Does Capital Market Distrust CSR Reporting?: Economic Benefits in Presence of Complementary Monitoring Mechanism

2019 ◽  
Author(s):  
Isabel Garcia-Sanchez ◽  
Jennifer Ferrero ◽  
Tania Azevedo
Keyword(s):  
Capital Market ◽  
Economic Benefits ◽  
Csr Reporting ◽  
Monitoring Mechanism

DAMPAK PENGUMUMAN PENERAPAN TEKNOLOGI INFORMASI TERHADAP NILAI PERUSAHAAN

2008 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Mohamad Herdratmoko ◽  
DIDI ACHJARI
Keyword(s):  
Data Analysis ◽  
Event Study ◽  
Capital Market ◽  
Market Reaction ◽  
Stock Exchange ◽  
Economic Benefits ◽  
It Investment ◽  
Productivity Paradox ◽  
It Implementation ◽  
The Relationship

Nowadays, orgonizations tend to invest highty in infprmation technologt However the notion of podrctivity puadox indicates that the investments may not attain intended results. past studies show that the relationship between IT investment and productivity/company perform{mce shows mixed results. This stt$t aims to investigate-market reaction towwds IT implementatibn (mnotn cement in the context of Indonesia.The implementation is expected to provide a signal to tie market since it may have information content of pontential future economic benefits. The current research employs datafrom Inionesia stock Exchange fformerly btown as Bursa Efek Jakarta - BEq. The ziest was used to analyze the data. unfortunately, data analysis results indicate that the average abnormal rehnn before (t-1) and afier (t+t) the doy ofonnouncem9yt has no significant dffirence. The results suggest lhat iT implementition announcement have no- information-iontent for Indonesia's capital market/investor Lesson learnedfrom the current ,iray, is that, in the cgwext of Indonesia, IT implementation is not perceived tolead to produc"tivity improvement.Keywords : e-business, IT implementation, event study, productivity paradox, Jakarta Stock Exchange (Bursa Efek Jakarh), market reaction, IT investment.

scholarly journals Using Genetic Algorithms to Develop a Dynamic Guaranteed Option Hedge System

2019 ◽  
Vol 11 (15) ◽  
pp. 4100 ◽  
Author(s):  
Hyounggun Song ◽  
Sung Kwon Han ◽  
Seung Hwan Jeong ◽  
Hee Soo Lee ◽  
Kyong Joo Oh
Keyword(s):  
Genetic Algorithm ◽  
Financial Markets ◽  
Capital Market ◽  
Linear Problem ◽  
Economic Benefits ◽  
Insurance Companies ◽  
Investment Efficiency ◽  
Investment Strategies ◽  
Market Risks ◽  
Total Profit

In this research, we develop a guaranteed option hedge system to protect against capital market risks using a genetic algorithm (GA). We test the hedge effectiveness of our guaranteed option hedge strategy by comparing the performance of our system with those of other strategies. A genetic algorithm heuristic trading method for the optimization of a non-linear problem is applied to each system to improve the hedge effectiveness. The GA dynamic hedge system developed in this research is found to improve hedge effectiveness by reducing the option value volatility and increasing the total profit. Insurance companies are able to make more efficient investment strategies by using our guaranteed option hedge system. It contributes to the investment efficiency of the insurance companies and helps to achieve efficiency for financial markets. In addition, it helps to achieve sustained economic benefits to policyholders. In this sense, the system developed in this paper plays a role in sustaining economic growth.

scholarly journals The Value of Academic Directors to Stakeholders: Evidence on Corporate Social Responsibility Reporting

2020 ◽  
Author(s):  
Hsin-Yi Huang ◽  
Cheng-Hsun Lee ◽  
Chih-Hsien Liao
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Capital Market ◽  
Third Party ◽  
Additional Analysis ◽  
Csr Reporting ◽  
Positive Effects ◽  
Stakeholder Interests ◽  
Corporate Social Responsibility Reporting ◽  
Corporate Social

