Search results

1 – 10 of over 1000
Article
Publication date: 22 July 2024

Yi Fang and Hui Niu

Investigation of the anomalies associated with crashes and jackpots in the Chinese stock market.

Abstract

Purpose

Investigation of the anomalies associated with crashes and jackpots in the Chinese stock market.

Design/methodology/approach

We propose a logit model to predict the events of crashes and jackpots in the Chinese stock market. The model introduces a new variable of the price-to-sales ratio and takes into account the market states, Up and Down.

Findings

The anomalies associated with crashes and jackpots are not related to variations in economic conditions, but are associated with limits to arbitrage. High-liquidity stocks have strong mispricing effects. The institutions’ speculative trading will push liquid stock prices further away from their fundamentals but avoid buying illiquid stocks with a higher probability of price crashes and jackpots.

Originality/value

We propose a logit model to predict the extreme events of both crash and jackpot in the Chinese stock market. Our model effectively disentangles from CRASHP and JACKP. Compared with the traditional model, it substantially enhances in-sample and out-sample predictions. Based on the predictions of the extreme events, we find two strong and robust pricing effects associated with ex ante CRASHP and JACKP in the Chinese stock market.

Details

China Finance Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 5 October 2023

Kléber Formiga Miranda and Márcio André Veras Machado

This article analyzes the hypothesis that analysts issue higher long-term earnings growth (LTG) forecasts following a market-wide investor sentiment.

Abstract

Purpose

This article analyzes the hypothesis that analysts issue higher long-term earnings growth (LTG) forecasts following a market-wide investor sentiment.

Design/methodology/approach

This study analyzed 193 publicly traded Brazilian firms listed on B3 (Brasil, Bolsa, Balcão), totaling 2,291 observations. To address the potential selection bias resulting from analysts' preference for more liquid firms, this study used the Heckman model in the analysis with samples with only one analyst and the entire sample. The study also applied other robustness tests to ensure the reliability of the findings.

Findings

The results suggest that market-wide investor sentiment influences LTG when the firm's stocks are difficult to value. Market optimism did not reflect five-year profit growth after the forecast issue, suggesting lower forecast accuracy during high investor sentiment values.

Practical implications

Volatile-earnings firms have relevant implications in LTG forecasts during bullish moments. According to the study’s evidence, investors' decisions and policymakers' and regulators' rules should consider analysts' expertise as independent information when considering LTG as input for valuation models, even under market optimism.

Originality/value

This paper contributes to the literature on the influence of investor sentiment on analysts' forecasts by incorporating two crucial elements in the discussion: the scenario free from herding behavior, as usually only one analyst issues LGT forecast for Brazilian firms, and the analysis of research hypotheses incorporates the difficulty of pricing a firm given the uncertainty of its earnings as an explanation to bullish forecast.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 15 July 2022

Abdul Waheed, Hamid Mahmood and Jun Wen

The purpose of this research is to investigate how the negative effect of litigation risk on firm performance could be controlled through the channel of voluntary disclosure and…

Abstract

Purpose

The purpose of this research is to investigate how the negative effect of litigation risk on firm performance could be controlled through the channel of voluntary disclosure and under the condition of institutional ownership.

Design/methodology/approach

To get the objectives, the study analyzed an unbalanced panel of 918 non-financial listed Chinese firms from 2010 to 18. To capture any expected unobserved heteroscedasticity and autocorrelation in the unbalanced sample, the authors have applied fixed effect regression with robust standard errors clustered at the firms' levels as suggested by Newey and West (1987).

Findings

The research provides that the good disclosure practices and presence of institutional ownership in corporations raise the trust of the investors by making the corporate operation clear in the eyes of the stakeholders. This increases the corporate credibility and as consequence corporations are protected against litigation risk. Thus, in the light of the information asymmetry and signaling theories, voluntary disclosure practices, and financial institutions' ownership, bridges the information gap and transmit a positive signal in the market regarding the better financial performance of the corporations.

Research limitations/implications

These findings are helpful for the corporate managers for effective strategic decisions, regulatory authorities for policy formulation, and individual investors for developing a diversified investment portfolio.

Originality/value

By applying the mediation and moderation effects, the research enhances the understanding of the underlying causes of the association between a firm's litigation risk and its performance. The current research contributes to the literature, that agency issues which create litigation risk could be settled internally with voluntary disclosure practices and externally with institutional ownership.

Details

International Journal of Emerging Markets, vol. 19 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 15 August 2024

Eugenia Kgomotso Mereotlhe

The aviation industry plays a vital role in supporting tourism and international businesses by providing the fastest transportation network in the world and also boosting economic…

Abstract

The aviation industry plays a vital role in supporting tourism and international businesses by providing the fastest transportation network in the world and also boosting economic growth and creating employment. However, it harms the environment, mainly through air pollution due to aircraft engines emitting heat and gases that contribute to global warming, acid rain, smog, and ozone depletion. Air travel has increased considerably over the years, and therefore aircraft emissions have contributed to the build-up of greenhouse gases (GHG), with the resultant changes in weather patterns leading to global warming and environmental deterioration. Although aviation contributes to economic and environmental development, it is a double-edged sword because it is thought to be the most challenging industry for formulating sustainable policies, based on the direct conflict between environmental impacts and economic development. This chapter explores different types of problems associated with the negative impacts of aviation carbon emissions and the carbon footprint of tourism. The chapter will also reflect on policy, regulations, and governance approaches currently in place to combat these negative impacts as well as challenges involved in policy interventions.

