Commonality in Liquidity and its Determinants: An Empirical Examination of Stocks Listed on National Stock Exchange of India

2013 ◽  
Author(s):  
Sudhakar Reddy Syamala ◽  
V. N. Reddy
Keyword(s):  
Stock Exchange ◽  
Empirical Examination

Have financial statements lost their relevance? Empirical evidence from the frontier market of Kuwait

2016 ◽  
Vol 13 (2) ◽  
pp. 225-239 ◽  
Author(s):  
Mishari M. Alfraih
Keyword(s):  
Financial Reporting ◽  
Capital Market ◽  
Value Relevance ◽  
Stock Exchange ◽  
Financial Statements ◽  
Empirical Examination ◽  
Content Type ◽  
Book Value ◽  
Kuwait Stock Exchange ◽  
Reporting Environment

Purpose – Anecdotal concerns expressed regarding developed capital markets suggest that the information provided in financial statements has lost its value relevance to equity holders over time. The purpose of this paper is to investigate the issue from the perspective of Kuwait, which is a frontier market. Design/methodology/approach – Consistent with prior research, the design employs the price regression model. A total of 2,490 observations were collected from all firms listed on the Kuwait Stock Exchange (KSE) over a period of 21 years (1994-2014). Findings – Although this study documents a notable decline in both the value relevance of earnings and book value for equity holders over this period, the results suggest that the decline in the value relevance of earnings was deeper and more pronounced than that of book value. Practical implications – Because a fundamental prerequisite for the value relevance of accounting information is the quality of the financial reporting environment, the results are useful for regulators because they provide an assessment of the effectiveness of the current financial reporting environment. The results highlight the need for improvements because higher-quality information helps equity holders to determine value more precisely. As the timely dissemination of financial statements is an essential ingredient contributing to the relevance of financial statements, a direct implication of the study’s findings for the management of KSE companies is that timely reporting of financial statements may mitigate the observed decline of the value relevance of financial statements produced by KSE companies. Originality/value – This study contributes to the capital market research regarding changes in the value relevance of financial statement information through an empirical examination of a frontier capital market.

scholarly journals AN EMPIRICAL EXAMINATION OF LINKAGES AMONG KARACHI STOCK EXCHANGE AND EMERGING EQUITY MARKETS OF ASIA PACIFIC REGION

2013 ◽  
Vol 01 (02) ◽  
pp. 55-61
Author(s):  
Arshad Hassan ◽  
Khalid Mehmood Awan
Keyword(s):  
Hong Kong ◽  
Stock Exchange ◽  
Equity Markets ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Empirical Examination ◽  
Cointegration Tests ◽  
International Investors ◽  
Multivariate Cointegration

This study analyses weekly stock indices for ten equity markets of Asia pacific region for the period January 1, 2001 to June 30, 2013 to explore the long run relationship among Karachi stock exchange and Asia Pacific equity markets . These markets include Hong Kong, Singapore, Indonesia, Korea, Malaysia, Pakistan, Taiwan, India and china. Multivariate Cointegration and VAR procedures are performed to observe the long term dynamic relationships among these market Results show that Karachi stock exchange is best performing market for the period under study as it offers the highest return at relatively low risk level. Multivariate Cointegration analysis provides an evidence of a single cointegrating equation among the markets studied. The results of the bivariate Cointegration tests indicate that the Pakistani stock market is not individually integrated with any of the emerging Asia Pacific markets except Hong Kong and Taiwan. Granger causality tests reveal a casual flow from Korea, Hong Kong, Taiwan and Indian indices to Karachi stock exchange index. This unidirectional causality is indicator of lead-lag relationship amongst them. Variance decomposition analysis shows that Karachi Stock Exchange (KSE) is exogenous as most of its vibrations are explained by its own unique shocks. Above results explain that international investors can derive the benefits of portfolio diversification and any volatility in emerging Asia Pacific markets does not expose the international investors in Karachi stock exchange to any immediate threat of spill over effect.

