Scharding on Non-Centrally Regulated Currencies and Price Volatility

2021 ◽  
pp. 47-53
Author(s):  
Andrew Allison
Keyword(s):  
Price Volatility ◽  
Price Fluctuations ◽  
Legal Restrictions

Tobey Scharding claims that Bitcoin’s lack of a central regulator makes it open to price fluctuations. I argue that a currency not having a central regulator does not necessitate it being more volatile than centrally regulated currencies. First, I argue that Scharding’s reason for suggesting that Bitcoin is open to price fluctuations – its potential to face legal restrictions – is also faced by centrally regulated currencies. Second, I use silver in London as an example of a non-centrally regulated currency with relatively low price volatility when compared to other centrally regulated currencies showing that non-centrally regulated currencies are not necessarily more volatile.

scholarly journals Interaction between Industrial Policy and Stock Price Volatility：Evidence from China’s Power Market Reform

2018 ◽  
Author(s):  
Ye Fan ◽  
Zhicheng Zhang ◽  
Xiaoli Zhao ◽  
Haitao Yin
Keyword(s):  
Industrial Policy ◽  
Stock Prices ◽  
Stock Price ◽  
Price Volatility ◽  
Power Market ◽  
Green Energy ◽  
Market Reform ◽  
Stock Price Volatility ◽  
Price Fluctuations ◽  
The Impact

China combines green energy and industrial policy in its power market reform with various policy initiatives, including price support scheme for electricity from renewable sources and subsidies in the push for broader use of greener energy. This study focuses on the impacts of power market reform on the stock price volatility of listed power companies: 1) we use the Iterative Cumulative Sums of Squares (ICSS) algorithm to identify structural break points in stock prices; 2) we analyze the characteristics of stock price volatility based on the GARCH model; 3) we report the impact of power regulation on stock price fluctuations based on the Autoregressive Distributed Lag (ARDL) model. The result suggests three structural breaks in China’s power stock price volatility were related to the promulgation of power market reform policies. We find that industrial policies promote the reduction of power stock price fluctuations and its impact on power stock price volatility is consistent in the long run. However, our study also indicates the recent policies related to renewable energy do not have a very significant impact on the power stock market.

Japan’s Rare Earth Strategy and Price Volatility on Tobacco Cultivation: How Demand Management Worked?

2021 ◽  
Vol 7 (5) ◽  
pp. 2316-2337
Author(s):  
Bian Lu ◽  
Zhuang Xiaoyang ◽  
Zhang Jiangpeng ◽  
Liu Zhaohui
Keyword(s):  
Rare Earth ◽  
Cerium Oxide ◽  
Regime Switching ◽  
Demand Management ◽  
Price Volatility ◽  
Praseodymium Oxide ◽  
Price Fluctuations ◽  
Management Capability ◽  
Tobacco Cultivation ◽  
Japanese Companies

The two major light rare earth elements (REES) involved in Japan’s rare earth strategy: Cerium Oxide and Praseodymium Oxide, whether the price is affected by the demand management capability of the Japanese tobacco cultivation industry is the problems to be solved in this paper. For this aim, the monthly data from April 2008 to June 2017 was used to construct a model which takes into account the financial factors and demand factors for the two product by nonlinear methods, and use MSVAR model with regime-switching characteristic. The results are as follows. In general, different products have different price volatility characteristics. Even if the number of the regime is the same, the volatility connotation is different. Firstly, Cerium Oxide in the violent fluctuation regime has financial properties, and the financial properties of Praseodymium Oxide are reflected in three regime stages. Secondly, Japan’s industry factors have a significant change in the relationship between Cerium Oxide and Praseodymium Oxide to a certain extent. Among them, Information technology and tobacco cultivation Industrials as direct influencing factors have a counter-regulatory effect on the two product at certain price fluctuations, which reflects the direct demand management capabilities of Japanese companies, and Utilities and Telecommunication have a counter-regulation effect on Cerium Oxide and Praseodymium Oxide at certain price fluctuations, which reflects the indirect demand management ability of Japanese companies.

scholarly journals Firm-specific, macroeconomic factors and stock price risk for Jordanian banks

2021 ◽  
Vol 16 (3) ◽  
pp. 166-172
Author(s):  
Wasfi Al Salamat ◽  
◽  
Mohammad Q. M. Momani ◽  
Khaled Batayneh ◽  
◽  
...  
Keyword(s):  
Stock Price ◽  
Trading Volume ◽  
Price Volatility ◽  
Ordinary Least Squares ◽  
Macroeconomic Factors ◽  
Stock Price Volatility ◽  
Price Fluctuations ◽  
Price Earnings Ratio ◽  
Conventional Banks ◽  
Macroeconomic Determinants

Internal (firm-specific) and external (macroeconomic) determinants of stock price fluctuations are vital for investors seeking to invest their money in a firm’s stocks. Thus, the main aim of this study is to explore macroeconomic and firm-specific factors that influence stock price fluctuations for all conventional banks in Jordan in 2010–2019. Ordinary least squares multiple regression (panel data) is applied for data analysis. The results report that trading volume (TV), dividend yield (DY), and Gross Domestic Product (GDP) have a positive effect on stock price volatility, while stock price volatility is statistically negatively affected by return on assets (ROA), dividend payout ratio (DPR), and price-earnings ratio (PE). On the other hand, money supply (MS) does not affect stock price volatility. Paying more dividends can reduce stock risk and, in turn, reduce stock price volatility. The findings can benefit current and potential investors, firm managers, brokers, dealers, portfolio managers, regulatory bodies, policy makers, and researchers.

