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1 – 10 of 34Liya A, Qian Qin, Hafiz Waqas Kamran, Anusara Sawangchai, Worakamol Wisetsri and Mohsin Raza
This study purposes to measure the influencing relations between macroeconomic indicators and the prices of gold. Further study measures several factors with the gold price in the…
Abstract
Purpose
This study purposes to measure the influencing relations between macroeconomic indicators and the prices of gold. Further study measures several factors with the gold price in the context of the United States.
Design/methodology/approach
The secondary data are collected to measure relationship and fluctuation of gold prices the data collected from the website world development indicators (WDI) for the period of 31 years 1990–2019. This paper uses different econometric analysis such as analytical unit root test for stationary of data, descriptive statistical analysis for description of data, correlation coefficient test for measuring the inter correlation, and ordinary least square regression analysis for determine the impact of dependent and independents variables. In this research paper, gross domestic product (GDP), inflation rate (IR), unemployment rate (UR), real interest rate (RIR), gross national product (GNP), standard trade value (STV) are included in macroeconomic indicators and consider as independent. The gold prices are considered as dependent variable.
Findings
This study's overall results show an important and optimistic association between GDP, IR and STV with the gold price. Moreover, the RIR shows negative and does not show significant relation with the gold prices.
Originality/value
Since several economic crises were included during the data selection studied in this research paper, data error may be present, resulting in the instability of the overall data. However, the study still hopes to find the guiding role of these macro gold price factors in the price of gold from the limited data set. The basic scope of research is that research is limited in the United States.
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The authors examine the effect of split environmental, social and governance (ESG) ratings on information asymmetry, corporate value and trading behavior. The authors test the…
Abstract
The authors examine the effect of split environmental, social and governance (ESG) ratings on information asymmetry, corporate value and trading behavior. The authors test the risk-based hypothesis and the optimism-bias hypothesis on the relationship between diverging opinions and future stock prices. The authors results show that split ESG ratings is positively related to idiosyncratic volatility, an alternative measure for information asymmetry. Further, the negative effect of split ESG ratings on cumulative abnormal return under short-selling constraints is consistent with the optimism bias hypothesis. The authors find a negative relationship between split ESG ratings and the net purchase ratio (NPR) of pension funds. Considering that the NPR is a direct measure of net demand, ESG disagreement may hinder socially responsible investing (SRI) in a firm. This study directly demonstrates the negative effect of ESG disagreement on firm value and investment by Korea's National Pension Service (NPS). The results offer valuable insights into policymakers, as the wide divergence in ESG ratings requires urgent attention to expand SRI.
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Saumya Ranjan Dash and Jitendra Mahakud
The purpose of this paper is to evaluate the pricing implication of aggregate market wide investor sentiment risk for cross sectional return variation in the presence of other…
Abstract
Purpose
The purpose of this paper is to evaluate the pricing implication of aggregate market wide investor sentiment risk for cross sectional return variation in the presence of other market wide risk factors.
Design/methodology/approach
The paper employs the Fama and French time series regression approach to examine the impact of market risk premium, size, book‐to‐market equity, momentum and liquidity as risk factors on stock return. Given the importance of inherent imperfect rationality or sentiment risk, the paper further investigates the impact of investor sentiment on the cross section of stock return.
Findings
The choice of a five factor model is apparently persuasive for consideration in investment decisions. Stocks are hard to value and difficult to arbitrage with characteristics which are significantly influenced with the sentiment risk. It is naïve to argue for the universal pricing implication of sentiment risk in a multifactor model framework.
Research limitations/implications
The test assets portfolios are not segregated as per any industry criteria.
Practical implications
Investment managers can use a contrarian investment strategy, for the stocks that are hard to value and riskier to arbitrage to gain excess return when the market follows a downward trend.
Originality/value
This makes the first attempt towards the investigation of the impact of the sentiment risk on cross sectional return variation from an emerging market perspective on such a diversified and large test asset portfolios. The paper has extended the available literature by investigating the impact of sentiment risk after controlling the liquidity risk factor in a multifactor specification. This measure of market wide irrational sentiment index is more comprehensive.
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The purpose of this paper is to use investor sentiment (IS) as a conditioning information variable for the cross-sectional return predictability tests of alternative asset pricing…
Abstract
Purpose
The purpose of this paper is to use investor sentiment (IS) as a conditioning information variable for the cross-sectional return predictability tests of alternative asset pricing models (APMs).
Design/methodology/approach
Cross-sectional tests of alternative APMs in the linear beta representation and stochastic discount factor specifications, Fama and Macbeth and generalized method of moments techniques have been used.
Findings
Results reveal that IS as a conditioning information variable contains significant information for making the discount factors time varying. Model comparison test statistics suggests that among the alternative APMs, the conditional five-factor model (FFM) performs better.
Research limitations/implications
Empirical analysis does not extend to the inclusion of the business-cycle conditioning information variables for the test of APMs.
Practical implications
The potential benefit of the conditional FFM can be leveraged upon for cost of capital determination, and mutual fund manager’s portfolio performance evaluation when the portfolio is heavily weighted with sentiment-sensitive hard to value and difficult to arbitrage stocks. During volatile and boom periods in stock markets the IS scaled conditional APMs may be useful for the fundamental value determination of sentiment-sensitive stocks.
