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1 – 10 of over 1000Yu Hu, Xiaoquan Jiang and Wenjun Xue
This paper investigates the relationship between institutional ownership and idiosyncratic volatility in Chinese and the USA stock markets and explores the potential explanations.
Abstract
Purpose
This paper investigates the relationship between institutional ownership and idiosyncratic volatility in Chinese and the USA stock markets and explores the potential explanations.
Design/methodology/approach
In this paper, the authors use the panel data regressions and the dynamic tests of two-way Granger causality in the panel VAR model to examine the relationship between institutional ownership and idiosyncratic volatility in Chinese and the USA stock markets.
Findings
The authors find that the institutional ownership in the Chinese (the USA) stock market is significantly and positively (negatively) related to idiosyncratic volatility through various tests. This paper indicates that institutional investors in the USA are more prudent and risk-averse, while the Chinese institutional investors are not because of high risk-bearing capacity.
Originality/value
This paper deepens the authors’ understanding on the relationship between institutional ownership and idiosyncratic volatility and in the USA and the Chinese stock markets. This paper explains the opposite relationships between institutional ownership and idiosyncratic volatility in the stock markets in China and USA.
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Satinder Kaur, Sidharath Seth and Jaspal Singh
The objective of the study is to shed light on the notion of quality investing in the Indian stock market. The study also attempts to combine the value and quality metrics to test…
Abstract
Purpose
The objective of the study is to shed light on the notion of quality investing in the Indian stock market. The study also attempts to combine the value and quality metrics to test their ability to generate a higher risk-adjusted return.
Design/methodology/approach
The paper employs asset pricing models to examine the excess risk-adjusted returns and panel regression model (random estimates) to determine the price of quality in the cross-section of Bombay Stock Exchange (BSE) listed stocks from 2003 to 2020.
Findings
The results indicate that the quality-only strategy failed to produce substantial risk-adjusted returns in the Indian stock market. The returns to long/short hedging strategy quality-minus-junk (QMJ) are significantly positive with the majority of the returns attributable to the short leg of the stock portfolio. The findings further discovered that the explanatory effect of quality on prices is limited. In particular, a strategy that combines value and quality investing generated positive and significant alphas as well as a higher Sharpe ratio.
Practical implications
The study provides investors and portfolio managers with valuable insights for navigating undervalued high-quality equities in the Indian stock market.
Originality/value
This is the first research of its kind to examine the performance of quality (Q score indicator) combined with value investing in the Indian stock market. As majority of research have concentrated on developed economies, this study offers out-of-sample evidence to validate the strategy’s success in an emerging market.
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The article aims to give an overview of the history and the achieved status of information science in the German Democratic Republic (GDR) with an emphasis on the organisation of…
Abstract
Purpose
The article aims to give an overview of the history and the achieved status of information science in the German Democratic Republic (GDR) with an emphasis on the organisation of information science and practice in the GDR and on the theoretical foundations of information science.
Design/methodology/approach
Primarily, this article is based upon critical literature studies, especially German-language books and journal articles, but the empirical basis also includes some unpublished sources (e.g. letters from information scientists from the GDR).
Findings
There are interesting results concerning the roots of information science in cybernetics, philosophy and the practical area of documentation. The naming of this knowledge field as “informatics”, “informatics of science” or “information and documentation science” is partly very distinct from Western conceptions. We found different theoretical foundations for information science including the approaches of Bonitz, Engelbert, Koblitz and Groß and Fuchs-Kittowski. In the GDR, information science and information practice were centralised, but through the information system science and technology, they were consistently accessible at all levels of professional work. With German reunification, information practice and its institutions, as well as GDR’s information science efforts, disappeared.
Research limitations/implications
The article gives hints on the importance on and the survival of some GDR approaches in contemporary information science, but those developments should be analysed in much more detail.
Originality/value
This is the first overview article on the state and entire development of information science in the GDR.
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Patrik Jonsson, Johan Öhlin, Hafez Shurrab, Johan Bystedt, Azam Sheikh Muhammad and Vilhelm Verendel
This study aims to explore and empirically test variables influencing material delivery schedule inaccuracies?
Abstract
Purpose
This study aims to explore and empirically test variables influencing material delivery schedule inaccuracies?
