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1 – 10 of 126Rajesh Elangovan, Francis Gnanasekar Irudayasamy and Satyanarayana Parayitam
Despite volumes of research on the efficient market hypothesis (EMH) over the last six decades, the results are inconclusive as some studies supported the hypothesis, and some…
Abstract
Purpose
Despite volumes of research on the efficient market hypothesis (EMH) over the last six decades, the results are inconclusive as some studies supported the hypothesis, and some studies rejected it. The study aims to examine the market efficiency of the Indian stock market.
Design/methodology/approach
For analysis, nine Bombay Stock Exchange (BSE) broad market indices were selected covering the study period from 01 January 2011 to 31 December 2020. The data collected for this study are daily open, high, low and closing prices of selected indices. The tools used in this study are: (1) unit root test to check the stationarity of time series, (2) descriptive statistics, (3) autocorrelation and (4) runs test.
Findings
The empirical findings of the study reveal that BSE broad market indices do not follow a random walk and Indian stock market is as weak-form inefficient.
Research limitations/implications
The findings from this study provide several avenues for future research. One of the research implications is that anomalies in the statistical results by different academicians in the finance area need to be explained by future researchers.
Practical implications
Investment companies need to understand that extraordinary skills are required to beat the market to make abnormal returns. In an inefficient market where securities do not reflect the complete available information, it is challenging for the investment brokers to convince the customers about the portfolios they recommend to the public that the rate of return would be more than expected.
Social implications
As economic growth is related to the growth in the financial sector, developing countries like India depend on the accuracy of the information. In the presence of asymmetric information, the fluctuations in the stock market would have serious harmful consequences on the economy.
Originality/value
Amid several controversies surrounding the EMH testing, this study is a modest attempt to provide evidence that the Indian stock market is in weak-form inefficient. However, it is essential to link investors' behaviour and trends observed in the financial sector to fully understand the implications of EMH.
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Sudipta Kumar Nanda and Parama Barai
This paper investigates if investors consider legal insider trading data while making investment decisions. If any investment decision is based on insider transactions, then it…
Abstract
Purpose
This paper investigates if investors consider legal insider trading data while making investment decisions. If any investment decision is based on insider transactions, then it will result in abnormal stock characteristics. The purpose of this paper is to investigate if insider trading affects stock characteristics like price, return and volume. The paper further investigates the effect on stock characteristics after the trade of different types of insiders and the relationship between abnormal return and abnormal volume.
Design/methodology/approach
The study uses the event study method to measure the abnormal price, return and volume. Two-stage least square regression is used to investigate the relationship between abnormal return and abnormal volume.
Findings
The insider trades affect price, return and volume. The results are identical for both buy and sell transactions. The trades of different types of insiders have diverse effects on stock characteristics. The trades of substantial shareholders give rise to the highest abnormal price and return, whereas the promoters' trades result in the highest abnormal volume. No relationship is detected between abnormal return and volume.
Originality/value
A novel method to calculate the abnormal price is proposed. The effect of trading of all types of insiders on stock characteristics is analyzed. The relationship between abnormal return and abnormal volume, after an insider trade, is investigated.
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Manimore Makri, Leo Themjung Makan and Kailash Chandra Kabra
This paper aims to examine the influence of board characteristics on the integrated reporting quality (IRQ) of Indian-listed companies.
Abstract
Purpose
This paper aims to examine the influence of board characteristics on the integrated reporting quality (IRQ) of Indian-listed companies.
Design/methodology/approach
The study uses a sample of 197 firms from the BSE 500 for the years 2017–2018 to 2019–2020. The proposed hypotheses are tested using two-stage least squares regression.
Findings
The study documents a positive influence of board size, board independence and gender diversity on IRQ. The study also finds that board activity and role duality are insignificant with IRQ. Among the firm-specific characteristics, variables such as firm size, profitability and capital intensity positively influence IRQ.
Originality/value
The current study presents the first investigation in the context of India on the various board characteristics influencing IRQ. The study reiterates the role that gender-diverse boards have in improving information transparency. Policymakers can therefore drive adoption by recommending changes in board characteristics and increasing the quota for women on boards.
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Megha Agarwalla, Tarak Nath Sahu and Shib Sankar Jana
This study aims to establish the dynamic relationship between international crude oil prices and Indian stock prices represented by the Bombay Stock Exchange (BSE) energy index.
Abstract
Purpose
This study aims to establish the dynamic relationship between international crude oil prices and Indian stock prices represented by the Bombay Stock Exchange (BSE) energy index.
Design/methodology/approach
Using Johansen’s cointegration test, vector error correction (VEC) model, impulse response function and variance decomposition test the study tries to ascertain the short-term and long-term dynamic association between the oil price shock and the movement of stock price and Granger causality test is applied to find out the nature of causality.
Findings
Considering vector autoregression estimation, the present study analyzes the relationship between the variables and tries to make a valid conclusion. The result of the co-integration test exhibits the presence of a long-term association between these two macro-economic variables during the period under study. Also, in the short-run VEC Granger causality result reveals that the movement of international crude oil price significantly influences the Indian stock price.
Research limitations/implications
To get a more robust result the study can be further extended by taking a longer time period with data of shorter time-frequency such as daily or weekly and further by using more sophisticated econometric and statistical tools. Further, the study can be extended to firm-level investigation considering the forward trading concentration with the Indian oil basket.
Social implications
In today’s globalized era, forecasting of share price movement helps investors in predicting the market and invest accordingly. Through this liquidity of the markets enhance and markets become more active in the global arena.
Originality/value
This study represents fresh findings in the changing time period the linkage between crude oil prices and stock prices which are of value to the academicians, researchers, policymakers, investors, market regulators, etc.
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Agnieszka Chmielewska, Bartlomiej Adam Wysocki, Elżbieta Gadalińska, Eric MacDonald, Bogusława Adamczyk-Cieślak, David Dean and Wojciech Świeszkowski
The purpose of this paper is to investigate the effect of remelting each layer on the homogeneity of nickel-titanium (NiTi) parts fabricated from elemental nickel and titanium…
Abstract
Purpose
The purpose of this paper is to investigate the effect of remelting each layer on the homogeneity of nickel-titanium (NiTi) parts fabricated from elemental nickel and titanium powders using laser powder bed fusion (LPBF). In addition, the influence of manufacturing parameters and different melting strategies, including multiple cycles of remelting, on printability and macro defects, such as pore and crack formation, have been investigated.
Design/methodology/approach
An LPBF process was used to manufacture NiTi alloy from elementally blended powders and was evaluated with the use of a remelting scanning strategy to improve the homogeneity of fabricated specimens. Furthermore, both single melt and up to two remeltings were used.
Findings
The results indicate that remelting can be beneficial for density improvement as well as chemical and phase composition homogenization. Backscattered electron mode in scanning electron microscope showed a reduction in the presence of unmixed Ni and Ti elemental powders in response to increasing the number of remelts. The microhardness values of NiTi parts for the different numbers of melts studied were similar and ranged from 487 to 495 HV. Nevertheless, it was observed that measurement error decreases as the number of remelts increases, suggesting an increase in chemical and phase composition homogeneity. However, X-ray diffraction analysis revealed the presence of multiple phases regardless of the number of melt runs.
Originality/value
For the first time, to the best of the authors’ knowledge, elementally blended NiTi powders were fabricated via LPBF using remelting scanning strategies.
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