Originality/value
This study extends available literature in the context of both developed and emerging equity markets by exploring the cross-sectional tests of conditional APMs using IS as the conditioning information variable. To the author’s knowledge, this is perhaps the first study that examines IS as conditioning information for the cross-sectional tests of alternative APMs.
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Daniel Sperling, Shinya Hanaoka, Akira Okada, Makoto Okazaki, Wolfgang Shade and Masaharu Yagishita
Ataur Belal, Crawford Spence, Chris Carter and Jingqi Zhu
The purpose of this paper is to explore the work practices of Big 4 firms in Bangladesh with the aim of exploring the extent to which global professional service firms (GPSFs) can…
Abstract
Purpose
The purpose of this paper is to explore the work practices of Big 4 firms in Bangladesh with the aim of exploring the extent to which global professional service firms (GPSFs) can be thought of as being genuinely “global”.
Design/methodology/approach
Interviews were undertaken with the vast majority of Big 4 partners in Bangladesh. These interviews explored a number of themes related to the professional service work context in Bangladesh and the relationship between local and global firms.
Findings
The central finding of this paper is that although the Big 4 have a long-established presence in Bangladesh, local societal factors heavily influence the realities of work for accountants there. In most cases the Big 4 firms establish correspondent firms (instead of full member firms) in Bangladesh and tend to offer restricted service lines. Additionally, the paper identifies professional, commercial and cultural barriers to greater Big 4 involvement in the local market. Conceptually, the chief contribution of this paper is to explore how the effects of globalizing capitalism and standardised “best practices” in global professional service work are mediated through the societal effects of Bangladeshi society, resulting in the Big 4 having only a tentative presence in the Bangladeshi market.
Research limitations/implications
The findings cast doubt on the extent to which self-styled GPSFs are truly “global” in nature. Future work examining the Big 4, or accounting more generally, in the context of globalization, would do well to pay greater attention to the experience of professionals in emerging markets.
Originality/value
Whilst there has been much work looking at accounting and accountants in the context of globalization, this work has tended to privilege “core” western empirical settings. Very little is known about professional service firms in “peripheral” emerging markets. Furthermore, this study extends the application of the system, society and dominance framework by mapping the interactions and dynamics of these three sources of influence in the setting of PSFs.
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This article surveys available research on the contingent‐claims approach to risky debt valuation. The author describes both the structural and reduced form versions of contingent…
Abstract
This article surveys available research on the contingent‐claims approach to risky debt valuation. The author describes both the structural and reduced form versions of contingent claims models and summarizes both the theoretical and empirical research in this area. Relative to the progress made in the theory of risky debt valuation, empirical validation of these models lags far behind. This survey highlights the increasing gap between the theoretical valuation and the empirical understanding of risky debt.
Asmund Rygh and Carl Henrik Knutsen
Recent international business research finds that state-owned multinational enterprises (SOMNEs) invest relatively more in politically risky host countries than do privately-owned…
Abstract
Purpose
Recent international business research finds that state-owned multinational enterprises (SOMNEs) invest relatively more in politically risky host countries than do privately-owned multinational enterprises (MNEs). This study aims to investigate theoretically and empirically whether state ownership mitigates the impact of host-country political risk on subsidiary economic risk.
Design/methodology/approach
The authors link theoretical arguments on state ownership to arguments from non-market strategy literature to outline mechanisms whereby state ownership can buffer subsidiaries from political risk, weakening the link between host-country political risk and earnings volatility in subsidiaries. Using a data set on Norwegian MNEs’ foreign subsidiaries across almost two decades, the authors test this prediction using both matching methods and panel regressions.
Findings
While standard panel regressions provide empirical support only for the infrastructure sector and for the highest political risk contexts, nearest-neighbour matching models – comparing only otherwise similar private- and SOMNE subsidiaries using the full sample – reveal more general support for the political risk mitigation hypothesis.
Originality/value
The study presents the first comprehensive analysis of whether state ownership can mitigate the effect of political risk on subsidiary economic risk.
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This paper builds homogenous series of the rate of surplus value (RSV) for the Chinese economy over the extended period 1956–2014 with a Marxian approach. It finds that the high…
Abstract
This paper builds homogenous series of the rate of surplus value (RSV) for the Chinese economy over the extended period 1956–2014 with a Marxian approach. It finds that the high profitability that stimulated capital accumulation in the decade before the 2008 crisis had relied on the continuous growth in the RSV. Given that the global crisis and changes in the domestic economy undermine all the conditions maintaining the accumulation model (an expanding external market, a relatively large reserve army of labor, and a low debt-income ratio), the RSV has failed to increase and profitability declined since 2008. Thus, this paper interprets the so-called new normal of the Chinese economy as a stage of declining profitability that results mainly from the stagnant RSV and the rising value composition of capital.
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Describes the work of the UK’s Share the Vision and the need to consider those who are visually impaired when planning library services. Draws attention to sources of advice and…
Abstract
Describes the work of the UK’s Share the Vision and the need to consider those who are visually impaired when planning library services. Draws attention to sources of advice and information on this topic.
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