the STCC model, it is assumed that the Copula parameter is affected by the exogenous variables and the time-varying dynamic Copula model-ST-VCopula model is established. Based on the model, the influence of market volatility (VIX index) on the stock market is explored and then the stock index data of several countries are empirically analyzed. The empirical results show that the VIX index has a significant impact on the linkage between stock markets. The VIX index is easy and more intuitive to obtain, providing another way for the dynamic linkage research between the market, which can provide investors with some guidance and advice when conducting financial activities such as diversification.

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