Aggregate Earnings, Stock Market Returns and Macroeconomic Activity: A Discussion of 'Does Earnings Guidance Affect Market Returns? The Nature and Information Content of Aggregate Earnings Guidance'

2006 ◽  
Author(s):  
Lakshmanan Shivakumar
Keyword(s):  
Stock Market ◽  
Information Content ◽  
Earnings Guidance ◽  
Market Returns ◽  
Stock Market Returns ◽  
Macroeconomic Activity ◽  
Aggregate Earnings

scholarly journals La Réaction Des Cours Boursiers Suite À Une Nouvelle Annonce Des Entreprises: Cas De La Bourse Régionale Des Valeurs Mobilières (BRVM)

2017 ◽  
Vol 13 (22) ◽  
pp. 282
Author(s):  
Dadem Kemgou, Edouard Guilaire ◽  
Manetsa, Eloge Lord ◽  
Djoutsa Wamba, Léopold ◽  
Kamdem, David
Keyword(s):  
Stock Market ◽  
Information Content ◽  
Stock Exchange ◽  
Event Studies ◽  
Series Data ◽  
Market Returns ◽  
Stock Market Returns ◽  
Share Prices

The purpose of this article is to highlight the reaction of share prices following the publication of dividends on the regional stock exchange (RSESS). To achieve the objective of our study, daily profitability series data were used over the period from January 1998 to December 2007. The methodology of the event studies was used and there are various ways to incorporate the "Event in the prices. It is accepted that the effect of the announcement of the dividend for all the securities is positive despite imperfections in the reaction of the markets. Consequently, the publication of dividends has an impact on stock market returns. The hypothetical information content of the dividend (ICHD) is therefore accepted.

scholarly journals EVA-based financial performance measurement: An evidential study of selected emerging country companies

2020 ◽  
Vol 18 (1) ◽  
pp. 179-195
Author(s):  
Kushagra Goel ◽  
Sunny Oswal
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Information Content ◽  
Value Added ◽  
Market Value ◽  
Market Returns ◽  
Stock Market Returns ◽  
Financial Variables ◽  
Incremental Information ◽  
Market Value Added

This paper aims at examining the claims that economic value added (EVA) is a superior performance indicator than the traditional performance indicators like ROCE, NOPAT, EPS, OCF, and RONW. This study investigates the relative explanatory power of EVA measure of non-financial Indian companies with respect to two measures, market value added and stock returns used as a proxy for shareholder value. The analysis is performed for a sample of 46 Indian companies for the period of 2009-2019. The panel data regression models are employed to test the relative and incremental information content of EVA and other audited accounting-based measures. Relative information content tests reveal that NOPAT and OCF appear to be more value-relevant than EVA in explaining the market value of Indian companies. It was also found that ROA is more closely associated with stock market returns than EVA. Additionally, incremental information content tests suggest that EVA underperforms in comparison with NOPAT and OCF in analysing market value added. It was also found that EVA does not add any incremental information content to that provided by ROA and ROE accounting measures in explaining stock returns. Overall, the findings do not support the purported superiority of EVA to established accounting variables in association with market value or stock market returns of the firm. It is concluded that non-financial variables such as research and development, customer satisfaction, internal business process efficiency, innovation, employee satisfaction, CSR, product quality apart from financial variables drive market value and should be considered by investors in developing their investment strategies

Relationship between Foreign Portfolio Investments (FPI), Domestic Institutional Investors, and Stock Market Returns in India

GIS Business ◽  
2017 ◽  
Vol 12 (6) ◽  
pp. 1-9
Author(s):  
Dhananjaya Kadanda ◽  
Krishna Raj
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Negative Relationship ◽  
Trading Strategies ◽  
Market Returns ◽  
Stock Market Returns ◽  
Foreign Portfolio Investment ◽  
Stock Market Return ◽  
Indian Stock Market ◽  
Feedback Trading

The present article attempts to understand the relationship between foreign portfolio investment (FPI), domestic institutional investors (DIIs), and stock market returns in India using high frequency data. The study analyses the trading strategies of FPIs, DIIs and its impact on the stock market return. We found that the trading strategies of FIIs and DIIs differ in Indian stock market. While FIIs follow positive feedback trading strategy, DIIs pursue the strategy of negative feedback trading which was more pronounced during the crisis. Further, there is negative relationship between FPI flows and DII flows. The results indicate the importance of developing strong domestic institutional investors to counteract the destabilising nature FIIs, particularly during turbulent times.

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