Details

Tourism Policy-Making in the Context of Contested Wicked Problems: Sustainability Paradox, Climate Emergency and COVID-19
Type: Book
ISBN: 978-1-80455-453-1

Keywords

Article
Publication date: 5 April 2024

Yiwei Zhang, Daochun Li, Zi Kan, Zhuoer Yao and Jinwu Xiang

This paper aims to propose a novel control scheme and offer a control parameter optimizer to achieve better automatic carrier landing. Carrier landing is a challenging work…

Abstract

Purpose

This paper aims to propose a novel control scheme and offer a control parameter optimizer to achieve better automatic carrier landing. Carrier landing is a challenging work because of the severe sea conditions, high demand for accuracy and non-linearity and maneuvering coupling of the aircraft. Consequently, the automatic carrier landing system raises the need for a control scheme that combines high robustness, rapidity and accuracy. In addition, to exploit the capability of the proposed control scheme and alleviate the difficulty of manual parameter tuning, a control parameter optimizer is constructed.

Design/methodology/approach

A novel reference model is constructed by considering the desired state and the actual state as constrained generalized relative motion, which works as a virtual terminal spring-damper system. An improved particle swarm optimization algorithm with dynamic boundary adjustment and Pareto set analysis is introduced to optimize the control parameters.

Findings

The control parameter optimizer makes it efficient and effective to obtain well-tuned control parameters. Furthermore, the proposed control scheme with the optimized parameters can achieve safe carrier landings under various severe sea conditions.

Originality/value

The proposed control scheme shows stronger robustness, accuracy and rapidity than sliding-mode control and Proportion-integration-differentiation (PID). Also, the small number and efficiency of control parameters make this paper realize the first simultaneous optimization of all control parameters in the field of flight control.

Details

Aircraft Engineering and Aerospace Technology, vol. 96 no. 3
Type: Research Article
ISSN: 1748-8842

Keywords

Book part
Publication date: 9 November 2023

Firda Nosita and Rifqi Amrulloh

The authors believe the COVID-19 pandemic has an impact on supply and demand. The potential decline in real sector performance leads to lower expectations of securities…

Abstract

The authors believe the COVID-19 pandemic has an impact on supply and demand. The potential decline in real sector performance leads to lower expectations of securities performance. The uncertainty of future performance can change investor behaviour. This study tried to gain insight into stock investor behaviour during the COVID-19 pandemic. The results showed that the majority of the investor realized and believed the pandemic would affect the stock market performance. Hence, they did not show herding behaviour and were very confident during the COVID-19 pandemic. The survey also indicates that investors tend to avoid risk rather than take the opportunity to buy at a lower price. Moreover, investors believe that the COVID-19 vaccine will soon be found, and the economy will return to normal. Government and self-regulated organizations (SRO) are responsible for making effective policies to convince the investors about the future prospect.

Details

Macroeconomic Risk and Growth in the Southeast Asian Countries: Insight from SEA
Type: Book
ISBN: 978-1-83797-285-2

Keywords

Book part
Publication date: 6 August 2024

Jeffrey A. Hayes

This chapter differentiates stress from generalized anxiety, discussing the nature and prevalence of each among college students. The chapter then delves into generalized anxiety…

Abstract

This chapter differentiates stress from generalized anxiety, discussing the nature and prevalence of each among college students. The chapter then delves into generalized anxiety in detail, covering instruments that measure generalized anxiety, cultural considerations associated with generalized anxiety and the causes, consequences, prevention and treatment of generalized anxiety among college students. The next section of the chapter focuses on social anxiety among college students, similarly addressing its defining characteristics, prevalence, cultural considerations, causes, consequences, prevention and treatment. The final section of the chapter follows a similar structure in discussing posttraumatic stress disorder (PTSD) among college students. Throughout the chapter, attention is devoted to neurotransmitters and brain structures that are involved in anxiety and its treatment through antianxiety medications. Case examples are used to help bring theoretical concepts and research findings to life.

Details

College Student Mental Health and Wellness: Coping on Campus
Type: Book
ISBN: 978-1-83549-197-3

Keywords

Article
Publication date: 28 June 2022

Hayet Soltani and Mouna Boujelbene Abbes

This study aims to investigate the impact of the COVID-19 pandemic on both of stock prices and investor's sentiment in China during the onset of the COVID-19 crisis.

Abstract

Purpose

This study aims to investigate the impact of the COVID-19 pandemic on both of stock prices and investor's sentiment in China during the onset of the COVID-19 crisis.