Design/methodology/approach
A mixed-method case approach is applied. Explanatory variables are identified from the literature and explored in a qualitative analysis at an automotive original equipment manufacturer. Using logistic regression and random forest classification models, quantitative data (historical schedule transactions and internal data) enables the testing of the predictive difference of variables under various planning horizons and inaccuracy levels.
Findings
The effects on delivery schedule inaccuracies are contingent on a decoupling point, and a variable may have a combined amplifying (complexity generating) and stabilizing (complexity absorbing) moderating effect. Product complexity variables are significant regardless of the time horizon, and the item’s order life cycle is a significant variable with predictive differences that vary. Decoupling management is identified as a mechanism for generating complexity absorption capabilities contributing to delivery schedule accuracy.
Practical implications
The findings provide guidelines for exploring and finding patterns in specific variables to improve material delivery schedule inaccuracies and input into predictive forecasting models.
Originality/value
The findings contribute to explaining material delivery schedule variations, identifying potential root causes and moderators, empirically testing and validating effects and conceptualizing features that cause and moderate inaccuracies in relation to decoupling management and complexity theory literature?
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Abdulrahman Alhassan, Lakshmi Kalyanaraman and Hanan Mohammed Alhussayen
This study aims to evaluate the resource curse hypothesis in an oil-dependent economy, Saudi Arabia, through examining the impact of oil price volatility on foreign ownership…
Abstract
Purpose
This study aims to evaluate the resource curse hypothesis in an oil-dependent economy, Saudi Arabia, through examining the impact of oil price volatility on foreign ownership among Saudi listed firms.
Design/methodology/approach
The study analyzes a unique data set of firm-level data on foreign ownership for the period 2009–2015. A multivariate regression model was applied to analyze the relationships under study.
Findings
The analysis reveals a negative association between oil price volatility and foreign ownership in firms with high leverage and low stock volatility.
Research limitations/implications
Policymakers are encouraged to develop policies to control shocks in the supply and demand of oil and enforce economic diversification. Investors can better understand the dynamics of an oil-based economy stock market based on the investment behavior of foreign investors and their response to oil price shocks.
Originality/value
This study adds to the literature by analyzing the relationship understudy in an oil-rich and oil-dependent emerging economy, where its critical economic parameters are influenced by oil price volatility and it has the largest and the most liquid stock exchange in the MENA region.
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Chensong Zhou, Kuo Wang, Ruixin Liu, Ao Shu and Dailing Wang
This study investigates the role of environmental, social and governance (ESG) policies in enhancing the resilience of Chinese firms during the COVID-19 crisis. By analyzing data…
Abstract
Purpose
This study investigates the role of environmental, social and governance (ESG) policies in enhancing the resilience of Chinese firms during the COVID-19 crisis. By analyzing data from over 3,069 publicly listed companies, the research aims to elucidate the impact of robust ESG practices on stock market performance and operational outcomes during economic disruptions.
Design/methodology/approach
Using a dataset comprising ESG scores and financial performance metrics of Chinese firms, we conduct an empirical analysis to assess the correlation between ESG practices and corporate resilience during the COVID-19 pandemic. The study focuses on evaluating the individual contributions of the social and governance components to overall firm performance.
Findings
The analysis reveals that firms with higher ESG scores, especially in social and governance aspects, exhibit superior stock market performance and operational outcomes during the pandemic. Companies with strong governance mechanisms demonstrate more pronounced benefits, including better long-term sales growth and return on equity (ROE). The findings highlight the critical role of ESG policies in ensuring corporate stability and competitive advantage during crises.
Originality/value
This article provides a comprehensive overview of the impact of corporate ESG ratings on corporate trust and offers a detailed discussion on the protective role of ESG/CSR on firm value during crises, thus providing an original literature contribution.
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Silky Vigg Kushwah, Payal Goel and Mohd Asif Shah
The current study immerses itself in the realm of diversification prospects within a select group of preeminent global stock exchanges. Specifically, the study casts its…
Abstract
Purpose
The current study immerses itself in the realm of diversification prospects within a select group of preeminent global stock exchanges. Specifically, the study casts its discerning gaze upon the financial hubs of the United States, Hong Kong, Germany, France, Amsterdam and India. In this expansive vista of international financial markets, the present analytical study aims to unravel the multifaceted opportunities that lie therein for astute portfolio management and strategic investment decisions.