This study explores the regulatory setting in Taiwan and examines the association between academic directors and corporate social responsibility (CSR) reporting. We find that firms with academic directors on their boards are more likely to issue standalone CSR reports and to obtain third-party assurance on such reports. We also demonstrate that an academic director’s university prestige as well as industry expertise both have incremental positive effects on CSR reporting. Additional analysis further suggests that a firm’s CSR reporting is better valued by the capital market when the firm has academic directors, consistent with academic directors strengthening investors’ perceptions regarding the credibility of voluntarily-disclosed CSR information. Our finding that the presence of academic directors can promote better CSR reporting indicates that academic directors contribute not only to shareholder value, but also to wider stakeholder interests.

scholarly journals THE ALBANIAN ECONOMY IN THE STOCK MARKET PERSPECTIVE

2019 ◽  
Vol 31 (1) ◽  
pp. 149-155
Author(s):  
Bajram Lamaj ◽  
Stefan Simeonov
Keyword(s):  
Interest Rates ◽  
Capital Market ◽  
Banking Sector ◽  
Stock Exchange ◽  
Banking System ◽  
Financial System ◽  
Economic Benefits ◽  
Stock Index ◽  
Individual Investors ◽  
The Capital Market

Since the origin of the capitalist economic system, Albania suffers from a shrinking financial system. The financial system lacks what is perhaps the most important and dynamic part in developed economies: a capital market. It is an important element for the country's economic and financial development, as it is a very competitive alternative to the banking sector, reducing intermediation costs for businesses and all economic operators by enabling cheaper alternatives to fund the activity. Today, the banking system has almost exhausted opportunities to be a business financing promoter. And this is the stage where the Albanian economy has come to. Businesses cannot meet all the financing needs of the banking system, while on the other hand, there are individuals who, at the moment, have little choice of investment of their savings. Interest rates, both for bank deposits and government securities, have already reached an extremely low level and are not at all attractive for individual investors, which makes them look for far more attractive investment alternatives. In this way the scholarship will bring an alternative that individuals can invest savings in shares or other securities of companies that will be interested in trading in Albania thus developing the capital market and taking advantage of all the economic benefits that it brings. In this paper, we will firstly address the concept of the capital market and the elements that shape it as well as its development in Albania. The main purpose of this paper is to identify the problems faced by Tirana's former scholarship, to study the situation and the current opportunities of the Albanian economy to develop this structure of the capital market, namely the stock exchange, and to create a stock index model with which Albania can develop this structure and why not be represented in the regional and international markets.

scholarly journals Value relevance of deferred tax assets in the Brazilian banking industry

2020 ◽  
Vol 31 (82) ◽  
pp. 33-49
Author(s):  
Leandro Dias Guia ◽  
José Alves Dantas
Keyword(s):  
Capital Market ◽  
Banking Industry ◽  
Value Relevance ◽  
Negative Relationship ◽  
Market Value ◽  
Economic Benefits ◽  
Equity Structure ◽  
Deferred Tax Assets ◽  
Deferred Tax

ABSTRACT This study aimed to investigate the informational relevance to the capital market of the significant level of deferred tax assets (DTAs) in the Brazilian banking industry, identifying whether such assets influence the market value of publicly-held banks. The value relevance of DTAs in the banking industry is an incipient topic in the national literature, with conflicting results in the international research. Brazil presents characteristics, most notably regarding the dimension of the asymmetries between accounting and taxable profit, which justify concern about the effects of DTAs on the market value of banks. The literature highlights issues involving DTAs related to their ability to generate economic benefits and control of the entity, especially in the banking industry, due to not fulfilling the role of financial intermediation, which would make them devoid of economic substance. This would signal potential bank risks and weaknesses, such as a reduction in the quality of equity and profits, in addition to distortions in the economic-financial indicators, which would justify a negative perception on the part of investors. As the study’s main contribution to the literature, we can highlight the identification that in the Brazilian market, the asymmetries between banks’ taxable and corporate earnings, the origin of deferred tax assets, weigh negatively on the market value of these institutions. We empirically tested the hypothesis in the Brazilian capital market, using data from 2000 to 2017 on publicly-held banks, by estimating two models - Market-to-Book and Ohlson (1995). The results of this study show that in the Brazilian capital market there is a negative relationship between the volume of the banks’ DTAs and the market value of these entities, corroborating the hypothesis that investors identify the relevance of these assets in the equity structure as a sign of the quality of the equity and the profit of these entities being undermined.

