scholarly journals The Impact of Trading Floor Closure on Market Efficiency: Evidence from the Toronto Stock Exchange

2013 ◽  
Author(s):  
Karel Hrazdil ◽  
Dennis Y. Chung
Keyword(s):  
Market Efficiency ◽  
Stock Exchange ◽  
Toronto Stock Exchange ◽  
The Impact

An Empirical Research of Impact of the Merger of Pan-European and Oslo Stock Exchanges on the Efficiency of Tobacco Securities Market

2021 ◽  
Vol 7 (4) ◽  
pp. 568-587
Author(s):  
Dongpeng Xu ◽  
Deqin Lin ◽  
Dan Zhang
Keyword(s):  
Market Efficiency ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Secondary Market ◽  
Securities Market ◽  
Stock Exchanges ◽  
Market Returns ◽  
Market Theory ◽  
Efficient Market Theory ◽  
The Impact

Objectives: Europe is one of the important markets for traditional tobacco. We analyzed the impact of exchange consolidation on securities market efficiency, so as to enable tobacco enterprises to improve the financing efficiency of the stock market and carry out transformation and upgrading. Methods: In this work. We’re based on efficient market theory, the merger of Pan-European Stock Exchange and Oslo Stock Exchange, Norway in June 2019 is analyzed through empirical analysis. The logarithmic returns of 25 listed companies in the Oslo Stock Exchange OBX-25 index were analyzed using OLSN Chow and KPSS tests. Results: It is found that of 72% of securities, the explanatory power of market returns for securities returns is increased, which shows significant improvement in market efficiency. The merger of stock exchanges can indeed improve the market efficiency. In addition, through the KPSS test, it is found that the merger of stock exchanges can improve the market efficiency. As time goes by, however, the validity decreases. Conclusion: The improvement of the efficiency of the securities market will be conducive to the financing efficiency of listed tobacco companies in the secondary market, promote the transformation of enterprises, and contribute to the tobacco control and the health of the population in Europe.

scholarly journals The Impact of Audit Committee Characteristics on Earnings Management: A Canadian Case Study

2015 ◽  
Vol 2 (1) ◽  
pp. 68
Author(s):  
Lynda Ioualalen ◽  
Hanen Khemakhem ◽  
Richard Fontaine
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
Stock Exchange ◽  
Empirical Test ◽  
Control Group ◽  
Toronto Stock Exchange ◽  
Financial Expertise ◽  
The Impact

The objective of this study was to analyze the impact of three Audit Committee (AC) characteristics, financial expertise, diversity and activism on aggressive earnings management. We hypothesized that these AC characteristics are negatively related to aggressive earnings management. To test or hypothesis, we conducted an empirical test with a sample of 10 Canadian corporations listed on the Toronto stock exchange: 5 companies that were accused of aggressive earnings management and 5 other corporations used as a control group. We analyzed the 5-year period prior to the accusation (1999-2003). We measured earnings management by the level of discretionary accruals (using the modified Jones model (1995). Our results show that activism and the financial expertise of AC members are negatively related to aggressive earnings management; however, we did not find a significant relationship between diversity and aggressive earnings management. These results contribute to help governance oversight organizations identify AC characteristics that have the most influence on the detection of aggressive earnings management, which could help agencies develop and enforce methods to detect and reduce aggressive earnings management practices.

scholarly journals The impact of domestic portfolio diversification strategies in Toronto stock exchange on Canadian textile manufacturing industry

2020 ◽  
Vol 71 (03) ◽  
pp. 215-222
Author(s):  
ABDULLAH EJAZ ◽  
RAMONA BIRAU ◽  
CRISTI SPULBAR ◽  
RAMONA BUDA ◽  
ANDREI COSMIN TENEA
Keyword(s):  
Textile Industry ◽  
Manufacturing Industry ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Correlation Coefficients ◽  
Portfolio Diversification ◽  
Toronto Stock Exchange ◽  
Textile Manufacturing ◽  
Diversification Strategies ◽  
The Impact

The aim of this research study is to examine the impact of domestic portfolio diversification strategies in Toronto Stock Exchange (TSX) on Canadian textile manufacturing industry in order to obtain attractive investment opportunities. Dissipation of benefits of globally diversified portfolios due to overwhelming convergence among the international and regional stock markets around the globe have given rebirth to the idea of domestic portfolio diversification particularly after the global financial crisis of 2008. Textile industry in Canada is challenging but can achieve higher performance based on Toronto Stock Exchange behavior. Therefore, this is a complex applied research focused on investigating TSX as standalone stock market for domestic diversification opportunities. For this purpose, correlation coefficients, pairwise cointegration, multiple cointegration and causality of sectors in TSX have been examined. The empirical results show that majority of the sectors in TSX do not share high correlation with each other and they are also not highly cointegrated. These empirical findings indicate that TSX presents attractive opportunities for domestic portfolio diversification.

