scholarly journals EFFECT OF MACROECONOMIC FACTORS ON TRADING VOLUMES OF MANUFACTURING AND ALLIED COMPANIES LISTED IN NAIROBI SECURITIES EXCHANGE

2020 ◽  
Vol 5 (2) ◽  
pp. 27
Author(s):  
Gabriel Njogu Chege ◽  
Stanley Kirika
Keyword(s):  
Negative Correlation ◽  
Trading Volume ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Unique Contribution ◽  
Stock Trading ◽  
Treasury Bill ◽  
Lending Rate ◽  
Trading Volumes

Purpose: The purpose of this study was to establish the effect of inflation, lending rate, exchange rates and Treasury bill interest rate on trading volumes of manufacturing and allied companies listed in the Nairobi Stock Exchange. Materials and Methods: The research adopted a quantitative descriptive design that focuses on nine manufacturing and allied companies listed in NSE and make up in the list of 25-share index companies. The nine manufacturing and allied companies were selected through purposive sampling techniques, where samples were selected based specific factors. The data used in the research was collected from Central Bank of Kenya, Nairobi Security Exchange and Kenya Bureau of Statistics. This research employed a panel data analysis using STATA software.  Treasury bill rate was dropped from the model due to multicollinearity. Results: The analysis found that there was a negative relationship between inflation on trading volume, exchange rate had a negative correlation with stock trading, lending rate had a negative correlation with stock trading volume of manufacturing and allied companies listed in the Nairobi Stock Exchange.  Unique contribution to theory, practice and policy: The study recommends the government should initiate policies that will lower the lending rate in Kenya as lower lending rate may translate to higher stock trading volumes. Further studies should research on other factors affecting stock trade volume which may include the value of the stocks and the information size in the market.

scholarly journals EFFECT OF MACROECONOMIC FACTORS ON TRADING VOLUMES OF MANUFACTURING AND ALLIED COMPANIES LISTED IN NAIROBI SECURITIES EXCHANGE

2021 ◽  
Vol 6 (1) ◽  
pp. 32-52
Author(s):  
Gabriel Chege ◽  
Stanley Kirika
Keyword(s):  
Negative Correlation ◽  
Trading Volume ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Unique Contribution ◽  
Stock Trading ◽  
Macroeconomic Factors ◽  
Lending Rate ◽  
Trading Volumes ◽  
The Government

Purpose: The purpose of the study was to establish the effect of macroeconomic factors on stocks trading volumes of manufacturing and allied companies listed in Nairobi Securities Exchange.    Materials and Methods: The research adopted a quantitative descriptive design that focuses on nine manufacturing and allied companies listed in NSE and make up in the list of 25-share index companies. The nine manufacturing and allied companies were selected through purposive sampling techniques, where samples were selected based specific factors. The data used in the research was collected from Central Bank of Kenya, Nairobi Security Exchange and Kenya Bureau of Statistics. This research employed a panel data analysis using STATA software. Treasury bill rate was dropped from the model due to multicollinearity. Results: The analysis found that there was a negative relationship between inflation on trading volume, exchange rate had a negative correlation with stock trading, lending rate had a negative correlation with stock trading volume of manufacturing and allied companies listed in the Nairobi Stock Exchange.  Unique contribution to theory, practice and policy: The study recommends the government should initiate policies that will lower the lending rate in Kenya as lower lending rate may translate to higher stock trading volumes. Further studies should research on other factors affecting stock trade volume which may include the value of the stocks and the information size in the market.

scholarly journals REAKSI PASAR SAHAM PERUSAHAAN FARMASI SEBELUM DAN SESUDAH COVID-19 DI INDONESIA

2021 ◽  
Vol 6 (1) ◽  
pp. 67-79
Author(s):  
Kartika Pradana Suryatimur ◽  
Nibras Anna Khabibah
Keyword(s):  
Stock Prices ◽  
Trading Volume ◽  
Stock Exchange ◽  
Test Results ◽  
Pharmaceutical Sector ◽  
Economic Activities ◽  
Stock Trading ◽  
The World ◽  
Before And After ◽  
Trading Volumes

