Public Information and Unknown Capital Market Participants

2011 ◽  
Author(s):  
Christian Hofmann ◽  
Andreas Loeffler
Keyword(s):  
Capital Market ◽  
Public Information ◽  
Market Participants

The Capital Market Authority Effectiveness in the Regulation of Financial Markets perspectives from the financial sector actors

2012 ◽  
Vol 02 (11) ◽  
pp. 15-24
Author(s):  
Charles Kombo Okioga
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Markets ◽  
Capital Market ◽  
Financial Regulation ◽  
International Standards ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Market Participants ◽  
New Business

Capital Market Authority in Kenya is in a development phase in order to be effective in the regulation of the financial markets. The market participants and the regulators are increasingly adopting international standards in order to make the capital markets in sync with those of developed markets. New products are being introduced and new business lines are being established. The Capital Markets Authority (Regulator) is constantly reviewing existing regulations and recommending changes to regulate the market properly. Business lines and activities are being harmonized by market participants to provide a one stop solution in order to meet the financial and securities services needs of the investors. The convergence of business lines and activities of market intermediaries gives rise to the diversity of a firm’s business operations to meet multiplicity of regulations that its activities are subject to. The methodology used in this study was designed to examine the relationship between capital markets Authority effective regulation and the performance of the financial markets. The study used correlation design, the study population consisted of 30 employees in financial institutions regulated by Capital Markets Authority and 80 investors. The study found out that effective financial market regulation has a significant relationship with the financial market performance indicated by (r=0.571, p<0.01) and (r=0.716, p≤0.01, the study recommended a further research on the factors that hinder effective financial regulation by the Capital Markets Authority.

scholarly journals Macroeconomic News, Order Flows, and Exchange Rates

2008 ◽  
Vol 43 (2) ◽  
pp. 467-488 ◽  
Author(s):  
Ryan Love ◽  
Richard Payne
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Public Information ◽  
Relevant Information ◽  
Order Flow ◽  
Macroeconomic News ◽  
Market Participants ◽  
Macroeconomic Announcements ◽  
Information Assimilation ◽  
Micro Level

AbstractIn textbook models of exchange rate determination, the news contained in public information announcements is directly impounded into prices with there being no role for trading in this process of information assimilation. This paper directly tests this theoretical result using transaction level exchange rate return and trading data and a sample of scheduled macroeconomic announcements. The main result of the paper is that even information that is publicly and simultaneously released to all market participants is partially impounded into prices via the key micro level price determinant—order flow. We quantify the role that order flow plays and find that approximately one third of price-relevant information is incorporated via the trading process.

scholarly journals Examination of the Notes to the financial statement through the example of enterprises engaged in sports activities

Economica ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 61-66
Author(s):  
Veronika Fenyves ◽  
Dóra Kerezsi ◽  
Éva Bácsné Bába ◽  
Krisztina Dajnoki ◽  
Zoltán Bács ◽  
...  
Keyword(s):  
Risk Assessment ◽  
Balance Sheet ◽  
Public Information ◽  
Numerical Data ◽  
Financial Statement ◽  
Efficient Operation ◽  
Market Participants ◽  
Primary Activity ◽  
A Company ◽  
Sports Activities

In the globalized and accelerated world of our time, it is essential that enterprises have up-to-date information. Only a company that is in possession of the necessary information is able to meet the challenges of business life. One source of public information might be the annual statement prepared and published in accordance with the stipulations of Act C of 2000. The annual statement consists of three parts: the balance sheet, the profit and loss account and the notes to the financial statement. The text-based information of the notes to the financial statement are for the more accurate interpretation of numerical data. The notes to the financial statement of certain market participants (consumers, suppliers, competitors, etc.) might support efficient operation of companies, their proper decision-making and risk assessment. In present study, the notes to the financial statement of companies identifying sports activities (Hungarian NACE 931) as their primary activity were utilized. By means of text mining, it was examined what information these notes to the financial statement include from amongst the mandatory information required by the Accounting Act.