Decimalization of Stock Exchanges

2011 ◽  
pp. 165-180
Author(s):  
Bin Chang
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
New York Stock Exchange ◽  
Tick Size ◽  
Toronto Stock Exchange ◽  
Bid Ask Spread ◽  
Limit Orders ◽  
York Stock Exchange ◽  
The Impact

Technological innovation is propelling the move in financial markets away from fractional trading and towards decimal trading, as in the example of The New York Stock Exchange (NYSE) tick size changed from $1/16 to $0.01 on January 29, 2001. This chapter examines the impact of that trend as it relates to market quality and trading behaviour, and draws on comparisons between NYSE and NASDAQ, as well as evidence from other markets and market-traded securities, in demonstrating how decimalization leads to a decrease in the bid-ask spread and depth and an improvement in the probability of information-based trading, while having seemingly no effect on the frequency of limit orders. Our examination also demonstrates how the 1996 decimalization of the Toronto Stock Exchange (TSX, formerly TSE) has had little impact on its giant competitor, NYSE.

scholarly journals Not All Sparks Light a Fire: Stakeholder and Shareholder Reactions to Critical Events in Contested Markets

2017 ◽  
Vol 62 (3) ◽  
pp. 561-597 ◽  
Author(s):  
Sinziana Dorobantu ◽  
Witold J. Henisz ◽  
Lite Nartey
Keyword(s):  
Gold Mining ◽  
Stock Exchange ◽  
Critical Mass ◽  
Market Value ◽  
Critical Event ◽  
Critical Events ◽  
Prior Beliefs ◽  
Toronto Stock Exchange ◽  
History Of ◽  
The Impact

This paper examines when and how a critical mass of social and political stakeholders mobilizes against a corporate organization and the impact of such mobilization on the organization’s market value. Our study employs a dataset of more than 51,000 media-reported events describing the interactions among almost 2,300 political, social, and economic stakeholders and 19 gold-mining firms trading on the Toronto Stock Exchange and operating mines in emerging markets around the world. We first examine the conditions and dynamics that explain whether an isolated, stakeholder-initiated negative statement or action—a “spark” or critical event—goes unnoticed or escalates into a cascade of stakeholder reactions targeting the firm. Second, we examine whether such sparks and the ensuing cascades of stakeholder reactions affect shareholders’ valuation of the firm. We argue and show empirically that both stakeholders’ and shareholders’ reactions following critical events are largely influenced by stakeholders’ prior beliefs about the target organization and by peer stakeholders’ reactions to the critical event. Stakeholders with positive beliefs about the firm before the critical event mobilize to defend it, and those with negative prior beliefs reinforce their opposition. Shareholders also take note of the other stakeholders’ prior beliefs and react negatively to critical events if the firm has a history of conflict with its stakeholders. Thus unconnected or loosely connected stakeholders who reveal their beliefs about a firm through public statements and actions influence each other’s reactions to critical events and shareholders’ assessments of the firm’s value.

scholarly journals Effect of Policy Reforms on Market Efficiency: Evidence from Dhaka Stock Exchange

2011 ◽  
Vol 2011 ◽  
pp. 1-8 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Shakila Yasmin ◽  
Mahmudur Rahman ◽  
Md. Gazi Salah Uddin
Keyword(s):  
Market Efficiency ◽  
Subject Matter ◽  
Stock Exchange ◽  
Weak Form ◽  
Nonparametric Test ◽  
Policy Reforms ◽  
Parametric Test ◽  
Normality Test ◽  
Run Test ◽  
The Impact

The paper tries to find evidence supporting the impact of continuous policy reforms on the market efficiency on the Dhaka Stock Exchange (DSE). Different policies formed/reformed from 1994 to 2005 were categorized in eleven groups depending on their time of issue and subject matter. To get the result, both nonparametric test (Kolmogrov-Smirnov normality test and run test) and parametric test (autocorrelation test, autoregression) have been performed. Analyses were done for each policy group, and it is found that formed/reformed policies for DSE during the study period failed to improve the market efficiency even in the weak form level.

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