The COVID-19 pandemic has had an impact on social and economic activities that have an impact on stock market conditions in the world, including Indonesia. This study identified differences in stock prices and stock trading volumes (TVA) of companies in the pharmaceutical sector before and after the announcement of the first COVID-19 case in Indonesia. The sample used is 10 pharmaceutical sector companies listed on the Indonesia Stock Exchange (IDX). The method used in this research is an event study using paired sample t-test. Based on the test results, there was a difference in prices before and after the announcement of the first COVID-19 case in Indonesia, but there was no difference in trading volume testing.

scholarly journals The Influence of Trading Volume, Market Trend, and Monetary Policy on Characteristics of the Chinese Stock Exchange: An Econophysics Perspective

Open Physics ◽  
2019 ◽  
Vol 17 (1) ◽  
pp. 985-998
Author(s):  
Meng Ran ◽  
Zhenpeng Tang ◽  
Weihong Chen
Keyword(s):  
Monetary Policy ◽  
Trading Volume ◽  
Stock Exchange ◽  
Composite Index ◽  
Policy Formulation ◽  
Time Intervals ◽  
Monetary Policies ◽  
Policy Cycles ◽  
Trading Volumes ◽  
Healthy Growth

Abstract The paper adopts the financial physics approach to investigate influence of trading volume, market trend, as well as monetary policy on characteristics of the Chinese Stock Exchange. Utilizing 1-minute high-frequency data at various time intervals, the study examines the probability distribution density, autocorrelation and multi-fractal of the Shanghai Composite Index. Our study finds that the scale of trading volume, stock market trends, and monetary policy cycles all exert significant influences on micro characteristics of Shanghai Composite Index. More specifically, under the conditions of large trading volumes, loose monetary policies, and downward stock trends, the market possesses better fitting on Levy’s distribution, the volatility self-correlation is stronger, and multifractal trait is more salient. We hope our study could provide better guidance for investment decisions, and form the basis for policy formulation aiming for a healthy growth of the financial market.

Disposition effect at the market level: evidence from Indian stock market

2019 ◽  
Vol 12 (2) ◽  
pp. 69-82
Author(s):  
Sravani Bharandev ◽  
Sapar Narayan Rao
Keyword(s):  
Trading Volume ◽  
Stock Exchange ◽  
Reference Points ◽  
Disposition Effect ◽  
Content Type ◽  
Ex Post ◽  
Abnormal Trading Volume ◽  
The Difference ◽  
Trading Volumes ◽  
Indian Stock Market

Purpose The purpose of this paper is to test the disposition effect at market level and propose an appropriate reference point for testing disposition at market level. Design/methodology/approach This is an empirical study conducted on 500 index stocks of NSE500 (National Stock Exchange). Winning and losing days for each stock are calculated using 52-week high and low prices as reference points. To test disposition effect, abnormal trading volumes of stocks are regressed on their percentage of winning (losing) days. Further using ANOVA, the difference between mean of percentage of winning (losing) days of high abnormal trading volume deciles and low abnormal trading volume deciles is tested. Findings Results show that a stock’s abnormal trading volume is positively influenced by the percentage of winning days whereas percentage of losing days show no such effect. Findings are consistent even after controlling for volatility and liquidity. ANOVA results show the presence of high percentage of winning days in higher deciles of abnormal trading volumes and no such pattern in case of losing days confirms the presence of disposition effect. Further an ex post analysis indicates that disposition prone investors accumulate losses. Originality/value This is the first study, which proposes the use of 52-week high and low prices as reference points to test the market-level disposition effect. Findings of this study enhance the limited literature available on disposition effect in emerging markets by providing evidence from Indian stock markets.