scholarly journals Impact of Safta on Capital Market Integration of South Asia: Evidence from Cointegration Analysis

2018 ◽  
Vol 11 (1) ◽  
pp. 79-96
Author(s):  
R. M. Ammar Zahid ◽  
Muzammil Khurshid
Keyword(s):  
South Asian ◽  
Capital Markets ◽  
Capital Market ◽  
Market Integration ◽  
Correlation Coefficients ◽  
Trade Agreement ◽  
Economic Benefits ◽  
Cointegration Analysis ◽  
Capital Market Integration ◽  
Regional Capital

AbstractRegional Trade agreements (RTAs) are increasing worldwide because of associated economic benefits such as increased cross border investment and trade, development and integration markets. This paper investigates how South Asian Free Trade Agreement (SAFTA) impact on the integration of South Asian capital markets. Weekly data of capital market indices of three countries (India, Pakistan and Sri Lanka) have been analyzed for overall (1998-2017) and two sub periods, 1998-2006 (Pre SAFTA) and 2009-2017 (Post SAFTA). Correlation coefficients, Unit root tests and Johansen and Juselius (JJ) Cointegration technique has been applied to access the integration between the markets. The main findings suggest that integration between the South Asian capital markets has been increased in Post-SAFTA period. The evidence that SAFTA pact results in increased integration of regional capital markets has important implications for investors and policymakers.

Community Institutions and Initial Diffusion of Corporate Social Responsibility Practices in China's Banking Industry

2015 ◽  
Vol 11 (3) ◽  
pp. 441-468 ◽  
Author(s):  
Junxiu Sun ◽  
Feng Wang ◽  
Fanghua Wang ◽  
Haitao Yin
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Management Practices ◽  
Banking Industry ◽  
Economic Benefits ◽  
Csr Reporting ◽  
Community Institutions ◽  
Early Adoption ◽  
Corporate Social ◽  
Insight Into

ABSTRACTThe existing literature does not provide adequate insight into the initial diffusion of new management practices, especially those that yield no immediate economic benefits, and have not yet gained legitimacy. We study how firms’ local institutional environments influence early adoption behavior, examining the spread of corporate social responsibility (CSR) reports in China's banking industry from 2006 to 2011. We find that banks are more likely to be first movers of CSR reporting if they operate in communities where more companies publish CSR reports or where there are guidelines encouraging CSR reporting, and the impacts of these two institutional factors are further moderated by the length of time that banks have operated in communities. Our study highlights the usefulness of institutional theory in understanding the initial adoption of new management practices, when the organizational field is defined as a geographic community instead of an industry sector and its supply chain.

scholarly journals Does Capital Market Distrust CSR Reporting? Economic Benefits in Presence of Complementary Monitoring Mechanism

2020 ◽  
Vol 2 (3) ◽  
pp. 1
Author(s):  
Isabel-María García-Sánchez ◽  
Jennifer Martínez-Ferrero ◽  
Tania Azevedo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Economic Benefits ◽  
Point Of View ◽  
Management Decision ◽  
Theoretical Point ◽  
Csr Reporting ◽  
Information Giving ◽  
Csr Disclosure ◽  
Corporate Social

From a theoretical point of view, corporate social responsibility (CSR) disclosure actions have associated a large list of benefits as a result of the lower information asymmetry problems that provoke firms to enjoy better financial conditions and higher market value. However, empirically there is no unanimity in the academy about these positive impacts. In this paper, we consider that the possible discretionary decision that managers could have in the elaboration of CSR reporting implies distrust about the credibility and utility of sustainability information. In this regard, the presence of independence in boards and directors that ensure better control of management decision could moderate the relationship between the quality of CSR reports and their benefits. Independent directors, in their decision-making process, associate their personal image, reputation, and career with CSR disclosures. For an international sample of analysis, our empirical evidence supports the premise that the market only positively assesses the utility and comparability of corporate social responsibility information, giving firms a superior value when there is a complementary mechanism that guarantees information credibility.

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