scholarly journals The role of news in the fluctuations of housing price

2018 ◽  
Vol 15 (3) ◽  
pp. 294-303
Author(s):  
Nazar Dahmardeh ◽  
Reza Khaki ◽  
Marziyeh Esfandiari
Keyword(s):  
Housing Market ◽  
Housing Price ◽  
Price Volatility ◽  
Annual Data ◽  
Price Fluctuations ◽  
Empirical Results ◽  
Negative News ◽  
The Impact ◽  
Do So

The main purpose of this paper is to evaluate the impact of the news on the housing price volatility in Iran. To do so, symmetric and asymmetric models such as GARCH, T-ARCH, EGARCH and APGARCH are applied by using annual data for the period 1971–2013. The empirical results confirm the asymmetric and leverage effects of news in Iran housing market. Also the impact of shocks indicates that negative news affect the housing price fluctuations further more than positive news with the same size.

scholarly journals Price Volatility Transmission in China’s Hardwood Lumber Imports

Forests ◽  
2021 ◽  
Vol 12 (9) ◽  
pp. 1147
Author(s):  
Xiudong Wang ◽  
Zhonghua Yin ◽  
Ruohan Wang
Keyword(s):  
Price Volatility ◽  
Forest Products ◽  
Tectona Grandis ◽  
Policy Implications ◽  
Conditional Correlation ◽  
Price Fluctuations ◽  
Dynamic Conditional Correlation ◽  
Volatility Transmission ◽  
Hardwood Lumber ◽  
Timber Trade

Hardwood lumber is the principal part of the global hardwood timber trade. China has become the largest importer of hardwood lumber in the world. However, China’s hardwood lumber imports are affected by price volatility. Thus, we investigated the price volatility transmission of China’s hardwood lumber imports. We aimed to detect the source, path, and intensity of the volatility transmission in China’s hardwood lumber imports, and reveal the intrinsic interactions between price volatilities. To date, there is little research on the price fluctuations of forest products. This paper provides an empirical analysis on the volatility transmission in China’s forest product imports. We selected four types of major hardwood lumber imports to China; that is, teak (Tectona grandis L.F.), merbau (Merbau), sapele (Entandrophragma), and casla (Terminalia spp.) (The Latin names of tree species are given in parentheses), and used their daily prices from 4 August 2010 to 15 April 2020. The Baba–Engle–Kraft–Kroner (BEKK) multivariate models and dynamic conditional correlation (DCC) models were employed. The empirical results indicate that there is an intrinsic relationship between the price fluctuations in China’s hardwood lumber imports. The volatility transmission chain originates from casla; it is transmitted along the casla→sapele→merbau→teak pathway. The direction of transmission is from lower prices to higher prices. The dynamic conditional correlation of each link in the chain does not exhibit any particular time trend. This suggests that volatility transmission is a crucial price mechanism in China’s hardwood lumber imports. Our findings have important policy implications for hedging timber price risks and designing timber trade policies.

scholarly journals Analysis of Indonesian and Chinese Garlic Volatility Prices

2019 ◽  
pp. 197-207
Author(s):  
Marina Ayuningtyas ◽  
Sri Hartoyo ◽  
Sri Mulatsih
Keyword(s):  
Time Series ◽  
Garch Model ◽  
Price Volatility ◽  
World Market ◽  
Food Price ◽  
Price Stability ◽  
Price Uncertainty ◽  
Price Fluctuations ◽  
Price Data ◽  
The World

The need for garlic consumption in Indonesia tends to increase without being matched by increased production, which causes Indonesia to import garlic by 95 percent of total domestic needs. Garlic imports tend to increase, causing the price of local garlic to be higher than the price of imported garlic, so consumers prefer imported garlic products over local garlic products. This causes farmers to face the risk of uncertainty (unpredictable) on prices, where price fluctuations are difficult to predict. In order to cope with price fluctuations and to maintain food price stability that remains accessible to consumers, it is necessary to conduct research on the analysis of the price volatility of garlic, so that price uncertainty can be overcome. This study aims to analyze price volatility in the garlic market in Indonesia and China using time series price data between January 2012 and September 2019. The method used is the ARCH/GARCH model. The results showed price volatility at producer level, imported garlic retailers, and the world market (China).

Predicting Stock Market Performance

2020 ◽  
pp. 1-10
Author(s):  
Thomas Plieger ◽  
Thomas Grünhage ◽  
Éilish Duke ◽  
Martin Reuter
Keyword(s):  
Stock Market ◽  
Risk Taking ◽  
Life Stress ◽  
Price Volatility ◽  
Individual Characteristics ◽  
Self Report ◽  
Financial Behavior ◽  
Market Simulation ◽  
Stock Market Performance ◽  
Risk Taking Behavior

Abstract. Gender and personality traits influence risk proneness in the context of financial decisions. However, most studies on this topic have relied on either self-report data or on artificial measures of financial risk-taking behavior. Our study aimed to identify relevant trading behaviors and personal characteristics related to trading success. N = 108 Caucasians took part in a three-week stock market simulation paradigm, in which they traded shares of eight fictional companies that differed in issue price, volatility, and outcome. Participants also completed questionnaires measuring personality, risk-taking behavior, and life stress. Our model showed that being male and scoring high on self-directedness led to more risky financial behavior, which in turn positively predicted success in the stock market simulation. The total model explained 39% of the variance in trading success, indicating a role for other factors in influencing trading behavior. Future studies should try to enrich our model to get a more accurate impression of the associations between individual characteristics and financially successful behavior in context of stock trading.

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