The Impact of Creditor Protection on Stock Prices in the Presence of Credit Crunches

This study dealt with the effect of foreign direct investment on the market value of the company during the period of time (2010-2017). This issue was studied through a sample of oil fields in southern Iraq in which the company operates within the first and second licensing contracts rounds and according to the circumstances and variables of the investment environment as it is. Although this investment often achieves high returns, it is also characterized by a high degree of risk and for the purpose of evaluating the impact of foreign direct investment on the market value of the company's stock prices for the period (2010-2017). The statistical scale (T-TEST) was used to indicate the significance of the correlation hypotheses. Between the return on investment as the independent variable and the market value as the dependent variable, and the use of the coefficient of determination (R2) that measures the effect of the independent variable (foreign direct investment) on the dependent variable (market value) and the F-Test to demonstrate acceptance or rejection of the hypothesis of the return on investing in the market value of the oil company, and if the company achieves a high return in foreign direct investment, the market value of it will be affected positively. The study was based on a set of goals, including determining the attractiveness of Iraq to foreign investments, especially the oil sector, and the study reached a number of conclusions, the most prominent of which is the existence of a strong inverse correlation between the return on investment and the market value of the company. And the existence of a slight impact of the return on investment on the market value of the company, and the study reached a number of recommendations, the most important of which is activating the investment climate through political stability and the clarity and stability of laws and legislation regulating investment, which is one of the most important factors affecting the investment decision.

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The Impact of the Disposition Effect on Liquidity and Stock Prices

SSRN Electronic Journal ◽

10.2139/ssrn.1885298 ◽

2011 ◽

Author(s):

Darwin Choi

Keyword(s):

Stock Prices ◽

Disposition Effect ◽

The Impact

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The Impact of Monetary Policy Announcements on the Volatility of Australian Banking Stock Prices

SSRN Electronic Journal ◽

10.2139/ssrn.3589011 ◽

2018 ◽

Author(s):

Nathan J. Atwood ◽

Sigitas Karpavicius

Keyword(s):

Monetary Policy ◽

Stock Prices ◽

The Impact

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Building stock market resilience through digital transformation: using Google trends to analyze the impact of COVID-19 pandemic

Frontiers of Business Research in China ◽

10.1186/s11782-020-00089-z ◽

2020 ◽

Vol 14 (1) ◽

Cited By ~ 2

Author(s):

Ding Ding ◽

Chong Guan ◽

Calvin M. L. Chan ◽

Wenting Liu

Keyword(s):

Stock Market ◽

Stock Prices ◽

Stock Price ◽

Digital Transformation ◽

Google Trends ◽

Building Stock ◽

Market Sentiment ◽

Price Performance ◽

Novel Coronavirus ◽

The Impact

Abstract As the 2019 novel coronavirus disease (COVID-19) pandemic rages globally, its impact has been felt in the stock markets around the world. Amidst the gloomy economic outlook, certain sectors seem to have survived better than others. This paper aims to investigate the sectors that have performed better even as market sentiment is affected by the pandemic. The daily closing stock prices of a total usable sample of 1,567 firms from 37 sectors are first analyzed using a combination of hierarchical clustering and shape-based distance (SBD) measures. Market sentiment is modeled from Google Trends on the COVID-19 pandemic. This is then analyzed against the time series of daily closing stock prices using augmented vector autoregression (VAR). The empirical results indicate that market sentiment towards the pandemic has significant effects on the stock prices of the sectors. Particularly, the stock price performance across sectors is differentiated by the level of the digital transformation of sectors, with those that are most digitally transformed, showing resilience towards negative market sentiment on the pandemic. This study contributes to the existing literature by incorporating search trends to analyze market sentiment, and by showing that digital transformation moderated the stock market resilience of firms against concern over the COVID-19 outbreak.

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Optimal feedback control of stock prices under credit risk dynamics

Annals of Operations Research ◽

10.1007/s10479-021-04002-6 ◽

2021 ◽

Author(s):

Jinghai Shao ◽

Sovan Mitra ◽

Andreas Karathanasopoulos

Keyword(s):

Credit Risk ◽

Stock Prices ◽

Stock Price ◽

Global Financial Crisis ◽

Optimal Feedback Control ◽

Dynamic Programming Principle ◽

Price Model ◽

Managerial Control ◽

Optimal Feedback ◽

The Impact

AbstractIn this paper we provide a stock price model that explicitly incorporates credit risk, under a stochastic optimal control system. The stock price model also incorporates the managerial control of credit risk through a control policy in the stochastic system. We provide explicit conditions on the existence of optimal feedback controls for the stock price model with credit risk. We prove the continuity of the value function, and then prove the dynamic programming principle for our system. Finally, we prove the Viscosity Solution of the Hamilton–Jacobi–Bellman equation. This paper is particularly relevant to industry, as the impact of credit risk upon stock prices has been prominent since the commencement of the Global Financial Crisis.

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The Impact of COVID-19 on the Stock Price of Socially Responsible Enterprises: An Empirical Study in Taiwan Stock Market

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18041398 ◽

2021 ◽

Vol 18 (4) ◽

pp. 1398

Author(s):

Kuo-Jung Lee ◽

Su-Lien Lu

Keyword(s):

Stock Market ◽

Stock Prices ◽

Stock Price ◽

Abnormal Returns ◽

Recovery Phase ◽

Socially Responsible ◽

Cumulative Impact ◽

Study Approach ◽

Price Performance ◽

The Impact

This study examines the impact of the COVID-19 outbreak on the Taiwan stock market and investigates whether companies with a commitment to corporate social responsibility (CSR) were less affected. This study uses a selection of companies provided by CommonWealth magazine to classify the listed companies in Taiwan as CSR and non-CSR companies. The event study approach is applied to examine the change in the stock prices of CSR companies after the first COVID-19 outbreak in Taiwan. The empirical results indicate that the stock prices of all companies generated significantly negative abnormal returns and negative cumulative abnormal returns after the outbreak. Compared with all companies and with non-CSR companies, CSR companies were less affected by the outbreak; their stock prices were relatively resistant to the fall and they recovered faster. In addition, the cumulative impact of the COVID-19 on the stock prices of CSR companies is smaller than that of non-CSR companies on both short- and long-term bases. However, the stock price performance of non-CSR companies was not weaker than that of CSR companies during times when the impact of the pandemic was lower or during the price recovery phase.

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