scholarly journals Legal support of Ukraine in the context of attracting capital by banks in international m

2021 ◽  
Vol 1 (2) ◽  
Author(s):  
Olena Yu. Volkovych ◽  
Keyword(s):  
European Union ◽  
Economic Crisis ◽  
Capital Market ◽  
Banking Sector ◽  
Public Information ◽  
Commercial Banking ◽  
The State ◽  
The European Union ◽  
Association Agreement ◽  
The Capital Market

The article provides a theoretical and legal analysis of the legal support of Ukraine in the context of raising capital by banks in international markets. The author determined that the economic crisis in the country is protracted, the capital market in Ukraine remains largely underdeveloped. The state has taken many steps to overcome the economic crisis, identified priority measures, strategic steps to build a sustainable economy, in particular, many efforts have been made to find free funds to attract investment, but this, as practice shows, was not enough. An important step in building a free and competitive state was the adoption of the Association Agreement between Ukraine and the European Community. This document is the largest international legal document in the history of Ukraine and the largest international agreement with a third country ever concluded by the European Union. In accordance with the Program of Integration of Ukraine into the European Union (hereinafter - the Program), approved by the Decree of the President of Ukraine � 1072/2000 of 14.09.2000. Synchronization of internal market transformations of changes in the processes of EU enlargement. First of all, it concerns: reform of executive and judicial bodies and cooperation of the Ministry of Justice of Ukraine with courts; administrative and territorial reform; formation of the foundations of regional development policy (including legislation on the distribution of competencies, budgets, taxes); completion of privatization (primarily enterprises of strategic importance for the economy and security of the state and banks); reforming the banking sector as a whole. Thus, in particular, a developed capital market is usually seen as a competitor in the commercial banking sector, as they compete for retention and investment opportunities. However, in today�s financial system, there are complementary relationships between the capital market and banks, as they choose different segments of the financial markets and focus on different types of customers. In the process of writing the article came to the following conclusions. The right direction in the reform of the economic sector is to determine the measures of state investment support should be preceded by a detailed analysis of the effect of the benefits and preferences previously granted to economic entities. Establish the legislative level the provision that the minimum amount of public investment should be equal to the amount of all new debt, i.e., the amount of borrowings during the year may not exceed the amount of budget expenditures to finance investments. Introduce the practice of developing and implementing investment incentive packages. Introduce a practice in which the decision on new borrowings is preceded by public information on which projects have already been used to finance the funds and for which purposes (projects) new borrowings are envisaged. Establish strict control over debt activities.

scholarly journals Differences in Investment Concepts between Chinese and Western Investors from the Cultural Perspective

2021 ◽  
Vol 2 (6) ◽  
Author(s):  
Zhiming Gong
Keyword(s):  
Cultural Differences ◽  
Capital Market ◽  
Public Information ◽  
Cultural Perspective ◽  
Short Term ◽  
The West ◽  
Independent Decision ◽  
Investment Portfolios ◽  
The Capital Market

The investment concept, reflecting the investor's investment purpose and willingness, is a value that embodies the investor's investment personality characteristics, prompts investors to carry out investment analysis, judgment, decision-making, and guides investor behaviors. Due to different maturity of the capital market in China and Western countries, there are many differences in the regulatory level, cultural and behavioral patterns of the supervision and management departments of the capital market between Chinese and Western investment philosophy. This article analyzes the differences in investment ideas between Chinese and Western investors from the culture perspective. This thesis studies on the basis of four cultural differences: "The Golden Mean" and "Interest Maximization"; the face-culture and individualism; rule of man and rule of law; and gambler psychology and adventure spirit. Based on these four aspects of cultural differences, four different investment concepts of Chinese and Western investors are analyzed: long-term investments and short-term speculation; "Herd Effect" and independent decision; grapevines and public information; and leveraged trading and allocation of funds. This thesis adopts several cases to analyze the differences between Chinese and Western investors in financial products such as stocks, gold, and futures, and in investment behavior such as the long-term investment, short-term speculation, leveraged trading, and investment portfolios. With cultural differences between China and the West probed into, the differences between Chinese and Western investors' investment concepts are justified. It is hoped that this effort will help investors deepen the understanding of the capital markets in China and the West, enable Chinese investors to learn the Western mature investment concepts, and facilitate the regulators to manage the capital market effectively.

