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1 – 10 of 411Zhuo (June) Cheng and Jing (Bob) Fang
This study examines the effect of stock liquidity on the magnitude of the accrual anomaly.
Abstract
Purpose
This study examines the effect of stock liquidity on the magnitude of the accrual anomaly.
Design/methodology/approach
This paper examines the relation—both time-series and cross-sectional—between stock liquidity and the magnitude of the accrual anomaly and use the 2001 minimum tick size decimalization as a quasi-experiment to establish causality.
Findings
There is both cross-sectional and time-series evidence that stock liquidity is negatively related to the magnitude of the accrual anomaly. Moreover, the extent to which investors overestimate the persistence of accruals decreases with stock liquidity. Results from a difference-in-differences analysis conducted using the 2001 minimum tick size decimalization as a quasi-experiment suggest that the effect of stock liquidity on the accrual anomaly is causal. The findings of this study are consistent with the enhancing effect of stock liquidity on pricing efficiency.
Originality/value
The study's findings are well aligned with the mispricing-based explanation for the accrual anomaly, suggesting that the improvement in market-wide stock liquidity drives the contemporaneous decline in the magnitude of the accrual anomaly, at least to a great extent.
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Silvio John Camilleri and Francelle Galea
The purpose of this paper is to obtain new empirical evidence about the connections between equity trading activity and five possible liquidity determinants: market…
Abstract
Purpose
The purpose of this paper is to obtain new empirical evidence about the connections between equity trading activity and five possible liquidity determinants: market capitalisation, dividend yield, earnings yield, company growth and the distinction between recently listed firms as opposed to more established ones.
Design/methodology/approach
The authors use a sample of 172 stocks from four European markets and estimate models using the entire sample data and different sub-samples to check the relative importance of the above determinants. The authors also conduct a factor analysis to re-classify the variables into a more succinct framework.
Findings
The evidence suggests that market capitalisation is the most important trading activity determinant, and the number of years listed ranks thereafter.
Research limitations/implications
The positive relation between trading activity and market capitalisation is in line with prior literature, while the findings relating to the other determinants offer further empirical evidence which is a worthy addition in view of the contradictory results in prior research.
Practical implications
This study is of relevance to practitioners who would like to understand the cross-sectional variation in stock liquidity at a more detailed level.
Originality/value
The originality of the paper rests on two important grounds: the authors focus on trading turnover rather than on other liquidity proxies, since the former is accepted as an important determinant of the liquidity-generation process, and the authors adopt a rigorous approach towards checking the robustness of the results by considering various sub-sample configurations.
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Zhuo (June) Cheng and Jing (Bob) Fang
This study aims to examine what underlies the estimated relation between idiosyncratic volatility and realized return.
Abstract
Purpose
This study aims to examine what underlies the estimated relation between idiosyncratic volatility and realized return.
Design/methodology/approach
Idiosyncratic volatility has a dual effect on stock pricing: it not only affects investors' expected return but also affects the efficiency of stock price in reflecting its value. Therefore, the estimated relation between idiosyncratic volatility and realized return captures its relations with both expected return and the mispricing-related component due to its dual effect on stock pricing. The sign of its relation with the mispricing-related component is indeterminate.
Findings
The estimated relation between idiosyncratic volatility and realized return decreases and switches from positive to negative as the estimation sample consists of proportionately more ex ante overvalued observations; it increases and switches from negative to positive as the estimation sample consists of proportionately more ex post overvalued observations. In sum, the relation of idiosyncratic volatility with the mispricing-related component dominates its relation with expected return in its estimated relation with realized return. Moreover, its estimated relation with realized return varies with research design choices and even switches sign due to their effects on its relation with the mispricing-related component.
Originality/value
The novelty of the study is evident in the implication of its findings that one cannot infer the sign of the relation of idiosyncratic volatility with expected return from its estimated relation with realized return.
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Most of the major Islamic countries’ stock exchanges have not been able to perform at the same pace with the major emerging countries’ stock exchanges since the mid of 1990s. The…
Abstract
Purpose
Most of the major Islamic countries’ stock exchanges have not been able to perform at the same pace with the major emerging countries’ stock exchanges since the mid of 1990s. The purpose of this paper is to examine the implications of stock market liberalization on cost of capital as one of the crucial driver to stock market development and physical investment growth in emerging Islamic countries.
Design/methodology/approach
This study employs static panel data techniques on the sample of seven emerging Islamic countries over the years 1989-2008.
