Does Analyst Coverage Affect Share Price Informativeness of Chinese Listed Firms?

2013 ◽  
Author(s):  
Rong Ding ◽  
Wenxuan Hou ◽  
Jing-Ming Kuo ◽  
Edward Lee
Keyword(s):  
Share Price ◽  
Price Informativeness ◽  
Analyst Coverage ◽  
Listed Firms

Share price informativeness and dividend smoothing behavior in GCC markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Razaz Felimban ◽  
Sina Badreddine ◽  
Christos Floros
Keyword(s):  
Private Information ◽  
Developed Countries ◽  
Share Price ◽  
Price Informativeness ◽  
Content Type ◽  
Share Prices ◽  
Listed Firms ◽  
Gcc Countries ◽  
Study Results ◽  
Dividend Smoothing

PurposeThis paper examines the dividend smoothing (DS) behaviour in the Gulf Cooperation Council (GCC) countries in emerging markets where the response to news and the economic environment are different from those of developed countries.Design/methodology/approachThe authors examine the effect of share price informativeness on DS in the GCC markets using unbalanced panel data for a sample of 628 GCC-listed firms during 1994–2016. For the regression analysis, the hypotheses are tested using panel regressions and generalised method of moments (GMM) estimation.FindingsFirst, the Lintner model shows that the DS degree in GCC firms is comparable to that of a developed market. Second, and importantly, the results reveal that the DS in GCC firms is sensitive to private information of share prices. Finally, the findings indicate that information asymmetry (IA) and agency-based models affect the tendency to smooth dividends in the GCC markets.Originality/valueThis study is the first study to measure the degree of DS using data for all GCC countries. The authors also identify other determinants of DS behaviour and test the agency and IA explanations for DS in GCC-listed firms. The findings are highly recommended to financial managers and analysts dealing with the GCC markets. This study helps financial analysts to use the share price informativeness as an indicator for the presence of the IA. The study results are beneficial to researchers in understanding the relationship between DS and share price informativeness.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

Australian Biotechnology: A 10-Year Study of Investor Performance

2021 ◽  
Vol 26 (4) ◽  
Author(s):  
Peter L. Molloy ◽  
Lester W. Johnson ◽  
Michael Gilding
Keyword(s):  
Drug Development ◽  
Global Financial Crisis ◽  
Critical Mass ◽  
Share Price ◽  
Annual Growth Rate ◽  
Compound Annual Growth Rate ◽  
Listed Firms ◽  
Investor Returns ◽  
The Global Financial Crisis ◽  
The Impact

A recent study assessed the investor performance of the Australian drug development biotech (DDB) sector over a 15-year period from 2003 to 2018. The current study builds on that research and extends the analysis to 2020, using a 10-year period starting 2010, to exclude the impact of the global financial crisis in 2008/09. Based on a value-weighted portfolio of all 41 DDB firms, the overall sector delivered a negative annualized return of -4.1%. Individual firm performance was also assessed using the compound annual growth rate (CAGR) in share price over the period as a measure of investor outcomes. On this basis 68% of firms produced negative CAGRs over the period, and of the 32% of firms that produced positive CAGRs, six firms produced CAGRs greater than 20% per annum and in three cases of recently-listed firms, the CAGR’s were greater than 50%. Overall however, the sector overall delivered very poor investor returns and despite a relatively large number of listed biotech firms, Australian biotechnology continues to be small and weak in terms of its contribution to global biotechnology industrialization. As such it lacks the critical mass to grow a robust bioeconomy based on drug development, which remains the standard-bearer of biotechnology industrialization.

scholarly journals Firm Performance and Corporate Social Environmental Initiatives in the Wake of a Health Pandemic

2020 ◽  
Vol 11 (6) ◽  
pp. 211
Author(s):  
Osereme Omoike ◽  
Uwalomwa Uwuigbe ◽  
Philip Alege ◽  
Bukola Uwuigbe ◽  
Osazuwa Peter Nosakhare ◽  
...  
Keyword(s):  
Comparative Analysis ◽  
Stock Exchange ◽  
World Health Organisation ◽  
Share Price ◽  
World Health ◽  
Environmental Reporting ◽  
Significant Drop ◽  
Listed Firms ◽  
Social Environmental ◽  
Corporate Social