scholarly journals Value Relevance Of Voluntary Human Capital Disclosure: European Evidence

2016 ◽  
Vol 32 (6) ◽  
pp. 1555
Author(s):  
Mohamed A. Elbannan ◽  
Omar Farooq
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Capital Market ◽  
Value Relevance ◽  
Labor Cost ◽  
Cost Information ◽  
Market Participants ◽  
Pricing Decisions ◽  
Human Resource Strategy ◽  
European Markets

This study examines the value relevance of voluntary human capital disclosure (VHCD) in 32 European markets during the period between 1997 and 2012. VHCD allows capital market participants to evaluate the intellectual capital of disclosing firms by allowing them to assess the competitiveness of firm’s human resource strategy and the productivity of workforce vis-à-vis the benchmark. The results provide strong evidence suggesting that market participants consider VHCD to be value relevant and incorporate changes in labor cost information into their pricing decisions. 

scholarly journals Peranan Sistem Informasi dengan Online Trading terhadap Pertumbuhan Pasar Modal di Indonesia

2013 ◽  
Vol 4 (2) ◽  
pp. 803
Author(s):  
Riswan Efendi Tarigan
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Community Involvement ◽  
Supply And Demand ◽  
National Development ◽  
Market Participants ◽  
Online Trading ◽  
Efficient Information ◽  
The Capital Market

Capital Markets is part of the financial market, which is related to the supply and demand of the need for long-term funding. Capital Markets was formed and developed with aims to support the implementation of national development in order to improve the distribution, growth, and stability of the national economy towards the improvement of society welfare. However, so far the capital market in Indonesia is still around 0.5% of the total population which is too small compared to capital markets in other advanced countries. One solution for increasing community involvement in the capital market, despite educating in smart and sustainable way, is developing and implementing efficient information systems, so that made it easier for market participants to undertake investment activities. This paper examines how and to what extent the role of information system enhances the capital market in Indonesia, which aims to plan the subsequent strategic step so that the development of Indonesia’s capital market is able to compete in globalmarket.

scholarly journals PENGUKURAN PEMILIHAN SAHAM DAN PENETAPAN WAKTU MENGGUNAKAN MODEL TREYNOR-MAZUY PADA REKSADANA SYARIAH DI INDONESIA

ETIKONOMI ◽  
2013 ◽  
Vol 12 (1) ◽  
Author(s):  
Anita Anita
Keyword(s):  
Capital Market ◽  
Mutual Fund ◽  
Public Information ◽  
Positive Contribution ◽  
Stock Selection ◽  
Negative Contribution ◽  
Examination Result ◽  
Timing Ability ◽  
Investment Manager ◽  
Autoregressive Conditional Heteroscedasticity

This research aims is to evaluate performance of sharia mutual fund in Indonesia by assessing investment manager’s ability and by inserting public information for considering investment in capital market. This research uses Treynor-Mazuy’s model  that is in turn developed by Ferson-Walther’s model  for conditional version. The statistic method to test on this study are Multiple Regression and Autoregressive Conditional Heteroscedasticity (ARCH). Based on examination result of two sharia equity mutual fund data shows that stock selection ability of investment manager give a positive contribution to the fund returns, while market timing ability give a negative contribution to fund returns. , and public information that is relied on in making decision for investment of Sharia capital market is information about changes of exchange rate.DOI: 10.15408/etk.v12i1.1898