Findings
The findings of this study suggest that stock market liberalization significantly reduces cost of capital in the stock markets of sample Islamic countries, which carries policy-oriented implications. Reduction in the cost of capital increases the number of exchange-traded companies, profitability of projects and aggregate investment level; therefore, the study findings are highly concerned by the economic policymakers, corporations and investors alike.
Research limitations/implications
In the literature, different proxies are employed to measure stock market liberalization and cost of capital as well. Due to data limitations, this study could not employ different proxies for both, especially for stock market liberalization, for robustness purpose. That limitation further restricted the coverage of Islamic stock markets and time period. Therefore, generalization of the study results for overall Islamic stock markets can be slightly drawn.
Originality/value
The paper provides further understanding regarding the effects of SML on cost of capital, thereby indirectly on the stock market development, in the context of EIC.
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The purpose of this paper investigates dynamic ease distributions of clothes at bust and waist lines with different body surface angle by using a Qualisys three-dimensional motion…
Abstract
Purpose
The purpose of this paper investigates dynamic ease distributions of clothes at bust and waist lines with different body surface angle by using a Qualisys three-dimensional motion capture system (3DMCS).
Design/methodology/approach
The current method first obtain the specific markers of participants and their clothes along the bust and waist lines through 3DMCS, then using the least square method and four piecewise polynomial fitting participants and their clothes' bust and waist curves. The coordinates of the markers were tracked by the 3DMCS, while the participants under different body surface angle walked on a treadmill calculated the distances of markers coordinates to the participants' bust and waist curves. Finally, the data of samples were analyzed. It was found that the dynamic ease distributions showed different patterns at different body surface angle.
Findings
The results revealed the bust convex angle is 26.53 degrees (Specification:X3) and back slope angle is 13.96 degrees (Specification: Y1), the fluctuation of participant ease distributions on bust section was most obvious, and the maximum fluctuation value was ±20 mm and ±25 mm. The ease distributions of participant waist section fluctuated most obviously when the bust convex angle is 28.10 degrees (Specification: X5) and the back slope angle is 13.96 degrees (Specification: Y1), and the maximum fluctuation was ±30 mm and ±20 mm. The bust convex angle has the greatest influence on 1# garment, and the back slope angle has the greatest influence on 2# garment.
Originality/value
Currently, there is little information in the literature about dynamic ease distributions of garment on a different body types. This paper takes different body surface angles as the research objects to analyze the ease distributions of different clothes, the conclusion can provide reference data for 3D garment modeling and improve the authenticity of virtual garment fitting.
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Sérgio Kannebley Júnior, Diogo de Prince and Daniel Quinaud Pedron da Silva
Brazil uses the dollar as a vehicle currency to invoice its exports. This fact produces a tendency toward equalizing the prices of products in dollars in the international market…
Abstract
Purpose
Brazil uses the dollar as a vehicle currency to invoice its exports. This fact produces a tendency toward equalizing the prices of products in dollars in the international market and reducing the ability of firms to practice pricing-to-market (PTM). This study aims to evaluate the hypothesis by estimating error correction models in panel data, obtaining estimates of PTM for 25 manufacturing products exported by Brazil between 2010 and 2020.
Design/methodology/approach
This study uses the correlated common effect estimator proposed by Pesaran (2006) and Chudik and Pesaran (2015b) to estimate the PTM coefficients.
Findings
Results of this study indicate that exporters practice local-currency pricing stability for dollar prices. This study obtains that Brazilian exporters tend to stabilize their dollar price for exports, reducing heterogeneity between destination markets. The results are in agreement with the hypothesis of the prevalence of the coalescing effect of Goldberg and Tille (2008) and lower sensitivity of the markup adjustment to the specific market, as pointed out by Corsetti et al. (2018). The pricing of Brazilian exports in dollars reflects a profit maximization strategy that considers an international price system based on global demand for products.
Originality/value
In addition to analyzing the dollar role in the pricing of Brazilian exports through the triangular decomposition, this study also shows the importance of examining the cross-section dependence of errors, considering the heterogeneous cointegration in export pricing models and producing PTM estimates for short-term and long-term.
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Farmers are the largest group of financially excluded persons in Nigeria, thereby highlighting the supply shortfall in finance to agriculture in Nigeria. Availability of finance…
Abstract
Purpose
Farmers are the largest group of financially excluded persons in Nigeria, thereby highlighting the supply shortfall in finance to agriculture in Nigeria. Availability of finance would go a long way in improving output and productivity in agriculture, and consequently help in reducing poverty. This study conducts an empirical investigation of the effects of financial inclusion on agricultural productivity in Nigeria.