Investigating the Relationship Between Ownership Structure and Investment Efficiency in Emerging Markets: Evidence From the Egyptian Stock Market

2018 ◽  
Vol 8 (4) ◽  
pp. 1
Author(s):  
Ahmed Sayed Rashed ◽  
Ebitihj Mostafa Abd ◽  
Esraa Fathi Mohamed Ismail ◽  
Doaa Mohamed Abd El Samea
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Investment Efficiency ◽  
Outside Director ◽  
Director Ownership ◽  
The Relationship

This paper aims to examine the relationship between Ownership Structure Mechanisms (Managerial Ownership, Institutional Ownership, Block holder Ownership and Outside Director Ownership) and Investment Efficiency by using panel data analysis. To investigate this relationship used the multiple regression models. Findings of investigation of 35 firms listed on the Egyptian Stock Exchange in the period 2006 to 2015 by balanced Panel model representative. Results indicated that Managerial Ownership isn’t related with investment efficiency. In contract, institutional ownership, block holder ownership and outside director ownership have a negative relationship with investment efficiency. In addition, the researcher found that control variables (Firm size, Debt ratio, Tobin’s Q) not related to investment efficiency. These findings imply that the Majority of Egyptians firms relies on institutional without individual ownership and then reduces much of possible from agency problems and decreasing information asymmetry and facilitating the monitoring of investment decisions.

scholarly journals THE XBRL TECHNOLOGY AND MARKET EFFICIENCY IN BANKING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX)

2020 ◽  
Vol 4 (1) ◽  
pp. 26
Author(s):  
Erni Jayani ◽  
Jumiadi Abdi Winata ◽  
Khairunnisa Harahap
Keyword(s):  
Information Asymmetry ◽  
Market Efficiency ◽  
Financial Reporting ◽  
Stock Prices ◽  
Trading Volume ◽  
Sampling Method ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Accurate Information ◽  
Stock Trading

The problem in this research is the need for fast and accurate information in the format of the presentation of financial statements resulting in the distribution of information, and data management can be problematic. Therefore, a format for financial reporting systems, namely Extensible Business Reporting Language (XBRL), was formed. The purpose of this study was to determine the effect of XBRL technology, stock prices, Return on Assets (ROA), and institutional ownership on market efficiency (information asymmetry and stock trading volume). The population and sample of this study are banking companies listed on the Indonesia Stock Exchange from 2015-2016. The sampling method using a purposive sampling method and obtained a sample of 42 companies. Data collection techniques are carried out by taking data from the Indonesia Stock Exchange website (www.idx.co.id) and the site http://finance.yahoo.com. Data were analyzed with multiple regression tests after being declared normal with the normality test and though using SPSS 20. The results of this study simultaneously stated that XBRL technology, stock prices, ROA, and institutional ownership together have an influence on information asymmetry and stock trading volume. From the results of the study, it can be concluded that XBRL technology, stock prices, ROA, and institutional ownership cause a decrease in the level of information asymmetry and trading volume. This result also states that the company is in excellent condition when the value of information asymmetry decreases, but it is not good when the trading volume of its shares also decreases. Keywords: XBRL Technology; Stock Prices; Market Efficiency; Information Asymmetry; Stock Trading Volume. 

scholarly journals Trading Volume as a Predictor of Market Movement

2019 ◽  
Vol 8 (2) ◽  
pp. 57-69
Author(s):  
Edson Kambeu
Keyword(s):  
Logistic Regression ◽  
Stock Market ◽  
Regression Model ◽  
Trading Volume ◽  
Logistic Regression Model ◽  
Predictive Analytics ◽  
Stock Exchange ◽  
Stock Market Index ◽  
Trading Volumes ◽  
Popular Language

A logistic regression model is has also become a popular model because of its ability to predict, classify and draw relationships between a dichotomous dependent variable and dependent variables. On the other hand, the R programming language has become a popular language for building and implementing predictive analytics models. In this paper, we apply a logistic regression model in the R environment in order to examine whether daily trading volume at the Botswana Stock Exchange influence daily stock market movement. Specifically, we use a logistic regression model to find the relationship between daily stock movement and the trading volumes experienced in the recent five previous trading days. Our results show that only the trading volume for the third previous day influence current stock market index movement. Overall, trading volumes of the past five days were found not have an impact on today’s stock market movement. The results can be used as a basis for building a predictive model that utilizes trading as a predictor of stock market movement.