Design/methodology/approach

In this study, the ADCC-GARCH model was used to analyze the asymmetric volatility and the time-varying conditional correlation among the Chinese stock market, the investors' sentiment and its variation. The authors relied on Diebold and Yilmaz (2012, 2014) methodology to construct network-associated measures. Then, the wavelet coherence model was applied to explore the co-movements between these variables. To check the robustness of the study results, the authors referred to the RavenPack COVID sentiments and the Chinese VIX, as other measures of the investor's sentiment using daily data from December 2019 to December 2021.

Findings

Using the ADCC-GARCH model, a strong co-movement was found between the investor's sentiment and the Shanghai index returns during the COVID-19 pandemic. The study results provide a significant peak of connectivity between the investor's sentiment and the Chinese stock market return during the 2015–2016 and the end of 2019–2020 turmoil periods. These periods coincide, respectively, with the 2015 Chinese economy recession and the COVID-19 pandemic outbreak. Furthermore, the wavelet coherence analysis confirms the ADCC results, which revealed that the used proxies of the investor's sentiment can detect the Chinese investors' behavior especially during the health crisis.

Practical implications

This study provides two main types of implications: on the one hand, for investors since it helps them to understand the economic outlook and accordingly design their portfolio strategy and allocate decisions to optimize their portfolios. On the other hand, for portfolios managers, who should pay attention to the volatility spillovers between investor sentiment and the Chinese stock market to predict the financial market dynamics during crises periods and hedge their portfolios.

Originality/value

This study attempted to examine the time-varying interactions between the investor's sentiment proxies and the stock market dynamics. Findings showed that the investor's sentiment is considered a prominent channel of shock spillovers during the COVID-19 crisis, which typically confirms the behavioral contagion theory.

Details

Asia-Pacific Journal of Business Administration, vol. 15 no. 5
Type: Research Article
ISSN: 1757-4323

Keywords

Open Access
Book part
Publication date: 2 October 2023

Annette Cerne and Ulf Elg

This book chapter takes an institutional perspective on competing logics in global markets concerned with sustainability values and how market actors in the form of buyers and…

Abstract

This book chapter takes an institutional perspective on competing logics in global markets concerned with sustainability values and how market actors in the form of buyers and sellers attempt to solve these conflicting situations. We do this by identifying competing institutional logics in global market contexts aiming for sustainability values, together with techniques for navigating these competing institutional logics in the organizational field studied. As an empirical illustration, we use a case study of buyers and sellers in two different markets where sustainability has come into focus for their market relationships. This viewpoint allows us to better understand how global market actors deal with the competing institutional logics in their market context. We make three contributions with this research: firstly, we identify the institutional logics in global markets towards sustainability; secondly, we demonstrate how global market actors prioritize among the competing logics and their market relationships and thirdly, we outline what this means for the relationship between buyers and sellers in global markets towards sustainability.

Details

Creating a Sustainable Competitive Position: Ethical Challenges for International Firms
Type: Book
ISBN: 978-1-80455-252-0

Keywords

Article
Publication date: 28 June 2024

Ho Hoang Gia Bao, Thi Hai Ly Tran and Thi Thu Hong Dinh

This paper scrutinizes the relationship between idiosyncratic risks and stock returns at different quantiles, especially the extremely low and high ones, to explore the…

Abstract

Purpose

This paper scrutinizes the relationship between idiosyncratic risks and stock returns at different quantiles, especially the extremely low and high ones, to explore the applicability of the Prospect Theory’s rationale in Vietnam’s stock market.

Design/methodology/approach

The Prospect Theory demonstrates that investors’ attitudes towards risks can change from risk-seeking in the loss domain to risk-averse in the gain domain. This can be observed by the negative (positive) connection between idiosyncratic risks and returns for the losing (winning) stocks. To explore if the aforesaid patterns occur in Vietnam’s stock market, this paper employs the quantile regression method which is suitable for inspecting the relationship at the high and low tails of the stock returns.

Findings

The estimation results acknowledge the changes in attitudes towards risks as mentioned by the Prospect Theory.

Practical implications

The negative relationship between idiosyncratic risks and stock returns confirms investors’ risk-seeking behavior in the loss domain, which is in line with the prediction of the Prospect Theory. This behavior may cause worse investment performance as the losing stocks in investors’ portfolios remain overvalued, leading to subsequent negative returns. Therefore, investors should establish and follow their investment disciplines to protect themselves from larger losses.

Originality/value

Existing research found little evidence for the Prospect Theory’s rationale in Vietnam’s stock market, which can stem from the usage of the conditional-mean regression methods. Different from the prior studies, this paper is the first to apply the quantile regression method and provide new evidence supporting the Prospect Theory’s rationale in Vietnam’s stock market.

Details

Managerial Finance, vol. 50 no. 8
Type: Research Article
ISSN: 0307-4358

Keywords

1 – 10 of over 1000