Does the Stock Market Penalise Fast-Growing Firms?

2012 ◽  
Author(s):  
Chris Brooks
Keyword(s):  
Stock Market ◽  
Fast Growing

scholarly journals Do Stock Market Risk Factors Explain Mutual Fund Returns? Evidence from Saudi Arabia

2021 ◽  
pp. 1-7
Author(s):  
Bader Alsubaiei
Keyword(s):  
Risk Factors ◽  
Saudi Arabia ◽  
Stock Market ◽  
Mutual Fund ◽  
Factor Model ◽  
Emerging Market ◽  
Market Risk ◽  
Market Volatility ◽  
Fast Growing ◽  
Oil Market

This paper examines the risk factors of the Saudi Arabian equity market using an extensive data set. The study demonstrates which risk factors explain mutual fund returns in the largest mutual fund market in the Middle East, a fast-growing economy and a major player in the oil market. This paper also assesses the global and emerging market risk factors. This study analyzes 256 equity funds that operated in Saudi Arabia from January 2006 to July 2017. Time series regression models (e.g., the CAPM, the Fama and French three-factor model and the Carhart four-factor model) are used. In addition, modified versions of the asset pricing models were applied by adding stock market volatility and oil market volatility. The results indicate that the single-factor model, representing the market portfolio, captures most of the mutual funds’ excess returns. Size, value and momentum factors do not enhance the explanatory power of mutual fund returns significantly. The emerging market risk factors capture a small portion of the return variations where most effects were explained by the market risk factor. In explaining these results, we emphasize the important implications for investors, academics and regulators to better understand the risk factors that drive fund returns in a fast-growing emerging market.

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.

Fast-Growing China's Hydropower Systems and Operation Challenges

2011 ◽  
Author(s):  
Chun-Tian Cheng ◽  
K. W. Chau ◽  
Xin-Yu Wu ◽  
Jian-Jian Shen
Keyword(s):  
Fast Growing

The Effects of Share Repurchase Announcements on Returns in the Malaysia Stock Market

2018 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Tze San Ong ◽  
Pei San Ng
Keyword(s):  
Stock Market ◽  
Abnormal Return ◽  
Small Firms ◽  
Abnormal Returns ◽  
Share Repurchase ◽  
Before And After ◽  
Positive Abnormal Return ◽  
Repurchase Announcements ◽  
Signaling Hypothesis ◽  
Firm Characteristic

This paper examines the market response surrounding the share repurchase announcements of Malaysia Listed Companies from years 2012 to 2016. One sample T-test was carried out to identify the abnormal return in the range before and after 20 days from share repurchase announcements. The result shows a significant positive abnormal return in the day of repurchase announcements and continuously until day 1 after the announcements. Multiple regression analysis was performed in order to identify the firm characteristic of share repurchase. The finding is supported with information asymmetric, which shows that stock market reacts more favorably through the repurchase announcements by small firms than large firms. This study is consistent with the signaling hypothesis that shows share repurchase announcement can be an effective tool in stabilizing the stock market in Malaysia. The finding of this study acts as a useful tool for managers and investors to improve their decisions on share repurchase announcements in Malaysia. Company’s managers can conduct share repurchase announcements that are able to make the stock market react positively in order to generate positive abnormal returns.

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