Causes and consequences of voluntary assurance of CSR reports

2019 ◽  
Vol 32 (8) ◽  
pp. 2451-2474 ◽  
Author(s):  
Peter Clarkson ◽  
Yue Li ◽  
Gordon Richardson ◽  
Albert Tsang
Keyword(s):  
Capital Market ◽  
Corporate Sustainability ◽  
Objective Measure ◽  
Market Valuation ◽  
Net Benefit ◽  
Content Type ◽  
Accounting Firm ◽  
Market Participants ◽  
Big 4 ◽  
The Impact

Purpose The purpose of this paper is twofold. First, the authors investigate a firm’s decision to provide a CSR report, and if so, whether to have the report assured and to seek higher quality assurance as reflected through the choices of the scope of the assurance and type of assurer, Big 4 accounting firm vs specialist consultant. Second, the authors investigate the impact of voluntary assurance of CSR reports, assurance scope and type of assurer on the likelihood of inclusion in the DJSI and on market valuation. Design/methodology/approach The study’s sample consists of 17,050 firm-year observations from 40 countries with CSR reports available from Corporate Register and ESG metrics available from ASSET4 over the period 2009–2015. The study first empirically examines the associations between CSR commitment and each of CSR report provision, CSR report assurance, assurance scope and type of assurer. It then examines that association between both inclusion in the DJSI and market valuation with each of CSR report assurance, assurance scope and type of assurer, using inclusion in the DJSI as an objective measure of a firm’s reputation for sustainability given its recognition as a leading indicator for corporate sustainability and market valuation as a reflection of the broader set of capital market participants. Findings The authors establish two key findings consistent with the predictions of signaling theory. First, we show that high CSR commitment firms are more likely to: provide standalone CSR reports; obtain assurance; obtain assurance from a Big 4 accounting firm; and, adopt higher assurance scope. Second, the authors find that both CSR report assurance and assurance scope increase the likelihood of inclusion in the DJSI, but that the type of assurance provider does not. Alternatively, the authors find that capital market participants appear to value the provision of a CSR report only when it is assured by a Big 4 accounting firm. Originality/value The results in the existing literature exploring the capital market benefits to CSR Assurance have been mixed. Firms that voluntarily obtain CSR Assurance incur a cost in doing so and must perceive a net benefit from obtaining such assurance. Despite the limited guidance currently provided by existing CSR standards, we establish the existence of benefits to obtaining CSR Assurance in terms of enhanced likelihood of DJSI inclusion and, more generally, enhanced market valuation. The discussions with DJSI analysts indicate that CSR assurance does enhance the perceived reliability of CSR data, thus improving user confidence.

scholarly journals Key Audit Matters for Production-To-Order Industry and Conservatism

2020 ◽  
Vol 8 (1) ◽  
pp. 5
Author(s):  
Chang-yeol In ◽  
Taeheung Kim ◽  
Sambock Park
Keyword(s):  
Capital Market ◽  
Corporate Sustainability ◽  
Financial Statements ◽  
Future Studies ◽  
Market Participants ◽  
The Past

In this study, the effects of key audit matters (KAMs), one of the measures recently introduced to improve accounting transparency in the production-to-order industry in terms of corporate sustainability, are examined. After the introduction of KAMs, auditors should publicly disclose key audit matters that had been internally judged in the past. In cases where these are missing or misunderstood, the range of the auditor’s liability may increase. Thus, from the viewpoint of the auditor, the description of KAMs can be recognized as the disclosure of internal judgments and an increase in the risk of litigation. It is judged that, to this end, auditors will perform their auditing work more conservatively in cases where they should describe KAMs. The results of analysis of companies to which KAMs are applied indicate that auditors carried out audits more conservatively for such companies. As such, the result can be interpreted as indicating that, due to the introduction of KAMs, auditors evaluate their risk highly and carry out audits more conservatively in order to reduce the risk. This study is meaningful in that it empirically analyzes the effects of the introduction of the recently implemented KAMs. In addition, this study provides implications for enterprises that prepare financial statements, supervisory institutions that conduct supervision, auditors, and capital market participants, as it presents the finding that, with the introduction of KAMs, auditors perform their work with more conservative perspectives. In addition, the findings of this study provide a basis for future studies on KAMs.

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