Design/methodology/approach
This study makes use of the Living Standards Measurement Study–Integrated Surveys on Agriculture (LSMS-ISA). This is a new data set on agricultural households which contains information on agricultural activities and various household activities, including banking, savings and insurance behaviour. Considering the data are such that there are observations for households over three time periods, the study exploits the time series and cross-section dimension of the data by using panel data estimation.
Findings
The empirical results of the study show that financial inclusion, irrespective of how it is measured, has exerted positive and statistically significant effects on agricultural productivity in Nigeria.
Originality/value
While considerable research has been conducted to examine how finance affects broad macroeconomic aggregates, little is known about the effects of finance at the household and individual level. It is important to explicitly account for financial inclusion when examining the effects of finance on individuals and households. This study improves on existing research and offers new insights into the effects of financial inclusion on the economic activities of agricultural households in Nigeria.
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Smritishikha Choudhury, Chayanika Senapati and Nripendra Narayan Sarma
In the last few decades, the growth in management institutions in India has become significant. The Open and Distance Learning (ODL) institutions also have started offering…
Abstract
Purpose
In the last few decades, the growth in management institutions in India has become significant. The Open and Distance Learning (ODL) institutions also have started offering management programmes at various levels. In the ODL scenario, the learning path has been shifting from the traditional Self-Learning Material (SLM) -based model to technology-mediated platform. The digital divide in India is also a widely discussed area. In this context, a need has been felt to understand the implications for educators, more specifically, for the programmes offered through technology-enabled ODL mode.
Design/methodology/approach
This study uses triangulation method covering literature review, personal interview and survey. Primary data have been collected through structured questionnaire in the Google Form administered on the learners of UG and PG progammes of management in Krishna Kanta Handiqui State Open University (KKHSOU), India. The sample size is 101, and the sampling frame is within Assam, a province of India. Select interviews (15 nos.) were also conducted with a cross section of learners to capture the emerging shift in the learning path and the limiting factors of digital divide.
Findings
Learners possess multiple digital devices for e-learning (41.8% uses laptop and 88.8% uses android phone). Interaction in WhatsApp and Telegram groups are mostly related with evaluation and course administration, rather than content and academic discussion. eSLMs are widely used. Though promoted, video lectures are not widely used. Some of the problems faced by the learners are low bandwidth, high cost of data subscription etc. Learners are not constrained by digital device, and they are engaged in positive communication with stake holders in digital platform.
Originality/value
This study will help in understanding the technology-enabled learning for management education in ODL mode in India. As a wide majority of the learners (88%) are dependent on small screen; print SLM and eSLM on a larger screen can provide augmented learning in case of complex topics like analysis of financial statements, project scheduling etc. Though the COVID-19 pandemic forced a shift in learning path, the transition is not full. The digitally constrained learners still look for solutions to complex learning problems mainly through print SLM and counselling. The talent of the students cannot be facilitated in WhatsApp and Telegram e-mentoring groups, like the way it could be done in learning management system (LMS)-mediated platforms.
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Luca Possidente, Nicola Tondini and Jean-Marc Battini
Buckling should be carefully considered in steel assemblies with members subjected to compressive stresses, such as bracing systems and truss structures, in which angles and…
Abstract
Purpose
Buckling should be carefully considered in steel assemblies with members subjected to compressive stresses, such as bracing systems and truss structures, in which angles and built-up steel sections are widely employed. These type of steel members are affected by torsional and flexural-torsional buckling, but the European (EN 1993-1-2) and the American (AISC 360-16) design norms do not explicitly treat these phenomena in fire situation. In this work, improved buckling curves based on the EN 1993-1-2 were extended by exploiting a previous work of the authors. Moreover, new buckling curves of AISC 360-16 were proposed.
Design/methodology/approach
The buckling curves provided in the norms and the proposed ones were compared with the results of numerical investigation. Compressed angles, tee and cruciform steel members at elevated temperature were studied. More than 41,000 GMNIA analyses were performed on profiles with different lengths with sections of class 1 to 3, and they were subjected to five uniform temperature distributions (400–800 C) and with three steel grades (S235, S275, S355).
Findings
It was observed that the actual buckling curves provide unconservative or overconservative predictions for various range of slenderness of practical interest. The proposed curves allow for safer and more accurate predictions, as confirmed by statistical investigation.
Originality/value
This paper provides new design buckling curves for torsional and flexural-torsional buckling at elevated temperature since there is a lack of studies in the field and the design standards do not appropriately consider these phenomena.
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