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Stock exchange
About: Stock exchange is a research topic. Over the lifetime, 39566 publications have been published within this topic receiving 612044 citations.
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TL;DR: In this paper, the issue of whether stock prices and exchange rates are related or not has received considerable attention after the East Asian crisis, during which the countries affected saw turmoil in both currency and stock markets.
Abstract: I. INTRODUCTION The issue of whether stock prices and exchange rates are related or not has received considerable attention after the East Asian crisis. During the crisis the countries affected saw turmoil in both currency and stock markets. If stock prices and exchange rates are related and the causation runs from exchange rates to stock prices, then the crisis in the stock markets can be prevented by controlling the exchange rates. Moreover, developing countries can exploit such a link to attract/stimulate foreign portfolio investment in their own countries. Similarly, if the causation runs from stock prices to exchange rates then authorities can focus on domestic economic policies to stabilise the stock market. If the two markets/prices are related then investors can use this information to predict the behaviour of one market using the information on other market.
190 citations
TL;DR: In this article, the authors developed and empirically tested a disclosure model for the fifty Czech joint-stock companies that were included in the 1993 Prague Stock Exchange Index, and the results provided initial insights into Czech managements' choices concerning financial reporting and suggest topics for additional research.
Abstract: The paper1develops and empirically tests a disclosure model for the fifty Czech joint-stock companies that were included in the 1993 Prague Stock Exchange Index. Independent variables are drawn from prior theoretical and empirical research concerning voluntary disclosure. Dependent variables are based on Czech laws and regulations concerning financial disclosures. Univariate analyses generally support the existence of the hypothesized relationships between extent of disclosure in annual reports and firm size, profitability performance, financial risk, and monitoring variables. Multivariate regressions explain about 25% of the variance in the extent of disclosure in annual reports. Statistically significant variables in the multiple regressions include type of auditor, number of employees, stock exchange listing status, and return on equity performance. The results provide initial insights into Czech managements' choices concerning financial reporting and suggest topics for additional research
190 citations
TL;DR: In this paper, the authors suggest that the discrepancy between the actual and predicted prices is caused by taxes, and they use a simple arbitrage model to show that if the stock price drops, the investor can pass part of the loss on to the government by selling the stock.
Abstract: Stock index futures prices are generally below the level predicted by simple arbitrage models. This paper suggests that the discrepancy between the actual and predicted prices is caused by taxes. Capital gains and losses are not taxed until they are realized. As Constantinides demonstrates in a recent paper, this gives stockholders a valuable timing option. If the stock price drops, the investor can pass part of the loss on to the government by selling the stock. On the other hand, if the stock price rises, the investor can postpone the tax by not realizing the gain. Since this option is not available to stock index futures traders, the futures prices will be lower than standard no-tax models predict. ON 24 FEBRUARY 1982, the Kansas City Board of Trade began trading futures contracts on the Value Line Average stock index. During the next two months, both the Chicago Mercantile Exchange and the New York Futures Exchange also initiated trading in stock index futures. Although these contracts are actively traded, their prices have puzzled both practitioners and academics. The observed
190 citations
TL;DR: In this article, the authors demonstrate a significant positive association between stock market performance measures and the quality of government institutions and the results demonstrate countries with better developed government institutions would favor stock markets with higher market capitalization, better turnover ratios, higher value in shares traded and greater number of listed companies.
Abstract: How do government policies and institutions affect stock market performance? As stock markets grow broader and deeper in African countries, the question becomes more critical. Government quality dynamics of corruption control, government effectiveness, political stability or no violence, voice and accountability, regulation quality and rule of law are instrumented with income levels, religious dominations, press freedom degrees, and legal origins to account for stock market performance dynamics of capitalization, value traded, turnover and number of listed companies. The results demonstrate a significant positive association between stock market performance measures and the quality of government institutions. These findings suggest countries with better developed government institutions would favor stock markets with higher market capitalization, better turnover ratios, higher value in shares traded and greater number of listed companies.
189 citations
189 citations