Design/methodology/approach
The study encompasses daily time series data spanning from 2019 to 2022. To assess the interconnectedness among these stock indices, advanced statistical techniques, including Johansen cointegration methods and vector autoregressive (VAR) models, have been applied.
Findings
The research outcomes reveal both unidirectional and bidirectional relationships between the Indian, Hong Kong and US stock exchanges, encompassing both short-term and long-term time frames. Interestingly, the empirical findings indicate the presence of diversification opportunities between the Indian stock exchange and the stock exchanges of Germany, France and Amsterdam.
Research limitations/implications
These insights hold significant value for both Indian and international investors, including foreign institutional investors (FIIs), domestic institutional investors (DIIs) and retail investors, as they can utilize this knowledge to construct more effective and diversified investment portfolios by understanding the intricate interconnections between these prominent global stock exchanges.
Originality/value
This research undertaking aspires to bring coherence to a landscape rife with divergent interpretations and methodological divergences. We are poised to offer a comprehensive analysis, a beacon of clarity amidst the murkiness, to shed light on the intricate web of interconnections that underpin the world's stock exchanges. In so doing, we seek to contribute a seminal piece of scholarship that transcends the existing ambiguities and thus empowers the field with a deeper understanding of the multifaceted dynamics governing international stock markets.
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Magnus Jansson, Patrik Michaelsen, Doron Sonsino and Tommy Gärling
The paper aims to investigate differences in non-professional and professional stock investors’ trust in and tendency to follow financial analysts’ buy and sell recommendations.
Abstract
Purpose
The paper aims to investigate differences in non-professional and professional stock investors’ trust in and tendency to follow financial analysts’ buy and sell recommendations.
Design/methodology/approach
Online experiment conducted in Sweden in March 2022 comparing non-professional private investors (n = 80), professional investors (n = 33), and master students in finance (n = 28). Information was presented about four company stocks listed on the New York stock exchange. Two stocks were buy-recommended and two stocks sell-recommended by financial analysts. For one stock of each type, the recommendation was presented to participants. Dependent variables were predictions of the stock price after three months, ratings of confidence in the predictions and choices of holding, buying or selling the stock. Ratings were also made of the importance of presented stock-related information as well as trust in analysts’ skill and integrity.
Findings
More positive return predictions were made of buy-recommended than sell-recommended stocks. Non-professionals and to some degree finance students tended to trust financial analysts more than professional investors did and they were more influenced by the presentation of the buy recommendations. All groups made too optimistic return predictions, but the professionals were less confident in their predictions, more likely to sell the stocks and lost less on their investments.
Originality/value
A new finding is that non-professional stock investors are more likely than professional stock investors to trust financial analysts and follow their recommendations. It suggests that financial analysts’ recommendations influence non-professional investors to take unmotivated investment risks. Non-professionals in the stock market should hence be advised to exercise more caution in following analysts’ recommendations.
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Edwin Torres, Murat Kizildag and Jongwon Lee
The present research sought to analyze the effects of customer delight on both internal and external financial structures of publicly traded, service firms.
Abstract
Purpose
The present research sought to analyze the effects of customer delight on both internal and external financial structures of publicly traded, service firms.
Design/methodology/approach
Primary (i.e. survey) and secondary (i.e. financial records) data sources were gathered. A total of 685 participants responded to one questionnaire focusing on hotels and another one focused on restaurants, both of which measured levels of customer delight and satisfaction. Financial data were gathered from Center for Research in Security Prices, CRSP/COMPUSTAT.
Findings
Results of MANOVA revealed that there was a significant difference in the net profit margin (NPM) based on customer delight. Canonical correlation results exposed a significant correlation between satisfaction and delight combined and the financial performance measures (net profit margin, cash flow margin, return on assets and b-beta) combined.
Practical implications
By delighting their customers, managers will achieve higher profit margins. However, these are not likely to result in improved cash flow margin or return on assets. The effects of COVID-19 can alter yearly returns; thus, longitudinal research is needed to continue testing for the effects on delight on financial performance.
Originality/value
The relationship between delight and financial measures had not been previously determined (notwithstanding a few studies using substitute measures for financial performance). The present study uses actual data from the financial filings to empirically test their relationship to customer delight.
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