scholarly journals MARKET REACTION ON THE ANNOUNCEMENT OF SRI KEHATI INDEX IN INDONESIAN STOCK EXCHANGE

2019 ◽  
Author(s):  
Anggita Langgeng Wijaya ◽  
Mia Noviyanti ◽  
Probo Mahayu
Keyword(s):  
Trading Volume ◽  
Market Reaction ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Rank Test ◽  
Stock Trading ◽  
Population Sampling ◽  
Signed Rank ◽  
Before And After ◽  
Signed Rank Test

The purpose of this study was to test the market reaction to the announcement of the Sri Kehati Index on the Indonesia Stock Exchange. The population in this study is all companies included in the Sri Kehati Index from 2013 to 2016. The selection of samples was taken by the population sampling method. Hypothesis testing is done by paired t test and Wilcoxon Signed Rank Test. The findings of this research are: 1) there is no difference in abnormal returns before and after the announcement of the Sri Kehati Index on the Indonesia Stock Exchange. 2) There is a difference in the activity of stock trading volume before and after the announcement of the Sri Kehati index in the 5th and 6th periods, but there is no difference in the activity of stock trading volume in other periods. The Indonesia Stock Exchange did not react consistently to the announcement of the Sri Kehati Index.

scholarly journals Does Capital Structure Affects Firms’ Performance in Ghana? Panel Data Analysis

2019 ◽  
Vol 8 (4) ◽  
pp. 131
Author(s):  
John MacCarthy ◽  
Helena Ahulu
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Equity Capital ◽  
Debt Capital ◽  
Tangible Assets ◽  
Ghana Stock Exchange

This paper examines the effect of capital structure on the firms’ performance. The study collected data from seventeen firms listed on the Ghana Stock Exchange from 2009 to 2018. A quantitative research technique is used to collect data to test two hypotheses. Panel data regression is employed to determine the effect of capital structure on firms’ performance. The study revealed that short-term debt and total debt accounted for 67% and 76.3% respectively of capital used to finance the operations for the period. Furthermore, the study revealed that there is significant and negative relationship between capital structures and firms’ performance. The study concludes that firms should minimise the use of debt capital and rather concentrate on equity capital to finance their operations. The study recommends that firms should increase sales and invest in tangible assets to maximise the firms’ performance. 

scholarly journals Comparison of Sharia Stock Prices and Trading Volumes Before and During COVID-19

2021 ◽  
Vol 1 (1) ◽  
pp. 13-24
Author(s):  
Yana Ameliana Yunus
Keyword(s):  
Stock Prices ◽  
Trading Volume ◽  
Financial Risk ◽  
Optimal Portfolio ◽  
Stock Trading ◽  
Significant Difference ◽  
Before And After ◽  
Insignificant Difference ◽  
Trading Volumes ◽  
Rights Issue

Before making an investment, entrepreneurs or investors must consider the benefits and financial risks obtained. So, investors need to take action in investing, meaning that investors need to form a portfolio by selecting several assets so that financial risk can be minimized without reducing the expected. The COVID-19 pandemic has significantly impacted the economy, especially investors, informing an optimal portfolio. This study aims to determine the optimal portfolio formation during the COVID-19 pandemic. In this study measurement, we used variables in the form of stock prices and stock trading volumes before and during COVID-19 pandemic. This study shows a comparison, but not so significant, between stock prices before and during the pandemic. Based on the survey conducted, the following results were found, i.e., first, shows an insignificant difference between prices before and after the rights issue announcement. The stock trading volume indicates a significant difference between the stock trading volume before and after the rights issue; trading volume increases after the information of the rights issue. By implementing companies affected by COVID-19 pandemic, we can watch the prices that occur around the announcement date. Investors can make a reason about their investments in shares of issuers affected by COVID-19 pandemic.

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