The study re-examines the relationship between firm share price performance and Corporate Social Environmental Reporting (CSER) initiatives in the wake of a global health pandemic. A comparative analysis was done between the contributions made by listed and non-listed firms in Nigeria towards the pandemic. A comparative analysis of the share price (SP) of listed companies was carried out before the announcement of the pandemic, after the announcement of the pandemic and COVID -19 contributions. A panel regression analysis was conducted. It involved a sample of 70 listed firms in the Nigerian Stock Exchange over a five-year period (2013-2017). The comparative analysis of contributions revealed that listed firms though fewer in number made significantly more contributions than unlisted firms. The study found significant drop in SP after the announcement of a pandemic by the World Health Organisation (WHO). The study also found that SP performance and firm size has a positive and significant relationship with CSER initiatives. The analysis of contributors from listed and non- listed firms in Nigeria towards COVID-19 reveal that only corporate organizations with adequate resource slack can make significant contributions to curtail the spread of the epidemic. The study recommends that corporate organizations should pursue financial capacity in other to make significant CSER investments and expect a change in societal demands and stakeholder expectations in the no distant future.

scholarly journals Do Analysts Follow Managers Who Switch Companies? An Analysis of Relationships in the Capital Markets

2013 ◽  
Vol 89 (2) ◽  
pp. 451-482 ◽  
Author(s):  
Francois Brochet ◽  
Gregory S. Miller ◽  
Suraj Srinivasan
Keyword(s):  
Capital Markets ◽  
Data Availability ◽  
Professional Relationships ◽  
Matched Sample ◽  
Regulation Fair Disclosure ◽  
Analyst Coverage ◽  
Listed Firms ◽  
Fair Disclosure ◽  
Carry Over ◽  
Selective Disclosure

ABSTRACT We examine the importance of professional relationships developed between analysts and managers by investigating analyst coverage decisions in the context of CEO and CFO moves between publicly listed firms. We find that top executive moves from an origin firm to a destination firm trigger analysts following the origin firm to initiate coverage of the destination firm in 10 percent of our sample, which is significantly higher than in a matched sample. Analyst-manager “co-migration” is significantly stronger when both firms are within the same industry. Analysts who move with managers to the destination firm exhibit more intense and accurate coverage of the origin firm than they do in other firms and compared to other analysts covering the origin firm. The advantage no longer holds after the executive's departure, and most of the analysts' advantage does not carry over to the destination firm. However, the analysts do increase the overall market capitalization of firms in their coverage portfolio. Our results hold after Regulation Fair Disclosure, suggesting that these relationships are not based on selective disclosure. Overall, the evidence shows both the importance and limitations of professional relationships in capital markets. Data Availability: Data are publicly available from sources identified in the article.

scholarly journals Determinants of Share Price of Listed Firms in Ghana

2021 ◽  
Vol 2021 (1) ◽  
pp. 57-71
Author(s):  
Alhassan Musah ◽  
Margaret Aryeetey
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Financial Institution ◽  
Stock Exchange ◽  
Share Price ◽  
Return On Equity ◽  
Macroeconomic Variables ◽  
Listed Firms ◽  
Earnings Per Share ◽  
Ghana Stock Exchange

The price of a company’s share represents investors’ confidence in the future profitability of the company and also used to represent the value of shareholders’ wealth The study examined factors that influence share price of firms listed on the Ghana stock Exchange. The study specifically examined firm specific factors, book ratios and macroeconomic factors that influence share price of listed firms in Ghana. The firm-specific variables include firm size and the firm being a financial institution. The book ratios used in the study include earnings per share, debt ratio, return on assets, return on equity and dividend per share. The macroeconomic variables include economic growth, inflation rate and interest rate. The study sampled 21 firms over a 10-year period, from 2009 to 2018. The study used descriptive statistics, correlation analysis and panel regression analysis to achieve the objectives of the study. The results of the study show that firm-specific variables such as firm size and the firm being financial institution were positive and statistically significant determinants of share price of listed firms in Ghana. The book ratios of debt to asset ratio, return on asset and return on equity were statistically insignificant association with share price of firms listed on the Ghana Stock Exchange. Other book ratios, such as earnings per share and dividend per share, were positively associated and statistically significant with share price of the sampled firms listed on the Ghana Stock Exchange. On the macroeconomic variables, only economic growth was positively associated with share price and statistically significant at 10% significance level. The other variables – inflation and interest rate – were statistically insignificant. The results show that book or investment ratios are the main determinants of share price for firms listed on the Ghana Stock Exchange.

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