Stock exchange

About: Stock exchange is a research topic. Over the lifetime, 39566 publications have been published within this topic receiving 612044 citations.

Women on boards, sustainability reporting and firm performance

Abstract: Purpose As pressures mount for women directors on corporate boards (WDOCBs) from different stakeholders, companies become more interested in finding out how WDOCBs impact sustainability disclosure. The purpose of this paper is to investigate the effect of gender-diverse boards on the association between sustainability reporting and shareholders’ welfare. Design/methodology/approach This paper examines the implications of women on board for firm-related factors, particularly environmental, social and governance (ESG) disclosure and firm performance. The firms studied are all listed in the Financial Times Stock Exchange 350 index between 2007 and 2012. Bloomberg social disclosure score is used and panel data through a regression model are applied. Findings The results reveal that the presence of WDOCBs favorably influences on firm’s risk and performance through promoting a firm’s investment in effectual social engagements and reporting on them. The desirable effect of WDOCB on the ESG-performance relationship leads to increased risk-adjusted and buy-and-hold abnormal returns and reduced firm risks, measured by both volatility of returns and systematic risk. Originality/value The research contributes to the literature on the relationship between women participation on corporate boards and firms’ good citizenship and enhanced shareholders’ welfare. The empirical findings contribute to providing statistical and economical validity to the UK Corporate Governance Code 2014 recommendation on the importance of board gender diversity for effective board functioning.

Assessing the Value Relevance of Accounting Data After the Introduction of IFRS in Europe

Abstract: European listed companies are required to prepare their consolidated financial statements in accordance to IFRS since 1st January 2005. IFRS are supposed lead to better accounting quality and to a closer association between market-based and accounting-based performance, or value relevance. We examine whether value relevance has improved after the compulsory adoption of IFRS using a sample of 3,721 companies listed on five European stock exchanges: Frankfurt, Madrid, Paris, London and Milan. We find little evidence of an improvement in value relevance. However, earnings are found to influence share price to a greater extent than prior to IFRS adoption, while the influence of the book value of equity is found to have decreased.

Movie Advertising and the Stock Market Valuation of Studios: A Case of “Great Expectations?”

Abstract: Product innovation is the key revenue driver in the motion picture industry. Because major studios typically launch fewer than 20 movies per year, the financial performance of a single release can have a major effect on the studio's profitability. In this paper we study how single movie releases impact the investor valuation of the studio. We analyze the change in postlaunch stock price and predict the direction and magnitude of excess returns based on the revenue expectation built up for a movie release. That expectation is set, in part, by media support; i.e., highly advertised movies are expected to draw larger audiences than others. By using an event-study methodology, we isolate the impact of a movie launch on studio stock price and track the determinants of that change. We examine a comprehensive data set comprising over 300 movies released by the largest studios. Our results indicate a clear interaction between the marketing support received by a movie and the direction and magnitude of its excess stock return post launch. Movies with above average prelaunch advertising have lower postlaunch stock returns than films with below average advertising. Our findings also suggest that movies that are hits at the box office may result in a lowering of stock price if they had high media support because of high performance expectations built up prior to launch. Thus prelaunch advertising plays a dual role of informing consumers about a movie's arrival as well as helping investors form expectations about the studio's profit performance.

The italian stock market: Efficiency and calendar anomalies☆

Abstract: After describing the various concepts of efficiency (information, valuation, full-insurance and functional) with special reference to the Italian stock market, the paper analyzes the impact of particular dates and periods of the civil year and stock exchange calendars on stock price changes to test the existence of information inefficiencies. The analysis is based on the Milan Stock Exchange's ‘MIB storico’ stock index with reference to the period 2 January 1975–22 August 1989. The events tested for systematic anomalies include weekend and public holidays, the end of the calendar and stock exchange months, and the end of the year. The results obtained are in line with those found for the U.S. market, with evidence of anomalous changes, though not all are stable over time.