Audit Fees And Agency Costs :, An Empirical Examination Of Companies Listed On The Amman Stock Exchange

2015 ◽  
pp. 215
Author(s):  
ميشيل سعيد سويدان ◽  
سبيكة ملحم ◽  
سوزان رسمي عبد
Keyword(s):  
Agency Costs ◽  
Stock Exchange ◽  
Audit Fees ◽  
Empirical Examination ◽  
Amman Stock Exchange

A Comparison of Reported Earnings Under Chinese GAAP vs. IAS: Evidence from the Shanghai Stock Exchange

1999 ◽  
Vol 13 (2) ◽  
pp. 91-111 ◽  
Author(s):  
Charles J. P. Chen ◽  
Ferdinand A. Gul ◽  
Xijia Su
Keyword(s):  
Stock Exchange ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting ◽  
International Accounting Standards ◽  
Empirical Examination ◽  
Accounting Earnings ◽  
The Difference ◽  
Reported Earnings

This paper reports the results of an empirical examination of the difference between earnings based on Chinese GAAP and those based on International Accounting Standards (IAS). Specifically, the study determines how current Chinese accounting standards are different from the IAS, whether these differences are systematically biased toward under- or overstated earnings, and which items from the financial statements contributed most to these differences. The findings suggest that reported accounting earnings based on current Chinese GAAP are significantly different from those based on IAS. On average, the reported earnings determined under the Chinese GAAP are 20–30 percent higher than earnings reported under IAS. After restatement, 15 percent of the B-share companies changed from a reported profit to a reported loss. The findings suggest that the differences between the two sets of earnings are caused by differences in accounting standards and financial rules, opportunistic applications of Chinese GAAP, and unusual market-wide events. An analysis of recently promulgated accounting standards indicates that the difference between the two sets of accounting earnings is likely to be significantly reduced from those reported for 1998 as a result.

scholarly journals THE IMPACT OF CORPORATE GOVERNANCE ON COST OF CAPITAL: THE CASE OF SMALL, MEDIUM, AND LARGE CAP FIRMS

2016 ◽  
Vol 12 (1) ◽  
Author(s):  
Sajid Gul
Keyword(s):  
Corporate Governance ◽  
Risk Premium ◽  
Lower Cost ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Practical Implication ◽  
Empirical Examination ◽  
Managerial Opportunism ◽  
The Impact ◽  
Practical Implications

Purpose: This study is an empirical examination of the argument that higher Corporate Governance (CG) is associated with decreased cost of capital. Methodolgy: The sample of the study comprise of 200 small, medium, and large corporate firms listed at the Pakistan Stock Exchange. Findings: The results reveal that CG and cost of capital is negatively correlated in large, medium, and small Cap firms. The result confirms the theoretical proposition of the agency theory that investors will be willing to accept a lower risk premium if firms have robust oversight mechanisms to curb managerial opportunism. In case of interaction effect the results show that in medium Cap firm’s investors demand lower cost of capital from high CG-medium ownership group. Nonetheless, pool and large Cap firms in the high CG predominant ownership group category pay higher cost of capital. The result also indicates that large and small Cap firms as compare to medium Cap firms in low CG-medium ownership category pay higher cost of capital. Further, it appears that investors demand higher cost of capital from pool and small Cap firms in low CG-predominant ownership group. Practical Implication: There are significant academic and practical implications which are briefly described in last part of the study.

scholarly journals Determinants of Profitability: Case Study of Real Estate Companies in Hochiminh Stock Exchange

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Le Duc Hoang ◽  
◽  
Dong Phan My Linh
Keyword(s):  
Real Estate ◽  
Firm Growth ◽  
Stock Exchange ◽  
Empirical Examination ◽  
Explanatory Variables ◽  
Firm Profitability ◽  
Asset Turnover ◽  
The Difference ◽  
Correlation Statistics

This study is conducting an empirical examination on the determinants of firm profitability of real estate companies listed on HOSE from 2010 to 2018. The difference from previous studies would lie in the usage of explanatory variables, the quantity of sample and the period of study. Based on data of 34 companies with 306 observations, this research methodology applies descriptive statistics, correlation statistics and regression analysis. The empirical results revealed that firm size, asset turnover, liquidity have a significant impact on firm profitability, while firm growth showed no significant effect on profitability denoted by ROA and ROE.

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